Agency margins are your cut of an end-user’s advertising spend. This amount is determined by your contract or agreement with your client—typically it’s between 5% and 20% of the total ad spend.
When setting your campaign budget, list the full amount of the ad spend, inclusive of your margin or commission. Then, toggle the “agency margin” indicator on and add your percentage. The platform will do the math for you, only charging you for the portion of the spend you intend to actually place in digital ads.
For example, a $10,000 gross advertising budget with a 15% margin means that the agency is making $1,500 and placing $8,500 in advertising. This most likely means the end-client has paid the agency $10,000 with an understanding 15% is retained as commission. In this case, we would display a $10,000 campaign budget but only charge you $8,500--keeping your $1,500 commission in your pocket.
Please note: We do not pay this margin out to you after the fact. We simply reduce the amount billed during the campaign pre-pay and continue to show you all analytics and campaign statistics as if the client had actually spent $10,000. The true amount spent in the platform will be $8,500.
A couple of final notes on Agency Margins:
Please remember that, as a tiered Agency Partner, you already earn dividends on qualified ad spend in the platform. These dividends are based on the actual amount of dollars paid to us, not the pre-margin budget. That means you'll earn more of a dividend when the agency margin taken is less...and your clients will be happier because more of their budget went to actual ad spend!
We have implemented a reasonable 40% cap on margins. Please note that average agency margins are often between 5% and 20%. It is very rare for them to exceed 30%.
If we encounter egregious margins being taken by our Agency Partners, we reserve the right to review and/or revoke your partnership status with us at any time.