Why pay extra when you can save more: 0% commission on your dealership's ad spend

0% commission on media spend in Quebec, since May 2022

Drive Good opened in Laval, Quebec, in May 2022 with one promise to car dealers: we don't take a cut of your ad budget. While other agencies charge from 15% up to 25% of media spend, Drive Good has charged 0% commission from day one, on Facebook, Instagram, Google and TikTok ads. Today, 350+ dealers across Canada and the US trust us with their marketing. Car dealer marketing in Quebec →

How much do car dealer marketing agencies charge?

A car dealer marketing agency usually charges in one of three ways:

• A percentage of ad spend. The agency bills a share of your monthly ad budget on top of the budget itself. Industry pricing guides put the usual range at 10% to 20% (WordStream), and smaller budgets pay more: 20% to 30% for accounts under $5,000 a month (Swydo). In automotive, dealers have been trained to see 15% as normal (ppc.io).
• A flat management fee. A fixed monthly fee on top of the ad budget, whatever you spend.
• A hybrid. A base fee plus a percentage of ad spend, often with a monthly minimum.

Many independent dealers work with ad budgets under $5,000 a month, exactly where percentage fees are highest. That's why so many dealerships pay from 15% up to 25% on their media spend.

What a 15% to 25% commission costs a dealership

The commission isn't only money out of your pocket. It's the buyers that money could have reached.

At $3,000 a month, a 25% commission takes $9,000 a year: three full months of ads that never ran. At $10,000 a month, it's $30,000.

Percentage of ad spend vs flat fee vs 0% commission

The hidden fees to ask about

The commission is often only one line on the invoice. One finance firm that reviews media agency retainers found that charges billed outside the base scope push the real cost to about 25% of ad spend (Eightx). Before you sign, ask:

• Do you take a percentage of my ad budget? And is it calculated on what I budget or on what is actually spent?
• Is there a minimum monthly fee? It can turn a 15% rate into 30% on a small budget.
• Are setup, creative or "technology" fees extra? Get every fee in writing.
• Will I see what each platform actually charged? The amount Meta, Google and TikTok billed should match what you pay for ads.
• How long is the contract? A long commitment makes a high fee hard to escape.

The conflict of interest

When an agency earns a percentage of your ad budget, it earns more every time you spend more, whether or not you sell more. With no commission on the budget, our advice has one goal: a lower cost per sale. If a channel doesn't bring buyers, we tell you to spend less on it.

How 0% commission works at Drive Good

• Every ad dollar goes to the platforms. For eligible accounts, we take no percentage, markup or management fee calculated on your ad budget.
• You set the budget. Raise it, lower it or pause it. Our fee doesn't grow with it.
• One package. Your campaigns on Facebook, Instagram, Google and TikTok, DriveGood AI, your website and your DMS come in one Drive Good package. The package has its own fee; there's just no cut of your ad budget.
• No long-term contract. You can cancel with 30 days' written notice.
• Who is eligible. Small and independent dealers. The offer isn't available to large dealerships or dealer groups. Details are in our terms and conditions.

Put the savings back into selling

The $5,400 to $9,000 a year a $3,000-a-month dealer would pay in commission is up to three extra months of ads: more vehicles in front of more local buyers, and more leads in your DMS. See how we run dealer ads →