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PPC management - what do you charge ?

by smallbusinesstoolkit
4 replies
  • SEO
    • |
Hello

I want to start offering PPC campaign management , my idea is to charge fee as the percentage of budget .
I think that 30% management fee will be reasonable - what do you charge ?
#charge #management #ppc
  • Profile picture of the author dburk
    Originally Posted by smallbusinesstoolkit View Post

    Hello

    I want to start offering PPC campaign management , my idea is to charge fee as the percentage of budget .
    I think that 30% management fee will be reasonable - what do you charge ?
    A fee based on ad budget is customary for the industry. There are some companies that charge as high as 30% and there are some that charge as low as 10%. However, it is not likely that you will get good management at the low end of these rates. Charge too much and your fees will exceed the client's margin for profit.

    A talented PPC manager is not going to work for $2.00 an hour, not even in third world countries. A fee should be high enough to cover the actual cost of labor required for adequate PPC management, but not be so high that the client cannot make a profit. The standard for the industry is 15%, however that is far too little for a really small ad budget. 30% would be about right for clients with tiny ad budgets, say less than $1500 per month.
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  • Profile picture of the author Lucid
    Totally agree with Don once again. You have to look at it from an hourly rate point of view. A client spending say even 20% of spend will eventually wise up and figure they can save a lot by going to someone else who doesn't charge as much or have a different fee structure.

    A percentage of spend never made sense to me but as Don said, customary in this industry. If you charged 15% of $100 spent each month, that is not worth it for you most likely, unless you have a minimum. It may not even be worth it if they spent $1,000 depending on the size of that campaign. That's why I charge a fixed fee based on the size of the campaign. It's mostly based on my desired hourly rate of course and I do have a monthly minimum. The client knows how much it will cost him each month and there won't be surprises. I feel he's also more likely to use the service long term.
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  • Profile picture of the author FrankRumbauskas
    15-20% is customary.

    Having said that, client interest is shifting to SEO as AdWords costs continue to rise and return on investment diminishes.
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    • Profile picture of the author dburk
      Originally Posted by FrankRumbauskas View Post

      15-20% is customary.

      Having said that, client interest is shifting to SEO as AdWords costs continue to rise and return on investment diminishes.
      Hi FrankRumbauskas,

      True, it has always oscillated between SEO and PPC, as more people shift to SEO, the ROI becomes more attractive for PPC, and then it shifts back to SEO, then back to PPC in a never ending cycle driven by supply and demand based on ROI.

      Smart marketers are dominating both channels at all times.
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      * Get Results - Outsource Your PPC Management |
      *       Don Burk Advertising & Marketing - www.donburk.com

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