Many small business owners aren’t exactly sure how much to charge for Google Ads management. The pricing of Google Adwords campaign management often depends on the client and their specific goals. Different businesses also have a different amount of resources to dedicate to Google Ads management and there are also a variety of Google Ads management packages. If you would like to learn more about how much to charge for Google Ads management, watch this video. Alternatively, here is a quick guide to PPC management pricing.
PPC pricing models
Here are some of the main ways PPC management is charged:
- Hourly rate
- Percentage of ad spend
- Flat rate pricing
- Performance-based pricing
- Milestone-based pricing
Google Ads management cost or other PPC management can be either paid by the hour or for a flat fee. Another common option is to charge a percentage of the ad spend. This is typically 10-20% of the ad budget. Pricing based on a percentage of ad spend is more common than paying by the hour. As the budget for ads increases, an agency’s work is also increased, so it works in this way.
In other cases, Google Adwords management fees depend on the performance of the ad itself. This could be based on set goals or milestones agreed on by both the client and the PPC agency, usually related to the success of the ad and how much profit it generates.
Tips on PPC management pricing
Each PPC pricing model has its pros and cons but the campaign’s success will depend on the goals and values agreed on by the PPC agency and client. This means the client/agency relationship is crucial. Here are some more tips on how to charge for Google Ads management for freelancers or PPC agencies.
Avoid billable hours
Charging per hour, whether you work as a freelancer or established PPC agency, is not recommended. It’s better to offer clients good value for a set fee. If you charge by the hour then you won’t get paid when you’re not working or on holiday, for example.
With flat-rate fees, on the other hand, clients pay the same no matter how many hours have been spent on the campaign. This often creates a more trusting client/agency relationship. It’s also a lot simpler when the scope of the PPC services and goals are clearly defined at the start.
Keep Google Ads and fees separate
If you keep Google Ads and your fees separate your client will know how much they are spending on each. It’s always better to communicate your rates with transparency so your client knows exactly what they’re paying for. Clearly express the difference in price for the ads and your weekly or monthly fee.
Run the campaign in the client account
It’s recommended to run the campaign in the client account. This way your client will have access to all relevant data and you can keep them in the loop at all times. This also promotes transparency and a better client/agency relationship. Never run up the Google Ad charge on your credit or debit card. If your client doesn’t pay, then you will lose this money.
Opt for the performance-based billing model
The performance-based billing model could be considered a win-win scenario. You could choose to charge a minimum fixed fee and then add on a percentage of the ad spend. Offer an increase for better performance. This works as an incentive to produce better quality work. With the performance-based billing model, you don’t need to worry about charging a different amount between Google, Facebook, or Twitter, for example.
Milestone-based billing is similar to performance-based pricing but with a broader range of metrics. Example “milestones” include qualified lead generation, increased click-through rate, and lower cost per acquisition. Clients will only increase ad spend if the ad is making a profit. This means it’s in the interest of the PPC agency to improve the performance of the ad and ensure it brings in profit.
Whichever PPC pricing option you choose, the most important thing is to ensure the goals of the client and agency are clearly aligned. Establish the metrics to determine the success of the campaign and how this will affect the fee. Conversion rates and return on investment (ROI) are some examples of the most common metrics.
Google Ads management costs depending on a variety of factors. If you would like to find out exactly how much to charge for Google Ads management for your business, learn more today.
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