If you run Google Ads for clients, your price decides more than your income. It decides which clients say yes. It decides how much care each account gets. And it often decides whether the client is still with you after month three.
This guide is for UK agencies and freelancers setting or reviewing their prices. It covers the five fee models in use today and how to work out a number that pays you properly. It also covers what a management fee should include and how to scope an account before you quote.
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Get my plan →The Short Answer
Most UK agencies and freelancers charge in one of five ways. There's a percentage of ad spend, a flat monthly fee, an hourly or day rate, a one-off setup fee and a fee tied to results. Many combine two. The usual pairings are a setup fee plus a flat monthly fee, or a percentage with a minimum.
There's no standard rate. The right price covers your time on the account and pays for your expertise. It should still leave the client better off than running the ads themselves.
The Five Fee Models UK Agencies Use
Each model splits the risk differently between you and the client. Pick the one that matches how the work behaves on that account.
Percentage Of Ad Spend
You charge a share of what the client spends with Google each month. The range most often quoted in the UK is 10% to 20%. The percentage usually falls as budgets grow.
The appeal is simple. Your fee rises as the account grows, and more spend usually means more campaigns, search terms and tests. The weakness is that it rewards spend, not results. A client may wonder why you'd ever suggest cutting the budget.
Settle two things in writing. First, a minimum monthly fee. 15% of a £1,000 budget rarely covers the hours a new account needs. Second, what the percentage is calculated on. Google adds a 2% Digital Services Tax fee to UK ad costs. Agree whether your percentage applies before or after that fee and VAT.
Flat Monthly Fee
You charge the same amount each month for an agreed scope of work. It's the easiest model for clients to budget for. It also separates your income from their ad spend, so your budget advice looks honest.
The risk sits with you. If the scope is loose, a demanding client can take three times the hours for the same money. A flat fee only works when the scope says exactly what's included and what isn't.
Many agencies set flat fees in bands. A band might be linked to spend or to the number of campaigns. When a client moves up a band, the fee is reviewed. Nobody needs an awkward conversation.
Hourly Or Day Rate
You charge for the time you spend. It's fair for one-off work. Think audits, consultancy calls, training an in-house team or moving tracking to a new website.
For ongoing management it's a poor fit. It punishes you for getting faster. Clients watch the clock instead of the results. And you earn nothing on holiday. If you do bill hourly for management, cap the hours each month and report them. Then nobody gets a surprise invoice.
Setup Fee
This is a one-off fee for the work before the first ad runs. On a new or neglected account, it's often the heaviest month of the contract. It covers keyword and competitor research, account structure, ad copy and assets. It also covers audiences, negative keyword lists, conversion tracking, consent mode and a landing page check.
Charging for setup on its own stops the first month's fee from hiding a loss. It also filters out clients who aren't serious. Someone willing to pay for a proper build is usually willing to give the account time to work.
Taking over an existing account still needs a setup fee in most cases. An audit and clean-up of someone else's build can take longer than starting fresh.
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Performance-Based Fees
You're paid for outcomes. That might be a fee per qualified lead or a share of revenue. It might be a bonus when the account hits an agreed cost per acquisition or return on ad spend.
It sounds like the fairest model, and clients like it. In practice you take on risks you don't control. Website speed, sales follow-up, prices, stock and seasonality all affect results. None of them are in your hands. Lead quality is a constant argument too, because a form fill isn't always a real enquiry.
If you offer it, use it as a bonus on top of a base fee. Don't let it replace one. Define the result precisely. Agree where the numbers come from, ideally the client's CRM and not just the Google Ads conversion column. Then set a review date.
Which Model Suits Which Client?
| Model | Best for | Main risk for you |
|---|---|---|
| Percentage of spend | Growing accounts with rising budgets | Underpaid on small budgets without a minimum |
| Flat monthly fee | Stable budgets and a clear scope | Scope creep eats your margin |
| Hourly or day rate | Audits, training and one-off projects | Capped income, clock-watching clients |
| Setup fee | New builds and account takeovers | Under-quoting a messy account |
| Performance-based | Clean tracking and a strong sales process | Unpaid for things you don't control |
Two pairings work well. One is a setup fee plus a flat monthly fee with spend bands. The other is a percentage of spend with a minimum monthly fee. Both give you a floor. Both give the client a price they can predict.
How To Work Out Your Price
Start from your own costs and time, not a competitor's price list. Their overheads, experience and clients aren't yours.
