Knowing how to charge your customers and how much Google Ads management costs is a puzzle for both veterans and newbies who provide PPC management services to clients. This blog will outline some of the most common Google Ads management payment agreements so you can decide what’s best for your Google Ads agency!
What Does Google Ads Management Look Like In 2022
Google Ads management in 2022 is becoming increasingly popular as a form of income for both freelancers and agencies. It’s easy to learn how to promote brands on platforms like Google Ads, but being up to date with the latest trends for these platforms and fiddling with what works best in terms of getting the most conversions for as little spending as possible is something that takes time and practice. Something not many brands have.
This is why many freelancers are learning how to run Google Ads campaigns, either as a side business or a full-time job, so that they can ease this headache for less experienced brands who want to use paid advertising techniques to bring in more leads and in end, gain new clients.
How Qualified Are You?
Before we dive into the different ways you can charge your customers as a Google Ads expert, it is important to determine your level of experience first.
Of course, if you have a lot of experience running ads on Google with a plethora of success stories, you should be able to charge a higher price for the digital marketing campaigns you produce and run for clients. Conversely, while you are still building that wallet, it may be best to choose a payment agreement that favours the customer so that it is easier for them to put their trust in you.
Some tips to get more experience, or at least more credibility for the services you offer is to get certifications in Google Ads such as a Google Ads certification that allows you to display a badge on your website, or your own ads confirming that you are a certified Google partner.
Payment Agreement Options
Hourly Rate
This seems like a natural way for many PPC marketers to start charging their customers because it’s easy to show exactly what the customer is paying.
One of the problems with this payment agreement is that if you are a fast worker, you negatively impact your profitability, as someone who is able to perform the same service as you, but works at half the speed, gets double the payout. Again, this payment agreement will result in a happy customer because the short time, which has less impact on their marketing budget, is always good for everyone.
Performance
It is possible to charge the customer a fee based on the desired outcome of running PPC ads. For example, you can charge a customer for X number of leads generated from one month of running Google Ads.
While this works well for clients because they know exactly what they are paying for, this is a huge risk for Google Ads experts because unfulfilled goals due to unrealistic client expectations or variables out of your control can affect your credibility with the client, and may even lead to refusal to pay you for your service for which you were unable to meet expectations.
Flat Fee
Charging a single amount upfront may seem like a good option for PPC marketers, and for many, it’s the right payment agreement for their situation. However, what this payment agreement fails to take into account is that not all pay-per-click advertising needs are the same.
Charging the same flat rate to two separate clients, each with separate expectations and operating in completely different industries, can make you feel like you’re working a lot more for your money for one client than the other.
You will also need to measure the duration and amount of work in advance to prepare effective ads that meet the client’s goals, which can be difficult for new marketers in particular. This highlights the importance of properly preparing the client with the right briefing questions.
Percent (%) Of Ad Spend
This payment agreement involves charging a certain percentage of the customer’s total advertising spend. An example would be that you charge 10% of the customer’s PPC, which means if they spend $1000 on ads, they will pay you $100.
This pay-per-click agreement works well for you, as the pay-per-click marketer is covered for any additional work you need to do while increasing the customer’s advertising spend.
Combination (Hourly Rate + Flat Fee)
Many PPC marketers in 2022 decide to use a combination of the above-mentioned payment agreements rather than just picking one and sticking with it.
An example is using an hourly rate to set up ads for a client, and once you set up ads, charge a flat fee to monitor and rate ad performance. This means that you will be adequately compensated for the amount of work you have done in the client’s account, and still set up recurring income to monitor ads which will naturally take less time than creating the ads in the first place.
Final Words
As you read through the payment agreement options, there may actually be one that stands out to you and screams success for your business. And if not, it is important to note that it is possible to be successful with any of the payment agreement options listed above, and it may also be worth testing out our different options to see what works best for you and your business.
But that’s not all the Google Ads information we provide, take a look at our SF Digital blog to learn more about PPC advertising and how you can use it to grow your business.
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