Management Fee Calculations

By Ricky Cutler
3 min

Release Date Mar 12, 2025

Table of Contents

Overview

What

Management fee calculations are updated in Ui.Marketing to reflect industry standards.

Who

It impacts all line items that run on a billing type of “management fee” & “management fee only”

Why

This was implemented to increase margins on products that run on management fees and match industry standards

Example

New Calculation:

Ad Spend = Retail Budget * (1 - Management Fee)

Old Calculation:

Ad Spend = Retail Budget / (1 + Management Fee) 

Walkthrough

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In the Proposal tool, as users enter their ad spend or budget, the tool will auto-calculate

  • How to calculate Budget: Budget= (Ad Spend)/(1-Management Fee)

  • How to calculate Ad Spend: Ad Spend = Budget * (1 - Management Fee)

  • Typically, these products are sold at a tiered rate. The rate will change automatically based on the ad spend

  • These calculations can be done via the totals at the top, or within the Allocations table

An admin override is required if users go below the minimums associated with the products.

  • Minimums are based on the ad spend, not the budget

  • Only internal admin users can override minimums, proposals cannot be submitted into orders if there are line items below minimums that have not been approved yet

  • If a minimum was approved, then is changed to a different number below the minimum, another approval is required

Additionally, management fee products do not support rates at or above 100%

  • If users enter any number above 99.99% an error message shows and the budget/ad spend will not be calculated

  • Once the user changes the management fee back to a number it accepts, it will re-calculate

  • Only users with the “edit CPM” user permission can adjust this rate

Legacy Rates

All sold and live orders inside of Ui will retain the legacy calculation after this is released. As of the release date, all new line items will use the new calculation.

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There will be a toggle at the line item level to determine the line items that use the old and new calculations.

  • Toggled ON (blue) means it is using legacy rates. Toggled OFF (gray) means it is using the new calculation

  • All proposals that have not yet been submitted into an order will be re-calculated. This means any new line item submitted will have the new calculation.

  • The default for new line items is new calculations, however, on a sold line item users can manually indicate if it needs to use legacy.

  • This toggle only shows on products with the billing type of “monthly mgmt fee” and “monthly mgmt fee-only”

    • Meaning, if the product has a billing type of CPM, CPV or set up fee this toggle will not show

Not Included

  • Setting preferences on a hierarchy or product to indicate the type of calculation it gets

  • Changing the calculation on the proposal (this can only be changed on sold line items)

Helpful Links

 

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