Hey everybody, this is Adam with ParaCore, and we have a lot of conversations about our management fees, and if you’ve worked with the traditional agency in the past, you might be used to something like a percentage of ad spender base, plus a percentage of ad spend, and we don’t do that. We just do a fixed management fee based on spend tiers.
So it looks like, for example, if you’re spending up to $10,000 per month at ad spend, you’re gonna get one fixed fee. And the main reason we do that is because, when we’re working with you as a client, you might have hired us to do ad words primarily, okay? And so, we’re working on ad words, and we’re optimizing that campaign, and then, a month later, we say, “You know what? “We should really be taking all this traffic “going into ad words as phase two of our campaign strategy, “we want to re-target in Facebook.”
And historically, if you wanted to move into Facebook, we would say, “Well, it’s gonna be, or before we did this, “hey, it’s gonna be an extra three or four, “five hundred dollars per month, “and then your ad spend’s gonna be five hundred per month.” And it’s like, well, the management fee’s five hundred, the ad spend’s five hundred. Those rates, that’s like one hundred percent ratio. It just didn’t feel good.
And then, we’d want to try a lot of new things. So we might want to try Pinterest. Or we might want to try Spotify ads. We might want to try this or that, and we’d always be talking about these little nickel and dime sort of fees. And so we knew that those things were in the best interest of you as our client, and so what we wanted to do is we wanted to remove all of that friction that we thought was really important when building a paid media campaign because there’s re-targeting funnels, there’s lead forms, there’s YouTube ads, there’s Pinterest, there’s Spotify, there’s all these different advertising avenues.
And so, as an account manager, when your campaign is running and we think, “Hey, we should really try this for your campaign,” we want to be able to execute on that, even if it’s, actually, especially if it’s not a high ad spend sort of strategy. So, we do that through one fixed fee per month up to a certain ad spend, and then the tiers, you know, the ad spend adjusts, basically based on your ad spend. So, we do get a lot of questions about why we do the fixed fee model, and that’s why.
So if you were wondering about that, that’s really the logic and the reason behind it. There’s some other minor things that it’s helped with, as well, but that’s really the main one. We want to have your best interest in mind, and remove the friction of nickel and diming or constantly talking about additional fees because we don’t like that. Nobody likes that. So if you have any other questions, let me know. If this is an ad, you can comment below. If it’s a YouTube video, you obviously comment, as well. Like it or share it, and again, my name’s Adam with ParaCore, and thanks for watching. Let me know if you have any questions.
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