We are a performance-based agency, so read this with that in mind. Here is what the four common fee models reward, what should be in the contract, and when performance-based doesn’t fit.
By Victor Skretteberg, Arcads · Updated September 28, 20263 min read
With us: 5–10% of what we earn you
Over time, an agency does the most of whatever it gets paid for. That isn’t cynicism, just how incentives work. So compare what agencies make money on before you compare prices.
| Model | How the price is set | The agency earns the most when … |
|---|---|---|
| Fixed monthly fee | A fixed amount per month. Varies a lot, from a few thousand kroner for basic management to much more for large accounts. | … you stay. The results don’t affect the invoice. |
| Hourly rate | Hours spent × hourly rate | … a lot of hours are spent. |
| Percentage of ad budget | A percentage of what you spend with Google and Meta | … the budget goes up, even when it doesn’t pay off. |
| Performance-based | A share of the value the ads create (5–10% with us) | … the ads create measurable value. Otherwise it earns nothing. |
A fixed fee is the most common model, and the upside is that you know what you pay. The downside shows up after a few months. The account runs okay, no crisis, and the invoice arrives regardless. For the agency, new ads and bigger changes are a risk with no upside. That leads to accounts that run steadily for years without growing. A good agency on a fixed fee still works for results, but then it’s in spite of the model.
An hourly rate is clean when the job is well-defined, like setting up tracking or reviewing the account. For ongoing management, it rewards time spent, not impact. A percentage of budget is open about what it is: the agency gets more when you spend more. That’s fine when a bigger budget is right, and unfortunate when it isn’t, because no one in the contract benefits from saying the budget should come down.
Want to see what we would do for you? Send us your website and get a free proposal for ads and a landing page.
Get the proposal →We take a 5–10% share of what we earn you, measured in your own account. No fixed monthly fee. If you don’t earn more, you pay us nothing. You pay the ad budget directly to Google and Meta.
For it to work for us, the share needs to reach around NOK 20–30,000 a month. With a 5–10% share, that means the ads need to create somewhere between NOK 200,000 and 600,000 in value a month. That’s why we work with established businesses with a monthly ad budget of at least NOK 30,000.
The model requires three things:
The downside: performance-based agencies are picky. They lose money on clients where the math doesn’t add up, so they don’t take everyone. If you get a no, it’s usually because the ads can’t realistically create enough for your business right now.
If the business is early-stage, the budget is small, or you need help with things that don’t produce measurable numbers in the short term (brand, content, website), a fixed fee or hourly rate is more honest for both sides. Then you are buying time and expertise, and should judge it as such. Still, ask for a report that shows sales and inquiries, not just clicks.
We have ten more questions here, and they apply to us too. How our model is calculated is on the pricing page.
The numbers come from our clients' own ad accounts.
profit year over year
Google Ads in Norway, Germany and DenmarkRead the case
ROAS
From broken tracking to profitable scalingRead the case
ROAS
Meta ads, September 2026Read the case
leads in 90 days
NOK 163 per lead incl. branded searchesRead the caseBe next on the list. The proposal is free and comes with no commitment.
Campaigns, ads, landing pages and tracking. One partner, no middlemen, no freelancers to wait on.
Campaign pages for your online store and landing pages with forms for leads. Built for ad traffic, not for your website menu, and they're yours.
UGC video, statics and motion graphics. 10+ new ones a week, all made in-house.
Search, Shopping and Performance Max. Structure, negative keywords and scaling based on profitability, not clicks.
Google Ads agencyFacebook, Instagram and Snapchat, with ongoing testing of new ads every week.
Meta Ads agencyGoogle Ads, Meta Pixel and GA4 set up correctly first. Then you see every sale and every lead yourself.
Numbers you understand, every Monday. What was done, what it brought in, what we're doing next week.
You see the proposal before you've paid a single krone.
Arcads is a Norwegian performance marketing agency in Skien that runs Google Ads and Meta Ads and makes the ads itself, for clients all over Norway. We mostly work with online stores and service businesses that live on leads, often with multiple locations.
Victor is the one you meet on the first call. He builds your Google account and digs into the numbers. You get a report every Monday.
Victor on LinkedIn
Jona makes the ads you see on this page. Videos, statics and concepts. 10+ new ones a week don't make themselves.
Jona on LinkedInWe got tired of agencies that invoice whether it works or not, so we built our own. No middlemen, no salespeople. You get us.
One partner instead of a slow agency, a freelancer you have to chase, or yet another evening in front of the ad account yourself.
| Arcads | Typical agency | Freelancer | Do it yourself | |
|---|---|---|---|---|
| Payment | 100% performance-based | Fixed fee | Hourly rate | Your own time |
| New ads | 10+ a week | A few a month | One at a time | When you find the time |
| Landing pages | Included, made by us | Extra invoice | Rarely | Your website |
| Reporting | Every Monday, numbers you understand | Quarterly report | None | You make it yourself |
| Who you talk to | Victor and Jona | Account manager | One person | No one |
| Lock-in | None | Often 6-12 months | None | None |
| Ownership | The accounts are yours | Varies | Varies | Yours |
Send us your website. You'll get a proposal for ads and a landing page by email within a couple of days.
Victor and Jona reply personally.The proposal is on its way within a couple of days. If it's urgent, email victor@arcads.no.
