Free Agency Pricing Calculator
Welcome to the M10N Agency Pricing Calculator. This tool is designed to help business owners decide whether to hire a marketing agency on a media commission basis or via a fixed agency fee. By inputting key basic financial metrics, you can quickly compare costs and determine which model aligns best with your budget and business objectives.
How to Use the Calculator
Step 1: Access the Calculator
Access the calculator above above or using this link: Agency Pricing Calculator
Step 2: Input Your Data
The calculator requires you to enter several key data points:
1. Monthly Media Spend (£)
Enter the total amount you expect to spend on media advertising per month (e.g., Google Ads, Facebook Ads, LinkedIn Ads, etc.).
2. Agency Fee (£)
If you are considering a fixed agency fee model, enter the monthly retainer amount the agency is charging.
3. Media Commission Rate (%)
If you are considering a commission-based model, enter the percentage the agency will charge as a commission on your media spend (e.g., 15%).
Step 3: View Your Results
Once you've entered your data, the calculator will generate a comparison between the two pricing models:
Total Cost of Agency Fee Model (£) – Displays the total cost of hiring an agency on a fixed-fee basis.
Total Cost of Media Commission Model (£) – Displays the total cost of hiring an agency based on a commission percentage.
Cost Difference (£) – Shows the cost variance between the two models, helping you assess which one is more financially viable.
Step 4: Interpret the Results
If the agency fee model is cheaper, it means you may benefit from a predictable, fixed-cost arrangement.
If the commission model is cheaper, it may be a better choice if your media spend is low or fluctuates frequently.
Consider factors beyond cost, such as agency expertise, performance incentives, and flexibility.
Agency Commission vs. Day Rate Model
When choosing an agency pricing structure, it’s important to understand the differences between the commission-based model and the day rate model:
Agency Commission Model
The agency charges a percentage of your total media spend (e.g., 10-20%).
This model aligns agency incentives with campaign performance.
Can be cost-effective if media spend is relatively low.
Costs may increase significantly with high ad spend.
Day Rate Model
The agency charges a daily rate for their time and expertise.
Fixed cost per day regardless of media spend.
Provides greater transparency on work effort.
Can be more predictable for budgeting but may not be aligned with performance incentives.
Choosing between these models depends on your budget, campaign complexity, and desired level of flexibility.
FAQs
Q1: What if my media spend changes monthly?
If your media budget varies significantly, you can re-enter different values into the calculator to see how the costs shift.
Q2: What if an agency charges a hybrid model (fee + commission)?
In this case, enter the fixed agency fee and adjust the media commission percentage accordingly to reflect both costs.
Q3: How do I decide which model is best for me?
Use the calculator results as a guide, but also consider:
Predictability of costs (fixed fees may be better for budgeting)
Incentive structures (commission models align agency success with ad performance)
Additional services included in the fee
Conclusion
The Agency Pricing Calculator provides a simple yet powerful way to compare agency pricing models. By using this tool, you can make an informed decision on whether a fixed agency fee, media commission model, or day rate model is best suited for your business.
If you have any questions or would like to discuss how to approach agency selection and fees you can book in a call here