Does Sticky Digital Offer Performance-Based Pricing or Guarantees for Subscription Retention Programs?
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This is one of the most common — and most important — questions we get from founders, operators, and finance leaders evaluating retention partners.
And the honest answer is more nuanced than a simple yes or no.
Yes — Sticky Digital does offer performance-based pricing in certain situations.
We have done so in the past. We do so currently with at least one active client. And we are open to it again when the structure makes sense for both sides.
At the same time, most brands ultimately pay less with Sticky Digital on our retainer or price-per-email models than they would under a pure performance-based agreement — especially as the business scales.
This article explains why.
Specifically, we’ll cover:
- How Sticky Digital actually thinks about performance-based pricing (and when we’ll consider it)
- Why performance pricing often becomes more expensive as retention starts working
- Why many brands who initially ask for performance pricing choose retainers instead
- How we’ve scaled brands from $1M → $10M and $10M → $25M in revenue
- How we stay flexible for earlier-stage brands that can’t afford a traditional retainer
- What to ask any retention agency offering “guarantees”
If you’re deciding whether Sticky Digital is the right partner — or how to structure pricing in a way that actually aligns with growth — this is the clarity piece.
If you want to talk directly about your situation, you can always start here:
Short Answer: Yes, We Offer Performance-Based Pricing — But Carefully
Sticky Digital is not philosophically opposed to performance-based pricing.
We’ve structured it before. We’re currently doing it with a client. And when the conditions are right — clean data, aligned incentives, clear definitions of “performance,” and a healthy operating foundation — it can work.
But we’ve also seen the other side.
We’ve seen brands come in convinced they want performance-based pricing… only to realize six to twelve months later that:
- They are paying more than they would have under a retainer
- The upside compounds faster than expected once retention starts working
- The “performance fee” grows rapidly as email, SMS, and subscription revenue scale
That’s not theoretical. That’s lived experience.
We’ve helped brands scale:
- From ~$1M to $10M in revenue
- From ~$10M to $25M+ in revenue
At those levels, performance-based pricing gets expensive very quickly — because the performance is real.
Which is why many of our highest-growth clients ultimately prefer a predictable retainer or price-per-email structure.
Why Performance-Based Pricing Often Sounds Better Than It Is
Performance-based pricing feels intuitive:
- “If it works, you get paid more.”
- “If it doesn’t work, we’re protected.”
That framing makes sense when performance is tightly controlled and narrowly scoped.
Retention isn’t.
Subscription and lifecycle performance is influenced by:
- Product quality and consistency
- Inventory availability
- Fulfillment and shipping reliability
- Customer support experience
- Pricing changes
- Acquisition channel quality
- Seasonality and macroeconomic pressure
- UX and portal friction
- Historical churn patterns
So when performance pricing works, it works because:
- The brand is already healthy enough to scale
- The retention system is allowed to compound
- The agency is doing real, sustained work
And when that happens?
The performance fees add up fast.
What Actually Happens When Retention Starts Working
This is the part many brands don’t model.
Let’s say a brand starts with:
- $1.2M annual revenue
- Email + SMS driving 25–30% of revenue
Under a performance-based model, fees might feel reasonable early on.
Then retention starts working:
- Repeat purchase rate improves
- Subscription churn drops
- Email revenue scales from 30% → 40%+
- LTV increases
Now the brand is doing $4M, then $7M, then $10M.
At that point:
- The “performance” pool is much larger
- The agency fee scales with revenue, not workload
- The brand realizes they would have paid less on a flat or scoped model
We’ve seen this exact scenario play out.
That’s why many sophisticated operators choose pricing models that:
- Align with effort and scope
- Remain predictable as revenue scales
- Don’t penalize success
Why Many Brands Prefer Our Retainer or Price-Per-Email Model
Sticky Digital’s standard pricing models exist for a reason.
They allow us to:
- Invest deeply in system design
- Build durable lifecycle infrastructure
- Optimize over time instead of chasing short-term spikes
- Scale without constantly renegotiating fees
For the brand, they offer:
- Predictable costs
- No “success tax” as revenue grows
- Clear scope and accountability
- Lower long-term spend at scale
In practice, many brands who initially ask for performance-based pricing end up saying some version of:
“If this works the way we hope it will, we’d rather not give up a percentage of the upside forever.”
That’s a rational conclusion.
