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.
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.
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.
Three clients, before and after. The numbers come from our clients’ own ad accounts.
See also: Google Ads agency · Meta Ads agency · Performance marketing agency · What is UGC? · Google Ads agency Oslo
Send us your website and we’ll put together a concrete proposal for ads and a landing page for your business, the way it would look with your brand. You’ll get it by email within a couple of days, and it’s yours to keep either way.
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