← All topicsThree-Tier Pay-Per-Lead Agency Pricing Model
A three-tier agency pricing model progression from client-pays-ad-spend to agency-pays-ad-spend with pay-per-lead and pay-per-booking tiers.
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Agent trigger phrases: pay per lead pricing model · agency pricing structure · how to charge per booking · pay per performance agency model · should I pay for client ad spend · lead gen pricing tiers
Three-Tier Pay-Per-Lead Agency Pricing Model
Tier 1: Client Pays Ad Spend + Pay Per Lead (Starting Point)
- Client pays for their own Meta/Google ad spend
- Agency charges per qualified lead delivered
- Lower risk for agency, lower perceived value
- Good for first clients / proving the model
- Example: $297/month base + setup fee + client manages ad budget
Tier 2: Agency Pays Ad Spend + Higher Pay Per Lead
- Agency runs ads on their OWN ad account
- Agency fronts the ad spend
- Charge $80-90 per lead (vs ~$30-50 CPL cost)
- Arbitrage on the difference = profit
- Why clients love it: Zero risk on ad spend, they only pay for results
- Why it works: You get WAY more clients because the offer is irresistible
- Proven: Agencies doing this get 2-3 new clients per day
- Bonus: You earn credit card points on all ad spend (Amex/Chase)
- Bonus: No need to get access to client's Business Suite
Tier 3: Agency Pays Ad Spend + Conversion System + Pay Per Booking
- Agency runs ads AND handles instant lead conversion/follow-up
- Charge $200-300 per BOOKING (not just lead)
- Highest risk but highest reward
- Requires confidence in your conversion system (AI follow-up, speed to lead)
- You control the entire funnel from click to booked appointment
Key Numbers
- Expected CPL from ad spend: $30-50
- Tier 2 charge: $80-90 per lead → ~$30-60 profit per lead
- Tier 3 charge: $200-300 per booking
- Revenue scales proportionally with risk taken on
When to Move Up Tiers
- Start Tier 1 with first client to prove CPLs are predictable for the niche
- Move to Tier 2 once you have proven, repeatable metrics
- Move to Tier 3 once your conversion system is "absolutely peak dialed"
Setup Fee Strategy
- Always charge a setup fee: minimum $500, ideally $1,000-2,000
- First client can be higher ($5K) if you're building custom
- "Not having a setup fee just attracts the shitty clients"
- Setup fee funds your customer acquisition costs (ad spend budget)
- Without setup fee, you're constrained on ad spend budget