Anyone here running a performance-based agency model for Google Ads?
Not talking about the usual “$1.5k/mo retainer + setup fee” structure. I mean genuinely lowering the upfront risk for the client.
Me and my cofounder are building a small agency focused mostly on Google Ads for SMBs/local businesses (Meta too sometimes, but mainly intent-based stuff). We both come more from operator/performance backgrounds than “creative agency” backgrounds, and honestly part of the reason we’re doing this is because we got tired of seeing businesses burned by generic marketing retainers that never really connect to revenue.
So the model we’re testing is something like:
- free audit
- free setup
- first month management free
- then commission-based for the first few months if the campaigns actually produce customers
Main reason we’re considering this is simple: we’re new as an agency entity, and we understand why businesses won’t immediately trust us over agencies with many case studies and polished sales calls.
So instead of trying to “out-brand” established agencies, we thought "ok… what if we just remove most of the upfront risk instead?"
But I can already see potential problems with this model and honestly… part of me wonders if “free” immediately lowers perceived value even if the actual offer is strong.
We’re also planning to specialize pretty hard instead of becoming full-service. Mostly Google Ads, SEO, landing pages and some Meta support/retargeting - because generalist agencies feel more and more commoditized lately tbh.
Curious if anyone here has actually tried a model like this long-term and whether it helped or backfired. Especially in local service businesses or higher-ticket lead gen.