When you hire someone to run Facebook and Instagram ads, you pay for two different things: the ad budget that goes to Meta, and the management fee that goes to the person or agency running the ads. Mixing the two up is the most common reason small businesses feel ads are "too expensive".
Ad spend vs management fee
- Ad spend is paid straight to Meta. It decides how many people see your ads.
- Management fee pays for the work: audience research, ad design and copy, tracking, testing versions, and reporting.
A good agency keeps the two separate, so you always see exactly what went to Meta.
Common pricing models
| Model | How it works | Good for |
|---|---|---|
| Flat monthly fee | A set amount each month, whatever you spend. | Small and steady budgets. Easy to plan. |
| Percentage of ad spend | Often 10% to 20% of what you spend, usually with a minimum. | Larger budgets that change month to month. |
| Per campaign | A fee to set up each campaign, plus ongoing management. | One-off launches or events. |
In the US, commonly quoted management fees for small businesses run from about $500 to $2,500 a month. Offshore agencies are usually much lower.
What management should include
- Clear goals: messages, leads, calls or sales, not just likes.
- Tracking set up so you can see what the ads brought.
- Several ad versions tested, with weak ones switched off.
- Retargeting people who visited your page or site but did not act.
- A plain report: what you spent, what it brought, and the cost of each result.
How much ad budget does a small business need?
Enough for the ads to learn. Very small budgets spread across many ads rarely give useful results. Many small local businesses start with a modest daily budget on one or two campaigns, judge results after two to four weeks, then scale what works. The right number depends on your area, your offer and how much a customer is worth to you.
Red flags
- The agency pays Meta for you and will not show you the ad account.
- Reports full of reach and likes, with no messages, leads or sales.
- No testing: the same ad running for months.
- A long contract before any results.
What we charge
Our Meta ads management is a flat monthly fee: $120, $240 or $450 for US businesses, with no contract. Your ad budget is always paid by you directly to Meta. Ads can also be added to our social media management plans.