Synetix SystemsA percentage of spend is a normal way to pay a Google Ads agency, but it pays the agency more when you spend more. A flat fee removes that pull. Compare both at your real budget, and ask what the fee pays for.
What agencies charge
Agency blogs usually quote 10% to 20% of monthly ad spend, sometimes up to 30% on small budgets. The rate often falls as spend rises. These figures come from agency pricing pages, not from a survey, so treat them as a rule of thumb. Examples: OuterBox, Credo.
The three common models:
| Model | How it works | Good for | Watch for |
|---|---|---|---|
| Percentage of spend | A share of what you spend each month | Budgets that change a lot | The fee rises with spend, not with results |
| Flat fee | One price each month, or one price for each budget band | Steady budgets | What happens when your budget changes band |
| Base plus percentage | A fixed base, plus a share above a spend level | Large accounts | Two fees to compare, not one |
The math at your budget
Put your real monthly budget into each quote. For example, at 15%:
| Monthly ad spend | 15% fee |
|---|---|
| $2,000 | $300 |
| $5,000 | $750 |
| $10,000 | $1,500 |
| $25,000 | $3,750 |
The work to manage a $25,000 account is more than the work for a $2,000 account. It is usually not twelve times more. That is why flat fees get cheaper, in relative terms, as budgets grow, and percentage fees get cheaper as budgets shrink.
The conflict, stated fairly
A percentage fee does not mean the agency wastes your money. Most agencies want to keep the client, and wasted spend loses clients. But the incentive is real: when the agency tells you to raise the budget, its fee goes up too. You should know that when you judge the advice.
Questions to ask any agency
- Who owns the Google Ads account? It should be you, with the agency as a manager.
- What counts as a conversion? A form fill, or a lead you confirmed as real?
- How often does someone read the search terms report?
- Is there a setup fee or a minimum term?
- If I raise my budget, does the fee change, and why?
A flat-fee option
Synetix Ads charges a flat fee set by the budget cap you choose, not by what Google actually spends, so the fee does not go up when your spend does.