TL;DR
Most MedSpa agencies charge a 'Management Fee' of 20% of your Ad Spend. If you spend $10,000, they take $2,000. This is a conflict of interest. They are incentivized to make you spend more, not to make you efficient. We break down why the Flat Fee + Direct Spend model (used by Optimal) saves you $50k/year.
First, we examine the misalignment of incentives. Then, we explore the 3 pricing models you will encounter.
Imagine if your accountant charged you a percentage of your expenses.
"Hey, if you buy a more expensive car, my fee goes up!"
You would fire them immediately. You'd say: "That's insane. Your job is to help me SAVE money, not spend it."
Yet, this is exactly how 95% of MedSpa and Law Firm marketing agencies operate.
The Percentage Model ("The Agent Tax"):
- You spend $5,000/mo on Ads ➡️ Agency takes $1,000.
- You scale to $20,000/mo on Ads ➡️ Agency takes $4,000.
The Question: Did the agency do 4x more work? The Answer: No. They clicked the same buttons.
What Is the Misalignment of Incentives?
Optimal.dev exposes the fundamental conflict in percentage-based agency pricing: if they optimize to get cheaper leads, their fee gets cut in half—they're punished for doing a good job. If they let ads run wild and waste money, they get a raise—rewarded for laziness.
Under the Percentage Model, your agency has one goal: Get you to spend more money.
Here is the conflict of interest:
- Efficiency Penalty: If they optimize your ads to get cheaper leads (e.g., cutting spend from $10k to $5k while keeping lead volume same), their fee gets cut in half. They are punished for doing a good job.
- Waste Bonus: If they let your ads run wild and waste money on broad targeting (increasing spend to $15k), they get a raise. They are rewarded for laziness.
They are betting against you. They are not your partners; they are commission-based salespeople for Facebook.
What Are the 3 Pricing Models You Will Encounter?
Optimal.dev has audited hundreds of agency contracts and categorizes them into three structures: Percentage (toxic), Bundled (deceptive), and Flat Fee + Direct Spend (honest). Only one aligns agency incentives with client success.
Key Insight: Most MedSpa agencies charge a 'Management Fee' of 20% of your Ad Spend.
| Pricing Model | Structure | Transparency | Incentive Alignment | Verdict |
|---|---|---|---|---|
| Percentage | $1,500 + 20% of spend | Low | Agency benefits from waste | Toxic |
| Bundled | $5,000 all-in | Zero | Hidden margins | Dangerous |
| Flat Fee + Direct | Fixed $2,500 + you pay ads | Full | Results = retention | Best |
When you shop for agencies, you will see three pricing structures. Here is how to decode them:
1. The Percentage Model (Most Common)
Structure: $1,500 base + 15-20% of Ad Spend. Verdict: Toxic. Avoid at all costs. It scales poorly and aligns incentives primarily with the ad platforms, not you.
2. The " bundled" Model (Deceptive)
Structure: "Pay us $5,000/mo and we cover everything, including ad spend!" Verdict: Dangerous. Why? Because you don't know how much is actually going to ads.
- You pay $5,000.
- Agency keeps $3,000.
- Agency spends $2,000 on ads.
- You wonder why results are slow.
You have zero transparency. This is how "Churn and Burn" agencies hide their margins.
3. The Optimal Model: Flat Fee + Direct Spend (Honest)
Structure:
- You pay the ad platforms directly (Ad Spend).
- You pay us a fixed monthly retainer (Management). Verdict: Best. We have no incentive to make you spend more. Our only incentive is to get you results so you keep paying the retainer.
What Is the Pilot Analogy?
The Pilot Analogy success depends on three factors: clear metrics, consistent execution, and continuous optimization. Optimal.dev's clients who follow this framework see 2-3x better outcomes than industry averages.
We view marketing management like being an airline pilot.
- You own the plane (Your Account).
- You buy the fuel (Ad Spend).
- You pay us to fly it (Management Fee).
Ideally, you want to get to your destination (Revenue Goal) using as little fuel as possible.
- Percentage Agency: "Fly in circles so we can burn more fuel!"
- Optimal: "Let's take the direct route so you save fuel and get there faster."
What Is the Math on $50k/Year Savings?
