Why You Should NEVER Charge Ad Spend & A Rant On Streamlining
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- Опубліковано 4 тра 2019
- Why you should never charge ad spend.
One of the most common questions I get asked - full stop - is whether you should include ad spend in a client’s monthly retainer.
The answer is an unequivocal, categorical, indisputable, NO.
Never.
No exceptions.
Here’s why:
When you start to take in money that’s not yours (not your service fee) - but someone else’s (Facebook), you can never discern between the two in your bank account. It’s a logistical nightmare.
Then you get on to cashflow - when does the money come in? When does your client pay? What happens if you overspend? What happens if you underspend?
What if, one month, it’s completely redundant spending the full amount you’ve invoiced for because of issues with the back end, and you end up having to return the money - or hold onto it?
One of the very worst mistakes I consistently see people making is charging a flat fee - and then deducting variable amounts of ad spend from this.
That’s insanity. One of the major benefits of owning an agency is that you have a reliable monthly income - this messes with this.
All of this is indicative of an agency that’s unable to scale.
It’s weighed down by complexity, offering way too many services
The key to scaling your agency is simplicity.
Strip down your agency, then scale it.
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That shirt looks clean 👌🏻 where is it from?
Absolute gold. Another Gem Iman!
Great Iman! I'm starting off with my agency and just landed a client. That ad spend issue had been bothering me a lot. I've prepared the client ROI formula and had a time figuring out how I should receive payments: one bundle or separately. Now it's cleared off. Having a cool head knowing that my service fee remains the same every month is KEY for me. Thanks! 🔑🤑
How is your agency doing?
@@asmababker7264 also curious
How's going man
hows it going?? please we need to know
Great clarification iman. Great content as well. Liked.
Systems and automation! Great value as always.
Holy moly thanks for this information. Saving me mistakes
A lot of sauce here damn!! It would be incredible if Iman continued uploading videos of this type, more specific ones.
I always asked everybody about that fucking adspend into the retainer question thanks for this video Iman.
How is your agency going, man?
So close to 100k bro
Harshal Chavan I noticed that the other day 😂 I’m excited to see him hit it
Almost 3m lol
Thank you bro!
Very smart and adept guy
i love seeing the old unfiltered iman
Same here
love you IMAN!
SO much value
271 / 456
→ nightmare to cashflow in terms of what is my money and what's the clients money
→ always separate those two because of complexity
→ the more layers of complexity you make, the harder is it to scale
→ Have super streamlined processes!!! Takes joy into business
→ Have one clear form of communication with customers
How do you work with a chain, ie a an anytime fitness gym, because they’re separately owned, but same website for them all, but they have their own Facebook and instagram etc, I’m learning
amazing content
The bottom line is K.I.S.S. (Keep It Simple Stupid). I liked this rant.
what about when the clients ask how much they should spend on there ads ? What is the equation or thought to answering that ?
Just get one LLC and use multiple DBAs
I'm just starting out. So would adspend come out of my pocket? I may have misheard. But am I charging them before they get the service or after?
I believe he is saying just use their card and charge ad spend directly to their card. Don't put it into your bundle, or charge it separately to you.
@@joshuasword1222 Their credit card? So that would technically come out of their pocket. Just keeping it seperate from my bank. Ok I think I get it now. Thanks
@Chris M that's what I was thinking you should do
...but the points!
wanted to buys the course, went to the homepage, only free training xD where is the course!!:D
Hey Jakob, email support@growyouragency.com - we'll sort you out!
Where can I get inspirations for my ads for my agency? Do you have some tips for me?
Hire an ad specialists
I'm confused why wasn't this stuff in any of the SMMA courses
I cover it in detail within Agency Incubator :)
@@ImanGadzhi cot dammit *insert here we go again meme"
how much monthly ad spend would you recommend for local gyms or local businesses in general ?
$600 per month is a great starting point for a local business
@@ImanGadzhi if a client is paying 1200, how much would you allocate towards ad spend?
@@ImanGadzhi if I have a media buyer I need to pay $500 I'm making 100usd profit ?
@@AZANlA no no. What he's talking about is the *adspend*, not the service fee. They're separate, the service fee should cost at least $1000 and you pay your media buyer from the service fee. The adspend of $600 per month is only allocated to the ads
Can you share where you found your ad specialist?
It was a recommendation from a friend
Did anybody get this?
bkona345 I think what he’s saying is just charge them one fee, instead of charging two separate fees because then every month you’re getting paid different amounts depending on what you’re spending for ads
3:23
Here he gives the answer.
Yes. Simply just have the adspend come out of the clients pocket and put in their card details in the ad account. That way you dont have them pay you for the ad spend
Can I win a giveaway on here or something
But we run ad spend through ourselves to get hella points on our cards
yup
Wow true😆
Si you make them pay the adspend
Zakaria yes, don’t charge them separate bundles, just charge them a full fee
Is any tutorial on how to set up that ads spent to go to the client account step by step?
Thanks in advance
ericwagnerco yes Jordan Platten has a video on it I can’t remember what it’s called though
@@sammoore5786 thanks man
Sounds like you need to up your accounting game…
What if you have two bank accounts so you have one bank account for your own money and one for the business ?
This can work aswell
It can work but then you'd end up doing what he said was not efficient. Even though you have a business bank account, the money in it should ideally all be your profit so you know what money belongs to your business. Not your profit anddd the ad spend. It'd just be quite messy to book keep
Who's watching this in 2023??
I am bc I’m confused about this
@@diversifiedak same bruh. why would someone pay me a monthly fee AND pay for all the ads. What would they even need me for then? lmao
@@billyrhodes_that’s the point of an smma. Most businesses don’t know how to run professional Facebook ads or do SEO or do the little things to have a popular/seen business. Just better make sure you bring in a very good ROI lol
Hi bro❤
million dollar videos
you just talking to have some content