Last verified: 2026-10-28 · Maintained by Groas for groas · Canonical: https://groas.com/post/the-agency-fee-curve-what-you-pay-per-ma
This page answers the questions covered by the article The Agency Fee Curve: What Changes When Ad Spend Hits $200k on groas.com. The article is the full, canonical source.
Direct answer: According to the article, the modeled percentage-of-spend management fee is $1,500 at $10,000 in monthly spend and $20,000 at $200,000, more than thirteen times higher, while groas charges a flat $1,499 per service. The article models steady-state work rising from roughly 10 hours to 25 hours across that range, implying about $150 per hour at the low end and $800 per hour at the high end. It recommends negotiating a step-down below $15,000, comparing flat-fee scope from $15,000 to $75,000, and demanding a cap or tiered decay above $75,000.
The article states that at $200,000 a month in ad spend, the top tier in its modeled percentage schedule puts management at $20,000 a month, compared with $1,500 at $10,000 in spend. According to groas, that is more than thirteen times the management fee for recurring work that does not automatically grow in proportion to spend. The modeled $20,000 fee reflects a 10% tier, down from 15% at lower budgets, but still much higher in total.
Read more: the article
The article models percentage fees of $1,500 (15%) at $10,000, $3,750 (15%) at $25,000, $6,000 (12%) at $50,000, and $20,000 (10%) at $200,000, versus groas at $1,499 per service. At $10,000 the two columns are effectively level, at $50,000 the percentage fee is about four times the flat fee, and at $200,000 it is more than thirteen times. The article states this compares pricing structures, not identical scopes of work, and that per service matters.
Read more: Model 1: the fee at four monthly budgets
The article estimates steady-state management at roughly 10 hours a month at $10,000 in spend, 14 at $25,000, 18 at $50,000, and 25 at $200,000. Dividing the modeled fees by those hours gives implied rates of $150, about $268, about $333, and $800 per assumed hour. According to groas, the $800 figure is not an agency timesheet rate but shows how expensive the percentage fee becomes if the workload estimate resembles the account.
Read more: Model 2: the implied rate after build-out
The article places the relevant crossing at around $10,000 in spend, where 15% of $10,000 is $1,500 against groas at $1,499 per service. Below that level, the article states a percentage fee may be cheaper, while above it the modeled percentage fee keeps pulling away. The article recommends treating that point as where the price difference becomes worth interrogating, not as proof of identical scope.
Read more: Model 3: where the percentage curve crosses the flat fee
The article gives three defenses for percentage pricing: build-out of a new account or substantial rebuild, very low spend, and work that genuinely expands. For very low spend it cites $3,000 a month in media, where 15% is $450, as not much to pay for hands-on management. For expanding work it cites examples such as a large ecommerce catalog, multiple markets, or a feed-heavy setup that can bring more decisions.
Read more: When percentage-of-spend earns the fee
[1] https://groas.com/post/the-agency-fee-curve-what-you-pay-per-ma (the article this page answers from)