Trades marketing pricing models explained
Agencies in this directory charge in at least six different ways. The number on the invoice matters less than the model behind it, because the model decides what the agency is paid to do. This guide sets out each model, its incentives, its hidden costs and the questions it raises.
Why the model matters more than the number
A £500 fixed fee and a £500 percentage-of-spend fee look identical this month. Next month they behave differently. The fixed fee stays at £500 whatever you spend. The percentage fee grows every time the agency persuades you to increase the ad budget.
Every model pays the agency for something. Work out what, and you know what they will push you towards.
Model 1: fixed monthly fee
One price, every month, for a defined set of services. Examples in this directory range from £30 a month for a basic pay-monthly website to £299 + VAT for a website and local SEO system, up to several hundred pounds for managed advertising.
The agency is paid to keep you as a client. Its incentive is retention, which usually means doing enough to stop you leaving. The risk is the opposite: a fixed fee can also pay an agency to do the minimum once the setup work is done.
Questions to ask: what exactly is included, what counts as extra, and is there a setup fee or minimum term hiding behind the headline figure? Our round-up of the cheapest fixed-fee trades agencies lists who publishes a figure.
Model 2: monthly retainer, priced by scope
Also a monthly fee, but set per client after a scoping conversation rather than published. Most full-service agencies work this way. Fees in this directory go from a few hundred pounds a month to £25,000 + VAT for an embedded senior team.
The incentive is similar to a fixed fee with one difference: because the price is bespoke, it tends to drift upwards as scope is added. Get the scope in writing and agree what triggers a price change.
Model 3: percentage of ad spend
The agency takes a cut of what you spend on Google or Meta, typically on top of a minimum fee. Spend £2,000, pay £300. Spend £4,000, pay £600.
The incentive is to grow your ad budget. Sometimes that is right. Often it is not, especially for a small firm whose capacity is capped by how many jobs it can do. Several agencies in this directory state explicitly that they do not charge a percentage of spend. Treat that as a point in their favour.
Model 4: pay per lead
You pay a set amount for each enquiry delivered. The agency is paid for volume. Quality is your problem unless the agreement defines what counts as a lead and provides a route to reject bad ones.
Two further questions. Are leads exclusive to you, or sold to several firms at once? And does the agency own the website and phone number the leads come through, so that your presence vanishes when you stop paying? Some agencies, such as Trustmark Trades, state that they do not charge per lead or share enquiries. Ask any pay-per-lead provider the same questions.
Model 5: one-off project fee
Mainly for websites. You pay once, you own the site. Published examples in this directory run from £295 to £995 including VAT for a fixed-price trade website, with optional monthly hosting afterwards.
The incentive is to finish the project and move on. That is fine for a website. It is a poor fit for anything that needs ongoing work, such as SEO or advertising. Our comparison of pay-monthly and upfront trades website companies weighs this model against renting a site.
Model 6: performance guarantee
A fee that is waived or refunded if an agreed result is not met in a set period. ServiceLeads, for example, guarantees a set number of qualified enquiries in 30 days or no management fee. Nivoro Marketing attaches a performance-or-you-don't-pay promise to its retainers.
The incentive is to hit the measurable target. Read the definition of the target. 'Qualified enquiry' can mean many things. Also check what ad budget the guarantee assumes and whether the guarantee applies only to the first period.
Side-by-side
| Model | Agency is paid for | Watch for |
|---|---|---|
| Fixed fee | Keeping you as a client | Minimum effort after setup; setup fees |
| Scoped retainer | Scope delivered | Scope creep raising the price |
| Percentage of spend | Growing your ad budget | Pressure to spend beyond capacity |
| Pay per lead | Lead volume | Shared leads; agency owns the assets |
| One-off project | Finishing the job | No incentive for ongoing work |
| Performance guarantee | Hitting the defined target | Loose definitions; first period only |
Hidden costs common to all models
- Ad spend. Almost always paid separately, direct to the platform. A £750 fee with £1,500 of ad spend is a £2,250 a month commitment.
- Software. CRMs, call tracking numbers, email tools and hosting may be billed on top.
- Setup fees. Sometimes labelled onboarding, build or strategy.
- Exit costs. Losing a website, phone number or ad account you never owned.
- VAT. Published prices are quoted both with and without it. Check which.
A worked example at three budgets
The figures below are illustrative, not any agency's results. They show how total cost and risk differ by model for a two-person electrical firm.
At £300 a month total, the realistic options are a fixed-fee website and local SEO system, or a pay-monthly website with the owner doing their own Google Business Profile work. No room for meaningful ad spend.
At £1,000 a month total, a managed Google Ads or Meta account becomes possible: perhaps £400 in fees and £600 in spend. At that spend level, a percentage-of-spend model and a fixed fee cost about the same, so the fixed fee is preferable for predictability.
At £3,000 a month total, the percentage model starts to bite. A 15 per cent cut of £2,400 spend is £360 a month and rising. A fixed fee at the same service level caps that. This is also the budget at which a performance guarantee becomes worth negotiating, because the agency has enough spend to work with.
Choosing
Small firm, limited budget, no urgency: fixed fee or one-off website. Firm with ad budget and capacity to grow: scoped retainer or fixed fee, never percentage of spend. Firm needing quick volume and able to vet quality: pay per lead, with exclusivity and asset ownership in writing. Larger firm: retainer, with a performance clause.
Whatever the model, our guide to contracts and notice periods covers the terms that sit around the price.
Frequently asked questions
Is a fixed fee always better than a percentage of ad spend?
For small trades firms, usually yes. A percentage model pays the agency to grow your budget, which may not match your capacity to take on work.
What should I ask a pay-per-lead agency?
Whether leads are exclusive, what counts as a lead, how bad leads are rejected and who owns the website and phone number the leads arrive through.
Are published prices inclusive of VAT?
Not consistently. Some agencies quote plus VAT, some inclusive. Check before comparing.
Do I pay ad spend to the agency?
Most agencies in this directory have you pay the platform directly. If an agency wants spend paid through them, ask for a breakdown of fee versus spend.