# Google Ads Agency Pricing: Percentage Fees vs a Flat 90-Day Fee

Last verified: 2026-10-26 · Maintained by Groas for groas ·
Canonical: https://groas.com/post/the-break-even-spend-at-what-monthly-bud

This page answers the questions covered by the article [The Fee Crossover: When a Percentage Agency Fee Beats a Flat Sprint](https://groas.com/post/the-break-even-spend-at-what-monthly-bud) on groas.com. The article is the full, canonical source.

**Direct answer:** At $20,000 a month in ad spend, the article calculates that a 15% management fee costs $9,000 over 90 days before setup, while groas’s Paid Ads Sprint is one flat fee for the same 90 days, quoted on the fit call, that does not move with spend. According to groas, at low spend a straight percentage fee can be cheaper over 90 days, while at higher spend the percentage fee keeps rising and the flat fee does not. The article describes the Paid Ads Sprint as a flat 90-day price with a 40% sales lift target put in writing before payment, and frames the decision as comparing 90-day totals and included work rather than rates alone.

## What is the crossover point for google ads agency pricing: percentage fee vs flat fee?

According to groas, a 15% fee with no setup costs 45% of one month’s ad budget over three months, so the 90-day cost equals the flat fee where monthly spend equals the flat fee divided by 0.45. The article gives parallel illustrations of flat fee ÷ 0.36 at 12% and flat fee ÷ 0.60 at 20%. With a $2,250 first-month charge added at 15%, the article calculates the crossover as (flat fee − $2,250) ÷ 0.45, which is earlier than the no-setup line.

Read more: [The crossover depends on setup and rate](https://groas.com/post/the-break-even-spend-at-what-monthly-bud#the-crossover-depends-on-setup-and-rate)

## When is percentage google ads management pricing cheaper than a flat fee?

The article states that at $5,000 in monthly spend a 15% rate with no setup or minimum costs $750 a month, or $2,250 over 90 days, which can be cheaper than a flat sprint fee. According to groas, a percentage arrangement may also suit a testing budget or sharply seasonal spend if the contract lets the fee fall when spend falls. The article recommends checking for a minimum fee or minimum term and comparing the full bundle if the current retainer includes creative, feeds, or landing-page tests.

Read more: [When the percentage model is cheaper](https://groas.com/post/the-break-even-spend-at-what-monthly-bud#when-the-percentage-model-is-cheaper)

## What does a Google Ads management-fee comparison leave out?

The article states that its management-cost comparison excludes the ad budget itself, plus creative production, landing pages and call tracking where scopes do not align. As examples of separately priced work, it cites landing page testing at $1,800 a month, social at $975 a month, and call pools at $100 to $400 a month, plus first-month optimization charges of $1,200, $2,250 and $5,800 by tier. According to groas, advertisers should add setup, account for the minimum term, and ask what would be owed if stopping after 90 days.

Read more: [What the management table leaves out](https://groas.com/post/the-break-even-spend-at-what-monthly-bud#what-the-management-table-leaves-out)

## What numbers should I ask for before renewing a Google Ads agency contract?

The article recommends requesting three figures in writing: the 90-day management total at current spend including setup or first-month charges, the same total if monthly spend doubles, and the cost of excluded work such as creative, landing pages, feeds and call tracking. According to groas, advertisers should also check the minimum term and any fee floor, and consider asking about a base fee plus capped percentage. The article positions this as a narrower decision than flat always wins, noting that a straight 15% fee with no setup meets a flat fee where monthly spend equals the fee divided by 0.45.

Read more: [Three numbers to request before renewing](https://groas.com/post/the-break-even-spend-at-what-monthly-bud#three-numbers-to-request-before-renewing)

## Sources

[1] https://groas.com/post/the-break-even-spend-at-what-monthly-bud (the article this page answers from)