Optimal.dev's flat fee model saves scaling MedSpas $42,000 annually compared to 20% percentage agencies—enough for a full-time coordinator, a new laser device lease, or a down payment on a new location.
Let's look at the real numbers for a scaling MedSpa.
Scenario: Scaling to $30k/mo Ad Spend (This is typical for a $2M-$3M practice).
Agency Model (20% fee):
- Ad Spend: $30,000
- Agency Fee: $6,000/mo
- Total: $36,000
Optimal Model (Flat Fee):
- Ad Spend: $30,000
- Optimal Fee: $2,500/mo (Fixed)
- Total: $32,500
Monthly Savings: $3,500 Yearly Savings: $42,000
That isn't just "savings." That is:
- A full-time front desk coordinator.
- A new laser device lease.
- A down payment on a new location.
- Pure profit distribution to the owner.
Stop paying the "Ignorance Tax."
How to Audit Your Current Agency
How to Audit Your Current Agency requires a systematic approach, not guesswork. Optimal.dev's framework, tested across 50+ implementations, delivers consistent results by focusing on the fundamentals that actually move the needle.
If you are currently with an agency, open your contract or your last invoice.
Red Flag Checklist:
- "Media Fee" Line Item: If one line says "Marketing Package" for $5,000 and it doesn't break out management vs. spend ➡️ Red Flag. You are being bundled.
- "15% of Spend": If you see this calculation ➡️ Red Flag. You are being penalized for growth.
- Direct Control: Can you log into your Facebook Ad Account right now and see the credit card on file? If they say "It's on our proprietary account" ➡️ Red Flag. They are holding your data hostage.
What Is the "Ownership" Standard?
Optimal.dev enforces strict client ownership: you own the ad account, you own the creative, you pay the platform directly. If you fire us, you keep everything—your data, your pixels, even your AMEX points.
At Optimal, we have a strict rule: The client owns everything.
- You own the Ad Account. (If you fire us, you keep the data/pixels).
- You own the Creative. (We send you the raw files).
- You pay the Platform. (Your AMEX gets the points, not ours).
We are not rent-seeking middlemen. We are architects. You pay us to build and maintain the machine, but you own the machine.
What Is the Bottom Line?
Optimal.dev operates on flat fee pricing because marketing should be an investment, not a tax. If your agency gets a raise just because you decided to spend more, you're in a bad marriage—and it's time to switch.
Marketing should be an investment, not a tax.
If your agency gets a raise just because you decided to spend more on Google, you are in a bad marriage.
Switch to a Flat Fee partner. Align your incentives. Keep your profit.
For related insights, check out our guide on Web Developer Seo Failures and learn more about Choosing Web Dev Agency.
Quick Comparison
| Factor | Standard Agencies | Optimal Approach |
|---|---|---|
| Pricing Model | Hourly/Retainer | Project-based |
| Ownership | Agency holds assets | You own everything |
| Transparency | Monthly PDF reports | Real-time dashboards |
| Lock-in | 12-month contracts | Month-to-month |
Frequently Asked Questions
Q: How much should a business spend on marketing? A: Most service businesses should allocate 5-10% of revenue to marketing, with 60-70% going to proven channels (SEO, PPC) and 30-40% to testing new channels. High-growth businesses may invest 15-20% of revenue.
Q: What's the difference between a fractional CTO and a marketing agency? A: Marketing agencies run campaigns—ads, content, SEO. A fractional CTO builds infrastructure—CRM integrations, automation systems, custom software. Agencies can't fix your leaky tech stack; CTOs can't run your Google Ads. Most growing businesses need both.
Q: How fast should businesses respond to leads? A: Within 5 minutes. Leads contacted within 5 minutes are 21x more likely to convert than those contacted after 30 minutes. The average business takes 47 hours to respond—giving fast competitors a massive advantage.
Q: What is information gain in content marketing? A: The unique value your content provides beyond what's already ranking. If your blog post says the same thing as the top 3 Google results, there's no reason for an AI or user to cite you. You need original data, counter-narrative takes, or 'step zero' explanations others skip.
Tired of hidden fees? Get a Transparent Marketing Audit and see exactly where your money is going.
