1. SCOPE OF SERVICES (The “Aggressive Growth” Strategy)

The Agency agrees to provide the Client with the digital marketing, creative, and media buying services outlined below to execute the B2C “Aggressive Growth” Go-to-Market strategy.

A. Phase 1: Core Fixed Services (Months 1-3)

• Premium Social Media Management: Content creation from scratch, high-quality posts, reels, and community management to act as the brand’s “Creative Engine.”

• Google Ads (PPC) Management: Active PPC campaign management is included immediately from Month 1 to capture high-intent search traffic and get the ball rolling with initial sales.

• Foundational SEO Management: Dedicated technical SEO and content strategy to build long-term organic domain authority.

• Introductory Meta Post Boosting: Included at no additional charge during the initial launch phase. The Agency will strategically boost social media posts to get the algorithm and brand awareness going.

B. Phase 2: Meta Ads Expansion (Projected for Month 4+)

• Full-Funnel Meta Ads Management: To be added at an additional $950/month only when transitioning from initial audience boosting to complex, full-funnel Meta campaigns. This phase will commence once initial sales come in, revenue is up, and the ad spend budget is ready to scale.

2. COMPENSATION AND PAYMENT TERMS

The Client agrees to compensate the Agency based on a hybrid model of Fixed Base Fees + Tiered Variable Fees, structured to incentivize account scaling while protecting the Client’s profit margins.

A. Fixed Management Fees:

• Phase 1 Base Fee ($4,450 / Month): The combined fixed management fee for Premium Social Media Posting & Engagement Management, Google Ads Management, Foundational SEO, and Introductory Meta Boosting is $4,450.00 per month.

• Phase 2 Meta Ads Add-On: Once initial sales and revenue increase and the Agency transitions to managing complex Meta Ads Manager campaigns (currently projected for Month 4), an additional $950.00/month platform management fee will be added to the fixed costs, bringing the total base fee to $5,400.00 per month.

• Billing Term: In accordance with standard Agency policy, all fixed management fees are billed upfront at the beginning of each month prior to services being rendered to secure the Agency’s team allocation and resources.

B. Tiered Variable Fee (Performance Scaling & SEO Push): A variable fee will be applied to the total monthly ad spend to cover complex scaling management and a dedicated 3% backlink-building push for SEO. The Agency’s Performance Scaling percentage will dynamically decrease as the budget scales, providing a volume discount:

• $0 – $19,999 Monthly Ad Spend: 21% Total Variable Fee (18% Performance + 3% SEO Push)

• $20,000 – $49,999 Monthly Ad Spend: 18% Total Variable Fee (15% Performance + 3% SEO Push)

• $50,000+ Monthly Ad Spend: 15% Total Variable Fee (12% Performance + 3% SEO Push)

C. Ad Spend & Media Logistics: Ad spend paid to third-party platforms (Google, Meta, etc.) is entirely separate from Agency fees. The Agency will invoice the Client for exact ad spend reimbursement on the 20th of each month. The Client may pay this invoice via credit card (standard merchant processing fees apply). 

D. Client Pre-Approval for Budget & Scope Increases: The Agency operates with strict adherence to the Client’s approved financial parameters. The Agency shall not increase the authorized total monthly advertising spend limit across third-party platforms (e.g., Google Ads, Meta Ads), nor bill for any additional paid services or platform management (such as the Phase 2 Meta Ads Management expansion) outside of the currently active Scope of Services, without prior written approval from the Client.

For the sake of operational efficiency, written approval provided by an authorized representative of the Client via email shall be deemed legally sufficient to authorize said budget or service increases without requiring a formal contract addendum.

(Strategic Allocation: Once a total monthly advertising budget limit is approved by the Client, the Agency retains the strategic discretion to reallocate those authorized funds across active campaigns and platforms on a day-to-day basis to maximize the Client’s Return on Ad Spend (ROAS), provided that the overall authorized monthly spend limit is never exceeded).

3. INTELLECTUAL PROPERTY & ASSET OWNERSHIP (“WORK FOR HIRE”)

The Agency operates with absolute transparency regarding asset ownership. Upon receipt of full and final payment for the respective billing period, the Client shall be granted full, exclusive, and unencumbered ownership of all final creative assets, ad creatives, graphic designs, video reels, copywriting, and custom SEO content created by the Agency specifically for the Client.

Furthermore, the Client shall retain full legal corporate ownership and administrative rights to all third-party advertising accounts (Meta Ads Manager, Google Ads), Google Analytics properties, and tracking pixels established on their behalf. The Agency acts purely as an authorized administrator. If the Client terminates this Agreement, they take all creative assets, historical ad data, and account infrastructure with them.

4. PROJECTIONS, DATA GATHERING, AND LIMITATION OF LIABILITY

A. Projections Are Not Guarantees: The Client acknowledges that Hommeco is a brand-new commercial entity entering a new market with a new URL, unseasoned tracking pixels, and no historical e-commerce conversion data. The 12-Month Financial Projections, spreadsheets, Return on Ad Spend (ROAS) targets, customer counts, and revenue forecasts provided by the Agency during the proposal phase are theoretical mathematical models based on industry benchmarks; they are strictly projections and not legal or financial guarantees of future performance.

B. The “Data Gathering” Phase & Market Viability: The Client understands that high-ticket retail possesses a standard 14 to 45-day consumer consideration window. The initial phase of this engagement (specifically Months 1 through 3) is expressly designated as a “Data Gathering” period. The initial advertising budget is required to train third-party machine learning algorithms and to see the viability of the marketplace regarding consumer response to Hommeco products, pricing, and offers.

C. Limitation of Liability: The Agency acts as a strategic executor of digital marketing but does not control consumer purchasing behavior, market demand, physical product economics, or third-party platform algorithms (e.g., Meta, Google). Therefore, the Agency cannot and does not guarantee any specific sales volume, revenue, profit margins, or ROAS. Under no circumstances shall the Agency be held financially or legally liable for a lack of sales, business losses, or failure to meet projected spreadsheet models. The Client assumes all financial risk associated with the allocation of digital advertising budgets.

5. TERM AND TERMINATION

A. Standard Termination (Month-to-Month): This Agreement shall commence on the Effective Date and will continue on a month-to-month basis. Either party may terminate this Agreement at any time by providing thirty (30) days written notice to the other party. Upon termination, the Client is responsible for any pro-rated variable fees, fixed base fees, and outstanding ad spend incurred up to the date of termination.

B. Immediate Termination for Cause (Breach of Scope): The Client reserves the right to terminate this Agreement immediately, waiving the standard thirty (30) day notice period, in the event of a material breach by the Agency. A material breach is strictly defined as the Agency’s failure to execute and deliver the core Scope of Services outlined in Section 1 (e.g., failure to build campaigns, failure to manage the ad accounts, or failure to deliver the agreed-upon social media assets).

(Please Note: In strict accordance with Section 4, third-party algorithmic performance, market viability, Return on Ad Spend (ROAS), and theoretical financial projections are not guaranteed. Therefore, algorithmic fluctuations, standard market variations, or a failure to meet projected sales targets do not constitute a failure to deliver the Scope of Services and cannot be utilized as grounds for Immediate Termination for Cause).

6. CONFIDENTIALITY

Both parties agree to keep all proprietary business information, financial margins, Cost of Goods Sold (COGS), trade secrets, and internal marketing strategies strictly confidential during and after the term of this Agreement.