Common pricing models

  • Monthly retainer: recurring scope such as campaign management, social management or ongoing strategy.
  • Project fee: a defined deliverable such as brand strategy, a website, an audit or a launch campaign.
  • Percentage of media spend: the fee scales with advertising investment; evaluate minimums and what is included.
  • Hybrid: a base retainer plus a spend-based or performance-related component.
  • Hourly or day rate: useful for consulting or uncertain scope, but requires clear governance.
  • Performance-linked fee: can align incentives, but only when attribution, margins, lead quality and sales responsibility are defined.

What should be separated in a proposal

  • Agency or service fee.
  • Advertising media spend paid to platforms.
  • Creative production and asset costs.
  • Website and landing-page development.
  • Tracking, analytics and consent tooling.
  • Third-party software.
  • Influencer, media and production costs.
  • VAT and other applicable taxes.

How to compare two agencies

Do not compare only the headline monthly fee. Compare senior involvement, scope, number of channels, creative volume, reporting depth, tracking responsibility, landing-page work, meeting cadence, ownership of accounts and assets, and termination terms.

A cheaper proposal can be more expensive if essential work is excluded. A more expensive proposal can still be poor value if it adds activity without a clear commercial objective.

Questions to ask before signing

  • Who will actually work on the account?
  • Who owns the ad accounts, analytics and creative files?
  • What is included and explicitly excluded?
  • How are conversion events defined?
  • How often is budget reallocated?
  • What happens when tracking breaks?
  • What does success mean beyond clicks and impressions?
  • What is the notice period?
  • Are platform and media costs separate?
  • Can the agency explain the strategy in plain language?

Northstar perspective

The goal of procurement should not be to find the lowest agency price. It should be to buy the clearest system for turning a defined budget into learning and commercial outcomes while retaining control of business assets.