Most agencies are incentivized to grow your spend, not your bottom line
By Carl Jouffroy ·
Most e-commerce agencies are incentivized to grow your spend, not your bottom line. If you are a CFO or CEO of a $20M–$100M brand, you've likely felt the friction. You want to maximize profit.
The problem with % of spend
Standard % of spend models penalize scaling and efficiency. Management fees typically float between 15% and 25% of media, with hidden cost floors that disconnect agency effort from merchant profit.
A fee that follows your margin
AGM-linked billing charges a share of Ads Gross Margin (Attributed Revenue − Ad Spend). The more margin you generate, the lower the effective percentage — full alignment.
This article is general information, not legal advice. For advice about your situation, contact the firm.