Pricing For PPC Management

by Dave d
4 replies
  • PPC/SEM
  • |
Hi, I work with Bing PPC accounts daily and have a strong working knowledge of the platform.

I have been approached regarding some freelance work and I would appreciate some advice on how you would price this.

Do you price per hour or per project with advertising costs on top, how do you measure the success of your work, is it in terms of CTR, traffic or conversions.

Any advice appreciated.
#management #ppc #pricing
  • Profile picture of the author AyiamDigital
    1. How about charging clients a 'management fee' that's either a flat rate based on the value you bring & what the market will bear, or a percentage of the monthly ad spend; whichever is more of a win-win for all parties involved?

    2. Even if you/we measure work based on CPC, traffic, conversions, etc, all that matters at the end of the day to the client is making more money. CTR could be huge but sales could be low. CTR could be very low but conversions high.

    Traffic could be sent in droves, but if none are buying, that's not a benefit to the client unless they only want brand awareness to be their end result. Conversions could be high but the customer acquisition cost too high to give the client a good ROI.

    So at the end of the day, I'd say ROI is all that really matters. All the other metrics are just data to help attain it.
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    • Profile picture of the author dburk
      Hi Dave,

      There are many different pricing models for PPC management the most commen being a percentage of ad spend, because it scales with your clients needs, which may change over time.

      I agree with much of what AyiamDigital wrote in his post, but then I read his conclusion and I must strongly disagree with his conclusion:
      Originally Posted by AyiamDigital View Post

      So at the end of the day, I'd say ROI is all that really matters. All the other metrics are just data to help attain it.
      I would say that ROI is just another metric, and in most cases it should not be the primary KPI. In my opinion, at the end of the day it isn't a metric that matters, what matters is what is real and tangible, and for most businesses that will be total profits. ROI, is just a metric that helps you figure out how to get to what generally should be your primary KPI: total profit.

      Think about it, at the end of the day would your rather have a higher ROI? Or a higher total profit? You can spend profits, while an ROI is just a statistic, you cannot pay your bar tab with a statistic.

      Now I know some folks my be thinking, isn't ROI the same thing as profit?

      No it isn't profit, it is a metric that measures the ratio of profit-to-cost, without consideration of volume. Typically the highest possible ROI will occur at, or near, the lowest possible sales volume. Which usually means very little total profit.

      Which would you prefer "at the end of the day"?
      1. A 400% ROI with $1000.00 in proft?
      - OR -
      2. A 40% ROI with $150,000.00 in profit?
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  • Profile picture of the author Dave d
    Thanks for the input there are some vailid points made. A percentage of ad spend is interesting however I am presuming the client would have to spend a certain amount per month to make it viable and the percentage would vary according to spend.
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  • Profile picture of the author svetod
    I would suggest a fix rate + a percentage of ad spend. For example $500 per moth + 4% Ad Spend or something like that.
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