Innovative Pricing for PPC ManagementBecause a flat percentage fee just doesn't make sense...
20% PPC Management Fee?!!
Can you say “cost-prohibitive”?
Look around at some of the large Pay Per Click management agencies and you’ll find a lot of flat rate percentage fees as high as 25%, but 10-20% is very common. Agencies love this, clients think it’s just the going rate, but I think it’s nuts. Sure, there’s a lot of work involved in setting up and maintaining Google Ads and every account and client is unique.
A 25% management fee actually makes sense at lower monthly spends under $1,000 but once you get over $1,000 and $10,000, I believe 20% management fees become cost-prohibitive and excessive. Many businesses have profit margins under 10% so how can they afford to pay 25% for Google Ads management!
This is why I developed an innovative pricing structure to cover my fixed costs for clients with lower budgets and decrease the total cost percentage for clients who grow their spend. My cost structure is $79 + 5% of monthly spend. So as your spend increases, your total cost moves ever closer to 5%.
This table shows an example of fees I would charge at different spend levels:
|Total Advertising Spend||Total Fee ($79 + 5%)||Actual % Fee|