# How to price a performance marketing retainer in India

> Price a performance marketing retainer in India with a base fee plus a share of ad spend or results. Three models, a rupee example and the terms to put in writing.
- **Author**: Marxx
- **Published**: 2026-11-06
- **Category**: Agencies
- **URL**: https://marxx.ai/library-guides/how-to-price-a-performance-marketing-retainer-in-india

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Price a performance marketing retainer in two parts: a base fee that covers your team's cost and margin, and a variable fee tied to ad spend or results. Set the base fee so you still make money in a bad month.

## Pick a model

| Model | How it works | Works when | Watch out for |
|---|---|---|---|
| Flat fee | Same fee every month | Scope is fixed and spend is steady | Work grows, fee does not |
| Base plus % of ad spend | Fixed fee plus a share of what the client spends | Spend will grow | Pays you for spend, not results |
| Base plus performance bonus | Smaller base plus a bonus above an agreed result | The client wants shared risk | Fights over which number counts |

## How to set the fee

1. **List the work.** Creative briefs, campaign setup, weekly changes, reporting and calls. Count the hours each takes in a month.
2. **Cost your team.** Add the monthly salary share of each person on the account, plus tools.
3. **Add your margin.** Divide your cost by (1 minus your target margin). A INR 60,000 cost at a 40% margin gives INR 60,000 / 0.6 = INR 1,00,000.
4. **Make the base fee cover the cost.** If ad spend falls, you still break even.
5. **Add the variable part.** Use a percentage of spend with a cap, or a bonus above the client's [break-even ROAS](/glossary/break-even-roas).
6. **Name the number that decides the bonus.** Say whether it is Meta Ads Manager or the client's own sales data. The two rarely match, see [GA4 vs Meta Ads Manager numbers](/compare/ga4-vs-meta-ads-manager-numbers).
7. **Set the term.** A three-month minimum and 30 days' notice are a sensible start.
8. **Show fees before GST.** Ask your CA which rate and rules apply to you.

## A worked example

Say your cost to serve a skincare brand is INR 60,000 a month. You charge a INR 60,000 base plus 10% of ad spend.

| Monthly ad spend | 10% variable fee | Total fee | Your margin |
|---|---|---|---|
| INR 2,00,000 | INR 20,000 | INR 80,000 | 25% |
| INR 4,00,000 | INR 40,000 | INR 1,00,000 | 40% |
| INR 8,00,000 | INR 80,000 | INR 1,40,000 | 57% |

At INR 8,00,000 your workload will be higher too, so cap the variable fee or add a new tier.

Now check it from the client's side. Say the ads return a ROAS of 3 on INR 4,00,000. That is INR 12,00,000 in sales. Your INR 1,00,000 fee is about 8% of those sales. Most clients can judge that number.

## What to write into the contract

- What is in scope, and what costs extra, such as new landing pages
- The client owns the ad account, and pays Meta directly. See [how to give an agency access to your Meta ad account](/guides/how-to-give-an-agency-access-to-your-meta-ad-account)
- How you report, and when. A [monthly client report template](/templates/monthly-client-report-template) saves time
- Notice period and what happens to creative files when you part

## Mistakes to avoid

- A fee that is only a percentage of spend, with no floor
- A bonus on a number you cannot control, such as sales after returns
- No cap, so growth burns out your team

If you run many retainers, Marxx gives each client a workspace, with unlimited seats. See [agency workspaces](/for/agencies).

## FAQ

### Should I charge a percentage of ad spend?

It is simple and grows with the account, but it pays you for spend, not results. Add a floor, and pair it with a results target the client cares about.

### How long should the minimum term be?

Three months is a fair start, because a new campaign needs time to gather results. Meta says an ad set usually leaves its learning phase after about 50 results in the week after its last significant edit ([Meta](https://www.facebook.com/business/help/112167992830700), checked 2026-10-20). Shorter terms leave you little time to show results.

### Who should pay Meta and Google?

The client. Have them add their own payment method to their ad account, so your agency never carries ad spend.

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