Whether you’ve worked with an agency before or it’s your first time, understanding your contract can be confusing—especially when it comes to the billing process.
Fortunately, our billing is simple and straightforward. And in this article, we’ll show you how it works, help alleviate any confusion, and set expectations so you can manage your budget and payment a whole lot easier.
Getting Started: Initial Invoice & Campaign Creation
For all new accounts, we configure all settings and complete the account build based on the data you provide us. This is called a “campaign creation.”
Upon the effective date of the paid advertising management agreement, we’ll send the first invoice that will cover the first month of work which will contain account setup, campaign build, and potentially campaign launch depending on any potential setup hurdles. .
This initial invoice amount is dependent on two things:
- Your Starting Budget
- Pricing Tier
For Example: If you have an initial ad budget of $15,000, you would fall into the first pricing tier, so your initial invoice amount would be $1,500.
What Happens During Month 2 and Beyond?
Once the campaign is created and all set up, it’s time to manage and optimize.
This means we’ll do all the account optimizations needed to improve the performance of your account, including:
- Bid Management
- Strategy Optimization
- Keyword Expansion and Negation
- Supplementary Campaign Creation
- Weekly Performance Updates
- And other relevant optimizations according to your optimization schedule based on your account’s ad budget.
This is all part of our management process.
30 days after the initial invoice, we’ll send out an invoice every 30 days based on the monthly management fee plus the agreed percentage of the approved ad budget.
How Your Ad Percentage Fee is Calculated
The amount you are billed for your ad spend percentage is determined again by this chart:
The above chart works much in the same way as tax brackets, where the amount of ad budget for each tier is calculated at different percentages.
For example: If you have an ad budget of $150,000, your first $50,000 would be billed at a 10% rate, then your next $50,000 at an 8%, and then the final $50,000 at a 6% rate.
To make this easy on you, we have a calculator HERE that will tell you exactly what your monthly invoice will be depending on your chosen ad spend budget. The “Total Fee w/ Base” number will be your final invoiced amount each month.
IF we can include the actual calculator directly into this section, that would be ideal