Ad Spend and Management Fees: What Are You Paying For?
When you receive a marketing proposal, it should be clear which part pays for the service and which part pays the advertising platform. If those amounts are bundled together without explanation, it can be difficult to compare options.
Here is how I separate the costs at NM Consulting GR.
Ad spend goes to the advertising platform
Ad spend is the amount paid to run advertising on a platform such as Google or Meta. It is separate from the work of planning, building, reviewing, and managing the campaigns.
At NM Consulting GR, you pay the platforms directly. I do not add a markup to that spend. Your account stays in your name, and you keep any rewards your payment card offers.
The management fee pays for agreed work
A service fee covers the work described in the scope. For advertising, that may include campaign planning, setup, copy, creative coordination, search term reviews, exclusions, and performance reporting.
The exact scope should be clear before work begins. Ask what is included, how changes are handled, and what requires a separate quote. A lower fee is not automatically a better deal if the work you need is excluded.
Platform subscriptions are another cost
Email software, call tracking, hosting, and other tools can have their own subscriptions. Not every business needs the same tools or plan.
For example, Constant Contact billing depends on factors including the selected plan and contact tier. Its billing explanation describes how account changes can affect the charge. That is one reason I keep the platform subscription separate from the work of creating your emails.
Ask these questions before agreeing to a proposal
- What amount goes directly to the advertising platforms?
- What work does the service fee include?
- Which subscriptions will I need to pay?
- Who owns the accounts, and how will I retain access?
- How are budget changes and additional work approved?
You should be able to understand the answers without decoding a long explanation. If something is unclear, ask for the scope and costs in writing.
Look for clarity as well as price
A fair price should make sense for the work, responsibility, and support involved. The goal is an arrangement where you know what you are buying and the person doing the work can deliver it reliably.
You can read about my approach to fair pricing and clear costs or contact me to discuss a scope for your business. No hidden markup on ad spend, and a clear service price before we begin.
Need help putting this into practice?
Talk with Nikki ↗