Why We Killed Percentage of Ad Spend

In this episode, Scott and Nathan break down why Blue Sense moved away from percentage of ad spend pricing and what brands should actually look for when choosing an agency model that supports long term growth.They explain why traditional agency retainers often create misaligned incentives and how fixed service pricing helps both sides stay focused on real commercial outcomes.The conversation covers:• Why percentage of spend models rarely match actual workload• How performance guarantees can be gamed without improving business results• Why short term CPA improvements often hurt long term growth• What finance grade KPIs like contribution margin and acquisition MER revealScott and Nathan also walk through how measurement complexity changes as brands scale, and why most businesses under 10 million revenue do not need incrementality tooling yet.They explain:• When media mix modelling becomes useful• Why attribution led KPIs can mislead decision making• How to align agencies around profit instead of platform metricsFinally, they share a simple framework for choosing the right agency partner at each growth stage from sub 5 million brands through to enterprise operators.If you are evaluating agencies, negotiating retainers, or questioning performance guarantees, this episode breaks down what actually matters and what to ignore.Get the latest updates, best practices, and PROVEN eCommerce strategies every day. Subscribe here: ‪@bluesensedigital‬Blue Sense is a global eCommerce consulting firm that partners with founders & operators to tackle their biggest growth challenges.Our YouTube channel is dedicated to sharing our most effective marketing strategies to help you achieve your business goals.If you’re an 8 or 9 figure retailer looking for deeper creative insight or performance insight grounded in real finance reach out today.⬇️️ You can find us here ⬇️️:Website: https://www.bluesensedigital.com.au/Instagram:   http://instagram.com/bluesensedigital/LinkedIn:   http://linkedin.com/company/blue-sense-digital/#googleads #facebookads #digitalmarketing #ecommercetips #shopify