Ad agency cost calculator
What does an agency actually cost to run your ads? Compare a retainer plus a percentage of spend against a flat monthly fee. Move the sliders to match your numbers.
A percentage fee grows every time your ads succeed and you scale up. A flat fee is yours to keep. Mebume is $499/mo per business, at every spend level. Creative is usually billed separately by an agency, so the real gap can be wider still.
The three ways an ad agency charges
Percentage of ad spend. The most common agency model, usually 10 to 20 percent of managed spend, often on top of a retainer. Simple to start, but the fee grows every month your budget does, so scaling up quietly raises your management cost.
Monthly retainer. A fixed amount for a set scope, commonly $1,000 to $5,000. Predictable, but often tied to hours, and rates climb as your account gets more complex.
Flat software fee. A tool that runs the buying for one price regardless of spend. This is how Mebume is priced: $499/mo per business, with no retainer and no percentage of your ad spend.
Common questions
Most agencies charge a monthly retainer plus a percentage of your ad spend, commonly a $1,000 to $5,000 retainer and 10 to 20 percent of spend, so the total scales with your budget. A flat-fee tool like Mebume charges the same amount every month regardless of spend ($499/mo per business).
Most sit between 10 and 20 percent of managed ad spend, with 15 percent a common midpoint, usually on top of a monthly retainer. At $20,000/mo in spend, a 15 percent fee is $3,000/mo just for the percentage, before the retainer or the spend itself.
Once you factor in the retainer, almost always. Move the sliders above to see the difference at your spend. A flat fee stays the same as you scale, while a retainer plus a percentage grows with your budget.
Related reading: flat fee vs percentage pricing and how much ad management costs.