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Advertising and media
How agencies charge: common fee models
| Fee model | How it works | Best for | Risk to manage |
|---|---|---|---|
| Retainer | Fixed monthly fee for an agreed scope | Ongoing work: social media, brand support | Scope drifts unless defined in hours or outputs |
| Project fee | Fixed price for a defined project | Campaigns, websites, one-off launches | Changes outside scope cost extra |
| Hourly or day rate | You pay for time actually spent | Unpredictable or advisory work | Harder to budget in advance |
| Media commission | Percentage of the media budget placed | Large paid media budgets | Can reward spending more, not better |
| Performance-based fee | Part of the fee depends on agreed results | Measurable goals such as leads or sales | Agency must control enough of the drivers |
| Fee model | How it works | Best for | Risk to manage |
|---|---|---|---|
| Retainer | Fixed monthly fee for an agreed scope | Ongoing work: social media, brand support | Scope drifts unless defined in hours or outputs |
| Project fee | Fixed price for a defined project | Campaigns, websites, one-off launches | Changes outside scope cost extra |
| Hourly or day rate | You pay for time actually spent | Unpredictable or advisory work | Harder to budget in advance |
| Media commission | Percentage of the media budget placed | Large paid media budgets | Can reward spending more, not better |
| Performance-based fee | Part of the fee depends on agreed results | Measurable goals such as leads or sales | Agency must control enough of the drivers |