Edition # 9 I The Science of Retainer Fees

It’s 2:30 on a Wednesday, and after five cups of coffee and a solid hour of procrastination, here we are—welcome to this week’s Wednesday Windup.

Today, I'm diving into a fundamental truth in business: to truly succeed, you need to master two fields—your own and your client’s (or your boss's or brand’s).

Sure, mastery of your craft is critical. Whether it's digital advertising, strategy, or analytics, being exceptional at what you do is a given.

But expertise alone won’t win you long-term trust or loyalty.

The real key lies in becoming an expert in the world of the people you serve—your client's business, your boss’s challenges, your team's goals, and even your market’s trends.

You have to understand their unique struggles and objectives just as deeply as you understand your own expertise.

This dual mastery is what transforms a relationship. Yes, being at the top of your field gives you credibility, but what truly keeps a client or boss engaged, and builds lasting trust, is your ability to speak their language, anticipate their needs, and navigate their complexities. 

It's not enough to simply be brilliant at what you do—you need to become indispensable in what they do. It’s this combination of expertise that builds real relationships, delivers lasting value, and drives success for everyone involved.

Now that I’ve gotten that off my chest, here’s what’s in store for the rest of your Wednesday read: the story of how we scaled our agency with smarter retainer fees (throwback pic included), the launch of our new CPC Survivors Society (early access and a chance at a gift card, no joke), and a free Target ROAS Decision Tree to help you take your Google Ads game to the next level.

So, get ready to jump in!

“Knowing others is intelligence; knowing yourself is true wisdom. Mastering others is strength; mastering yourself is true power.”

— Lao Tzu

Unfiltered Stories From the Heart of the Agency: Chapter 9

The Science of Retainer Fees

When I started, most of my clients paid me $89/month. They weren’t stiffing me; that’s what I was charging. I put a lot of work and time and thought into those clients. I went on long walks thinking up strategy. I fell asleep thinking up strategy. I stayed up all night working on their accounts. But I had to charge more. I went to $199/mo and considered those big clients. Then one day, I proposed $499/mo, an absolute gold rush. I remember Frayde and I would go out for dinner whenever we got a $499 check in the mail.

Gary called me one day from the YouTube tutorial. This was one of our very first legitimate leads from a real company. He told me that digital advertising won’t ever work, and not to ever tell him otherwise, but hired us anyway. Ari and I decided to propose a $999 retainer fee. It felt crazy.

It was mine and Ari’s first client trip to New York, as far as I remember. We even stopped in front of MSG to take a picture like a couple of wonderstruck tourists.

As we’re walking down 32nd street, I hear a voice floating down from somewhere. “Are you the guru? Are you the guru?” I look up to see Gary’s face framed by french windows on the second floor of a six-story brownstone.

The brownstone was more like a mansion. Thirty-foot cathedral ceilings, mid-century millwork, custom moldings, a backyard, and furniture too expensive to sit on. We pull up the slide deck on the big screen in one of the many studies on one of the many floors. Gary’s fiddling with the HDMI cord—his back to Ari and me. Our slides are already up on the screen, inches from Gary’s face. “Distract him,” I whisper to Ari, then I flip quickly to our fees slide. I change $999 to $2,499 and get back to the cover slide just as Gary straightens up. My heart was racing like a locomotive. I’m pretty sure Ari’s was too.

Gary didn’t flinch at our proposal. He owns more buildings in LA and Santa Barbara than most people own pairs of underwear.

So you see, getting agency fees right is quite a science.Gary knows this story. We have an incredible relationship with him. He’s still a client. He flew to San Francisco when I gave my first lecture at a marketing conference just to show support.

I have a lot more Gary stories.

P.S: The picture in front of MSG did happen.

What's Going On at AdVenture Academy

We’ve been hard at work building something new for the Academy—a community for advertisers that’s going to change the game. Introducing The CPC Survivors Society, a place where marketers come together to tackle rising CPCs, share insights, and support each other. And here’s the best part: it’s free for a limited time.

If you’re one of the first 200 brave souls to sign up, you’ll also be entered into a raffle to win a $25 Amazon gift card—because who doesn’t need a little retail therapy after staring at campaign reports all day?

Inside The CPC Survivors Society, you’ll get access to:

• Live Q&As with Isaac (hosted exclusively in the community!)
• Insider insights and exclusive content
• 24/7 real-time advice from expert advertisers
• A community of peers ready to answer your toughest questions
• Prizes, free resources, and so much more.

Click here to get early access and start shaping the community!

This made me laugh... 

Target Return On Ad Spend (plus a free integration tool just for you)

Target ROAS (Return on Ad Spend) is one of the most sophisticated bidding strategies available in Google Ads, but understanding how and when to intervene is crucial to unlocking its full potential.

At its core, Target ROAS is a bidding strategy that prioritizes not just the quantity of conversions, but their value. 

When you set a target ROAS, you're telling Google Ads, "This is the return I expect for every dollar I spend." It's a way of controlling the machine—dictating to the algorithm that it should prioritize quality over quantity, focusing on those conversions that will provide the greatest revenue for your business.

Google Ads uses historical performance data, combined with real-time bidding constraints, to predict not only the likelihood of conversions but also the potential revenue from that conversion and determine if it should enter the auction. 

While Google’s algorithms are immensely powerful, they’re not omnipotent. 
Target ROAS can deliver incredible results when it’s set up correctly and managed well, but even the smartest systems need adjustments—based on real-time data and a solid understanding of your business’s performance goals. 

The success of Target ROAS depends on careful, ongoing calibration. 

To help you manage these critical adjustments, we’ve developed a decision tree that integrates directly with your Google Ads account. 

It’s a decision-making framework built on advanced algorithm analysis and strategic insights, designed to guide you through every stage of optimization.

The decision tree provides clear directives on when to adjust your target ROAS, optimize other areas, or modify budgets based on real-time data from your campaigns.

It also helps you understand when to hold off on interventions. 
The decision tree offers the structure you need to make these calls with confidence, driven by data rather than reactionary impulses.

The decision tree is yours, free of charge. Once connected to your Google Ads account, it gives you the power to optimize your campaigns like a pro—whether you're struggling with underperformance, trying to scale, or navigating budget challenges. With this tool, you’re equipped to make the right adjustments, right when they’re needed.]

P.S. We want to make this newsletter valuable to YOU! If you have any specific topics you want us to cover or questions you want answered, hit reply to this email, and let's get in touch! 

P.P.S. Seriously, I mean it! I read every email (mainly because I like to procrastinate)