A low percentage does not always mean a low monthly cost. If an advertising account supplier charges the greater of a percentage fee or a fixed monthly minimum, the minimum controls your cost whenever media spend is below the break-even point.
Ask for the formula, billing period and included work in writing. Then model at least three spend levels. A minimum can be reasonable when it pays for real account operations, but it should not be hidden behind an attractive percentage.
Monthly service charge = the greater of [minimum charge] or [fee rate × defined fee base]
Do not calculate until the fee base is defined. It may be cleared deposits, consumed media, net eligible spend, or another amount in the agreement. Also confirm whether tax, bank charges, currency conversion, creative work, campaign management and emergency support sit inside or outside the minimum.
Google's third-party policy requires providers to be transparent about the cost and performance of Google advertising and to distinguish Google Ads costs from the third party's own management fee. Apply the same separation to any platform quote: media cost and supplier service charges need different lines.
If the supplier uses a percentage fee with a minimum, the simple break-even point is:
Break-even media spend = minimum monthly charge ÷ percentage rate
For illustration only, assume a fictional quote has a $500 monthly minimum or a 5% service fee, whichever is higher. The break-even spend is $10,000. These figures are not YC pricing, market benchmarks or customer results.
| Monthly media spend | 5% calculation | Charge under the fictional rule | Effective service rate |
|---|---|---|---|
| $4,000 | $200 | $500 minimum | 12.5% |
| $10,000 | $500 | $500 | 5% |
| $20,000 | $1,000 | $1,000 percentage fee | 5% |
The minimum matters most during onboarding, paused campaigns, seasonal slow periods and account restrictions. Ask whether a partial month is prorated and whether a month with zero spend still triggers the full amount.
“Account service” is too broad for approval. Convert it into named deliverables and responsibilities. If two suppliers have the same minimum but one includes campaign management and the other only coordinates funding, the commercial offers are not equivalent.
Keep the supplier's service charge separate from platform promotional credits. A promotional credit can have its own eligibility, expiry and use conditions; it should not automatically be treated as payment of the supplier's fee unless the agreement explicitly says so.
Supplier / quote version: [ ]
Minimum amount and currency: [ ]
Percentage rate: [ ]
Defined fee base: [ ]
Greater-of, additive or tiered rule: [ ]
Break-even spend: [ ]
Billing period and timezone: [ ]
First billable event: [ ]
Zero-spend treatment: [ ]
Partial-month treatment: [ ]
Accounts / platforms covered: [ ]
Included deliverables: [ ]
Excluded work and pass-through costs: [ ]
Pause / termination rule: [ ]
Invoice evidence and dispute window: [ ]
Use the service-fee basis comparison to define the calculation base and the total-cost model to compare the whole offer.
Send YC Global Tech your platform, website, target markets and expected monthly spend to request account-service terms. Any minimum, percentage fee and included scope are confirmed for the specific arrangement before payment.
Sources checked 11 October 2026. The break-even model and checklist are original buyer tools.
Need help with an ad account, fees or funding terms? Talk to YC about your requirements.
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