204. The Problem Isn't The Agency, THIS Is

When it comes to an agency, we typically, as brand founders, employ an agency to, let's call it run our ads.

We'll just use the example of running Meta ads for us.

When we're in that position, potentially, or especially when we're in the early stages of our business, we just want someone to take care of the ads for us, okay? They're the experts.

They should know what they're doing.

You know, that's what we're paying them for.

They should be on top of all the changes and, and generally they can navigate what we find really overwhelming.

I totally get it.

I've been there, all right? What can happen in a typical scenario, again, especially if you're just starting out or doing less than, say, five or $10,000 a month and you've handed off to an agency, you're paying them a fee.

So there's an initial fee.

I would be surprised if you were paying any less than, say, $1,500 a month.

Some people I speak to are paying in excess of $2,000 a month for ads management.

There's a big chunk of cash going to the agency just for the management fee.

The second thing on top of that is obviously ad spend, which you should be responsible for.

But given that an agency is going to manage your ads, there's typically a minimum requirement of spend that you need, right? And sometimes that can vary between, I think on a light, you know, spend honestly would be $50 a day, 1,500 bucks a month.

I think something more typical would be that 80 to $100 a day range, which is, you know, that two and a half to 3K a month.

So you've already got the, you know, 3K ad spend, let's call it 1,500 or 2K agency spend.

Then you've got to make, you know, four and a half, $5,000 per month just to pay those things off, let alone all the other fees, the cost of goods, et cetera.

So already it's a big financial responsibility.