The percentage of ad spend model. This is a pretty standard model with many advertising agencies out there where you get paid 10% or 15% or 20% or whatever you and the client agree on.

Based on their ad spend, though the percentage typically decreases the higher the ad spend of the client is.

This can work well later down the road when you’re working with clients who are spending $20,000 to $100,000 dollars a month on ads.

But it’s terrible if you’re just getting started and the client’s only spending $300 a month on a small ad campaign. After all, 20% of $300 is 60 bucks, which ain’t a while lot of money for what is likely going to be a decent amount of work.
#advertising #adspend #paymentmodel #shorts