- Work out your hourly rate. Add up what you need to earn in a year. Add overheads such as software, insurance, training and accounting. Divide by the hours you can actually bill. Once admin, sales and holidays come out, that's far fewer than 40 a week.
- Estimate the monthly hours for this account. Count the regular tasks. Search term reviews, negatives, bid and budget checks, ad tests, reports, calls and emails. Then add anything the client wants beyond normal management.
- Multiply, then add for expertise and risk. Hours times rate gives you the floor. Add a margin for your experience. Add more for accounts that look like hard work.
- Check it against the client's spend. If your fee is bigger than the budget, the client will struggle to see a return. Either the scope is too big or the account is too small for you right now.
Here's a worked example with made-up numbers. Say your target rate is £60 an hour and an account needs about 10 hours a month. That's a floor of £600 a month. On £3,000 of monthly spend, that equals 20%. On £10,000, it's 6%. So a flat percentage would underpay you on the small account and overpay you on the big one.
Review your prices once a year. Rates that were right when you started will be too low once you have a track record.
What To Include In A Management Fee
Spell out the work in the proposal. Clients compare quotes line by line. If your list is vague, a cheaper quote looks like the same service.
- Search term reviews and negative keywords, and how often you do them
- Bid strategy and budget management, including pacing to the monthly budget
- Ad copy testing and new ads
- Checks on automated campaigns such as Performance Max and AI Max for Search
- Conversion tracking checks, including consent mode and, where it fits, offline conversion imports
- Reporting: how often, in what format and which numbers
- Calls or meetings: how many each month and how long
- Response times for emails and urgent issues
Then list what's not included, or is charged separately. Common extras are landing page design and new campaign types added later. So are other platforms such as Microsoft Ads or Meta, and video production. Deeper work on the client's website tracking usually sits here too.
How To Scope The Work Before You Quote
Most pricing problems start with a quote written before anyone looked at the account. A short discovery call and an account review stop you under-quoting. They also stop you promising results you can't deliver.
Ask these questions first:
- What's the monthly ad budget, and who decides when it changes?
- Is there an existing account? Ask for access before you quote, so you can see the history, structure and tracking.
- What counts as a result: a call, a form, a sale or a booked job? Who checks whether the leads are any good?
- How many products, services or locations need their own campaigns?
- Is conversion tracking working, and is consent mode set up for UK visitors?
- Who owns the landing pages, and can they be changed?
- How often does the client want to hear from you, and how?
- What's been tried before, and why did it stop?
The answers tell you how many hours the account will really take. Picture broken tracking, twenty locations and a client who wants weekly calls. That's a very different job from one tidy campaign and a monthly report, even at the same spend.
Terms Worth Putting In Writing
- The client owns the account. Run campaigns in the client's own Google Ads account, linked to your manager account. Their card or invoicing goes on it. Never put a client's ad spend on your own card. If they don't pay, you carry the cost.
- Fees and ad spend stay separate. The client pays Google directly and pays you for management. Both numbers stay visible, and nobody suspects a hidden mark-up.
- Minimum term and notice period. Most accounts need two to three months before the data supports firm decisions. A minimum term protects your setup work. A clear notice period lets either side leave cleanly.
- Payment terms. Bill management monthly, in advance. Say whether your prices include VAT.
- Price reviews. Say when the fee will be reviewed. That might be when spend moves into a new band, or once a year.
- What happens at the end. Confirm the client keeps the account, campaigns and data. Confirm you'll remove your access.
Frequently asked questions
What percentage of ad spend do Google Ads agencies charge?
The range most often quoted in the UK is 10% to 20% of monthly spend. The percentage usually falls as budgets grow. Most agencies that charge a percentage also set a minimum monthly fee, so small accounts still cover their time.
Should freelancers charge less than agencies?
Not by default. A freelancer often has lower overheads, but the client is paying for results and expertise. Price from your own costs, hours and track record, not from what agencies charge.
Should I charge a setup fee if I'm taking over an existing account?
Yes, in most cases. An audit, clean-up and tracking check on someone else's build can take as long as a new build. Look at the account before you quote, so you know how much work it needs.
Is performance-based pricing a good idea for Google Ads?
Only as a bonus on top of a base fee. And only when tracking is reliable and the result is defined in writing. Results depend on the website, the offer and the client's sales follow-up, not just the ads. A pure results fee puts risks on you that you can't control.
How often should I review my Google Ads management prices?
Review your standard rates once a year. Review each client's fee whenever their spend, campaigns or scope change. Put the review points in the contract, so the conversation is expected.
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