The partnership model
Retainer versus performance-based marketing: compare the whole cost
A useful agency comparison includes media, management, setup, scope, and the sales used to calculate compensation—not just the headline fee.
A retainer and a performance percentage are different charging structures. Neither headline number tells you the complete cost. Compare the services, advertising funding, measurement rules, and operating responsibilities attached to each proposal.
Put both proposals on the same worksheet
List management, media spend, setup, feed work, creative production, tracking, reporting, and any separate technology charges. Mark each as included, excluded, or dependent on scope. Otherwise, one proposal can appear inexpensive simply because more of the work sits outside its quoted price.
Next, separate committed expenditure from charges that arise after sales. A predictable monthly invoice can still leave media risk with the retailer. A performance fee can vary with sales while following a clearly agreed calculation. These are different kinds of predictability.
Check what the percentage applies to
“A percentage of revenue” is incomplete. Does it apply to total store revenue, platform-reported revenue, or a defined set of tracked transactions? What happens when more than one platform claims the same order? Are tax, shipping, returns, and cancellations addressed?
At EP4P, the agreed percentage applies to ecommerce sales directly tracked to clicks on our advertising. It does not apply to every sale in the store. We fund the advertising and manage the work within the agreed scope, with no monthly retainer or setup fee.
Compare outcomes without promising them
A proposal should explain how the team will make decisions, not imply that its charging method guarantees growth. Ask what happens if a product loses margin, inventory becomes constrained, or the campaigns stop performing. The answer should connect reporting to practical decisions about spending, testing, and product selection.
For a retailer with a strong internal team, a narrowly scoped retainer may fit a specific gap. A fully managed, funded arrangement may suit a business seeking both execution and advertising investment. The right comparison depends on the job you need done.
Ask for an understandable reconciliation
Before signing, ask each provider to walk through a hypothetical reporting period using its own proposed terms. You should be able to identify every charge, its calculation, and the records supporting it. Avoid comparing an all-in percentage with a management-only fee as if they cover the same thing.
The useful question is: what do we receive, what do we commit, and how do we verify the amount owed? A clear answer matters more than the label attached to the model.
Let our team handle the marketing.
Our specialists put the data, tools, and commercial decisions together, with people accountable for the strategy and the advertising investment.
We build, fund, and manage your campaigns. You pay an agreed percentage only on ecommerce sales directly tracked to clicks on our ads. Our work and the ad spend are included. No monthly retainer or setup fee.