A percentage-of-spend arrangement ties the fee to media investment. Neither description tells you how much planning, creative coordination, optimisation or reporting the agency will provide.
Compare the operating agreement before comparing the numbers. Identify the channels, markets, campaigns, assets and decisions involved. Then ask how the fee changes when that workload changes. The most useful model is one you can understand, manage and connect to a clear delivery responsibility.
What each fee model usually describes
Flat fee
An agreed amount for a defined period or project scope. The proposal should explain included work, capacity limits and the process for additional requests.
Percentage of spend
A fee calculated from an agreed media-spend base. The proposal should define the percentage, minimums, tiers, eligible costs and treatment of changes.
Hybrid arrangement
A combination such as a base fee plus a variable component. Each element needs a clear calculation and a reason for being included.
These labels are starting points. An agency may structure a particular contract differently, so read the actual terms rather than assuming the label answers every question.
Make the scope comparable first
Ask each agency to price the same brief. Specify the markets, channels, objectives, account condition, expected campaign count and reporting needs. Include the current state of conversion tracking and landing pages. A team taking over a clean, established account faces different initial work from one building the measurement and campaign structure from the beginning.
Separate media management from creative production, landing-page work, analytics setup and other services. They may be included, optional or supplied by your team. Unclear boundaries make an inexpensive proposal appear more complete than it is and create frustration after work starts.
| Question | What a clear proposal should say |
|---|---|
| Which channels and markets? | Named platforms and geographies, with limits if any |
| What planning work? | Research, audience, channel and budget responsibilities |
| Who supplies creative? | Asset quantities, adaptation responsibilities and review process |
| What optimisation? | Activities, review rhythm and decision ownership |
| What reporting? | Measures, commentary, access and meeting cadence |
| What changes the fee? | Additional scope triggers and approval process |
| What happens at exit? | Access, account ownership, data and handover responsibilities |
Explore media planning and buying to discuss the scope alongside the commercial arrangement.
Use the arithmetic without mistaking it for value
Those figures are examples only. They are not Quiamo prices, market benchmarks or quotations. They exclude taxes, production costs, platform spend and any other charges. They are comparable only if both proposals cover the same work and the percentage model has no other conditions.
The lower fee is not automatically the better choice. A business may need extensive creative adaptation or technical setup that one proposal excludes. Another may need a limited maintenance scope. Compare the work, capability and decision process behind each amount.
Ask where incentives and decisions sit
Under any fee model, agree who can change spend and how those decisions are justified. Ask the agency to explain a budget recommendation in relation to objectives, available evidence and operating constraints. Keep approval rights explicit.
With a percentage arrangement, understand how higher spend changes the fee. With a flat fee, understand what happens if workload grows while spend stays similar. A new market, added language or larger creative-testing programme can change the work even without a dramatic budget increase.
Demand visibility into costs and account access
Before launch, agree how the media budget, agency fee and third-party costs appear in reports or invoices. Clarify the treatment of discounts, commissions, rebates or other commercial arrangements where applicable. Ask for a direct answer that matches the contract.
Also confirm who owns the advertising accounts, who has administrative access and how access will be managed if the relationship ends. Practical control over accounts and records should not be left until a difficult handover. The same applies to audiences, creative source files and landing pages, subject to platform rules and agreed rights.
Share your channels, markets and current setup. We can discuss the work before the fee model.
Compare the scope of our media briefJudge reporting by the decisions it supports
A useful report explains what changed, what the team learned and what action follows. It should distinguish platform activity from outcomes meaningful to the business. For lead generation, connect enquiries to quality feedback where possible. For sales campaigns, define the revenue or conversion measure and its limitations.
Avoid a reporting arrangement that celebrates inexpensive clicks while the business struggles with irrelevant enquiries. Equally, give the agency visibility into lead quality before expecting it to optimise for information it never receives. Measurement is a shared operating responsibility.
See performance marketing services for the campaign and measurement discussion that sits alongside buying media.