Agencies that charge % of spend and also report on cost per metrics (cost per lead, sale, etc), do you include agency fee as total cost input?

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SMBs usually want this because their budget is inclusive of all fees. Larger clients usually don’t because they have separate budgets for agencies and vendors.

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I would think it would be based on client preference, but I would think no. Usually, the client wants to look at media only dollars to determine performance, IMO.

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Typically do not include agency fee. Have done so in a few cases but has always been client directive (and typically a tell they are looking at spending across the board and checking for efficiency/effectiveness overall vs just the media $). For a recommend, I would say focus on true media spend. That’s the best story and most relevant.

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Just wanted to caveat and reread this. For some reason, I jumped to fee, not commission. If you are asking about commission, we have always included it unless directed by client. So opposite of agency fee. And since I probably now sound confusing now…include commission (gross or adjusted gross) because the client is truly spending those dollars based on net media spend. That is an accurate representation. If you have a retainer/agency fee, there can be so much more that goes into that vs just an attachment to media spend. Hope that helps and didn’t cause more confusion!

Yeah, we include it. Gross media spend / actions.

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