Neither model is always better. A flat monthly fee keeps the manager's pay steady whatever you spend, so there is no built-in reason to push your budget up. A percentage of ad spend grows with the account, so it can pay for the extra work larger budgets need, but it also rewards spending more. Many managers use a mix: a flat minimum, or a percentage above a certain spend. What matters most is that you understand the model and ask how it shapes the advice you get.
Here is how each one works, where each one fits, and the questions to ask before you sign.
First, separate the two costs
When you pay for Google Ads help, there are two different amounts:
- Ad spend: the money Google charges for clicks or other results. This should go from your card or bank straight to Google, in an account you own.
- The management fee: what you pay the person or agency for running the account.
If a quote bundles these together, ask for them to be split. You should always be able to see exactly what Google charged and exactly what the manager charged. If an agency pays Google on your behalf and invoices you one combined figure, make sure you can still see Google's own billing.
Model 1: Flat monthly fee
You pay the same management fee each month, whatever your ad spend.
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What it does to incentives: The manager earns the same whether your budget goes up or down. That removes one reason to recommend spending more. It also means they need to manage their time well, because a busier month does not pay them more.
Where it fits: Small and medium accounts with a fairly stable budget. Owners who want a predictable cost.
What to watch for: A flat fee can quietly assume a certain amount of work. If your account grows to several times its original size, the fee may no longer cover the time it needs, and attention can slip. Agree what is included, such as campaigns, reports and calls, and when the fee would be reviewed.
Model 2: Percentage of ad spend
You pay a set percentage of what you spend on ads each month.
What it does to incentives: The manager earns more when you spend more. That does not make them dishonest, and larger budgets often do need more work. But it does mean advice to raise the budget deserves a clear reason, backed by what the extra spend is likely to bring in.
Where it fits: Larger accounts, or accounts where the budget changes a lot from month to month, where the work genuinely grows with spend.
What to watch for: On small budgets, a percentage can produce a fee too low to cover proper work, which is why many percentage arrangements have a minimum. On large budgets, the fee can grow faster than the work. Ask what the percentage is, whether there is a minimum, and whether it falls as spend rises.
Model 3: A mix of the two
Many managers combine the models. Common shapes include:
- A flat fee up to a certain spend, then a percentage above it
- A minimum monthly fee, or a percentage of spend, whichever is higher
- A setup fee, then a flat or percentage monthly fee
A mix can be fair to both sides: the flat part covers the basic work on small accounts, and the percentage part covers the extra work on large ones. It is also more complicated, so ask for a worked example at your current budget and at double it.
To be open about our own pricing: SeenSilver's monthly packages are a flat price, and our standalone Google Ads management uses a mix, a flat monthly minimum or a percentage of ad spend, whichever is higher. The details are on the packages page.
What about paying for results?
Some providers offer to charge per lead or per booking. It sounds fair, but it brings its own questions. Who decides what counts as a lead? What happens to leads that never answer the phone? Does the provider control the tracking? If you consider this model, make sure you can see the same data the provider uses to bill you, and that a "lead" means a real person who got in touch.
Questions to ask whatever the model
- Does the ad spend go straight to Google, from an account I own?
- What exactly does the fee include each month?
- Is there a setup fee, a minimum term or a notice period?
- If my budget doubled, what would the fee be?
- If my budget halved, what would the fee be?
- When would the fee be reviewed, and how?
- What will the monthly report tell me about enquiries and bookings?
For more on what a good manager should be able to tell you, see Is your Google Ads agency worth it? 8 questions to ask.
Comparing quotes fairly
When you have two or three quotes, line them up on the same budget and the same scope. A lower fee that leaves out tracking setup, search terms reviews or reporting is not cheaper in practice. A higher fee that includes landing page advice and a monthly call may be better value, or may include things you do not need.
Ask each provider what they would do in the first month. The answers often tell you more than the price.
A short checklist
- ☐ Ad spend and management fee shown separately
- ☐ Account owned by me, billed to me
- ☐ Pricing model understood: flat, percentage or mix
- ☐ Fee worked out at my current budget, double and half
- ☐ Inclusions written down
- ☐ Setup fees, minimum terms and notice periods known
- ☐ Report contents agreed
Frequently asked questions
What is a normal percentage for Google Ads management?
Fees vary widely by country, market and the size of the account, and we would rather not quote a "normal" figure without a reliable source. Get two or three quotes for the same scope and compare them side by side.
Is a flat fee always more honest?
No. A flat fee removes one incentive, but it does not guarantee good work. A percentage manager can give very careful advice about budget. The model matters less than whether the manager explains their recommendations clearly.
Should I avoid long contracts?
Not always. Ads need time for data to build up, so a short minimum term can be reasonable. Make sure you know the length, the notice period and what happens to your account if you leave.
Want a second opinion?
If you are comparing quotes and would like an outside view of your current setup, SeenSilver's free website review is a one-page review of your website and how you show up on Google, written in plain words, with no obligation. You can get your free review here.
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