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An advertising agency invoice is used to bill clients for managing and promoting their products or services. This type of invoice is commonly sent to a client after the services have been performed by the agency.
- Audio (radio, podcasts, etc.)
- Digital (internet, television, etc.)
- Print (newspapers, magazines, etc.)
- Visual (billboards, print outs, etc.)
How to Charge (3)
An advertising agency will commonly charge a client by flat fee ($), commission based on sales, or a percentage based on spending.
Flat Fee ($)
A flat fee agreement for an advertising agency is determined by either a fee for the entire advertising campaign or to pay an individual a rate per hour ($/hr).
According to the Bureau of Labor Statistics, the median per hour pay for a marketing manager is $65.34/hr or $135,900/yr.
Commission Based on Sales
A commission based on sales is mainly for marketers that generate leads on their own such as referrals or affiliate leads. This is usually with phone or internet marketing where the customer is able to be tracked through to the product or services for sale.
A commission based on sales ranges widely from 1% to 50% of the sale. It varies widely depending on the industry.
Percentage Based on Spending
A fee based on a percentage of the spending is common for internet and brand advertising. Depending on the marketing, an advertiser can expect to receive anywhere from 1% to 10% of the advertising spend.
Most internet marketers, mainly those affiliated with search-related advertising, can expect between 8% to 10% of the total marketing spend.