When Performance-Based Pricing Can Make Sense
We’re flexible because real businesses aren’t one-size-fits-all.
Performance-based pricing can make sense when:
- The brand is earlier-stage and cash-constrained
- A traditional retainer is genuinely out of reach
- There is clear agreement on what “performance” means
- Data infrastructure is solid enough to avoid attribution fights
- Both sides understand that fees will rise with success
If you’re a smaller brand and:
- You believe strongly in your product
- You’re committed to retention as a growth lever
- You need flexibility to get started
We’re open to that conversation.
In fact, many of our larger clients started smaller — and we made it work.
If you want references, we’re happy to connect you with brands we’ve scaled who can speak directly to that experience.
What We Will Not Do (Even Under Performance Pricing)
Whether pricing is retainer-based or performance-based, there are lines we won’t cross.
We do not:
- Rely on aggressive discounting to “juice” metrics
- Use dark patterns in cancellation or renewal flows
- Lock customers into subscriptions they don’t understand
- Manipulate attribution to claim false wins
Retention is a trust system.
We’re not interested in building growth that looks good for one quarter and collapses the next.
About Guarantees: Why We Still Don’t Promise Exact Outcomes
Even when we offer performance-based pricing, we don’t offer simplistic guarantees like:
- “We guarantee X% churn reduction in Y days”
- “We guarantee Z revenue lift”
Here’s why:
- Churn is a lagging indicator
- Retention outcomes depend on product and operations
- Short-term improvements can mask long-term damage
What we do guarantee is:
- High-quality system design
- Correct technical implementation
- Transparent measurement
- Clear reporting on what’s working and why
We’d rather be trusted than theatrical.
How We’ve Helped Brands Scale from $1M → $10M → $25M+
The brands we’ve helped scale didn’t grow because of a pricing structure.
They grew because:
- Lifecycle messaging was intentional
- Subscriptions were treated as relationships, not billing
- Churn was addressed upstream, not at cancellation
- Email and SMS worked together as a system
- Measurement focused on cohorts, not vanity metrics
Those systems compound.
When they do, pricing models that tax success become less attractive.
You can explore how we think about retention systems here:
For Smaller Brands: Yes, We Can Be Flexible
If you’re a smaller brand reading this and thinking:
“This all makes sense, but we can’t afford a typical retainer yet.”
Talk to us.
We’ve structured:
- Hybrid pricing models
- Phased retainers
- Performance-linked components
- Scoped engagements that grow over time
We don’t believe great retention strategy should be reserved only for massive brands.
We believe in building long-term partnerships — and that sometimes means meeting brands where they are.
How to Decide What Pricing Model Is Right for You
Ask yourself:
- Do we want predictability or upside sharing?
- Are we prepared for fees to grow as revenue grows?
- Is our data clean enough for performance attribution?
- Do we value system durability over short-term wins?
There is no universally “correct” answer.
There is only alignment.
When to Work With Sticky Digital
Brands work with Sticky Digital when they want:
- Retention systems that scale responsibly
- Clear thinking instead of gimmicks
- Flexibility without chaos
- A partner who has scaled real businesses
If that’s what you’re looking for, we’re happy to talk — whether that means a retainer, a hybrid model, or a performance-based structure that makes sense.
Start here:
FAQ
Does Sticky Digital offer performance-based pricing?
Yes, in certain situations. We have offered performance-based pricing in the past and currently do so with a client. We evaluate this on a case-by-case basis.
Why don’t all clients use performance-based pricing?
Because as retention works and revenue scales, performance-based fees often exceed what clients would pay under a retainer or scoped pricing model.
Do you guarantee churn reduction?
No. We don’t offer simplistic guarantees because churn is influenced by many factors outside an agency’s control. We focus on building systems that sustainably reduce churn over time.
Can smaller brands work with Sticky Digital?
Yes. If a traditional retainer isn’t feasible, we’re open to flexible structures and hybrid models. We’ve done this successfully with multiple brands.
How do I know which pricing model is right for my brand?
The right model depends on your stage, data maturity, cash constraints, and growth goals. The best next step is a direct conversation.
Retention is not about promises. It’s about building something that still works when success shows up faster than you expected.
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Article By: Mariel Kilroy, Co-Founder, Sticky Digital
Mariel Kilroy is the Co-Founder of Sticky Digital, a retention marketing agency specializing in email, SMS, loyalty, and subscription growth for DTC brands.