There’s primarily four ways to charge for PPC services
- Lead per defined cost,
- Percentage based on ad budget spent,
- Percentage of lead benefit, and
- Pay per hour.
- The one you choose depends upon your business structure and the number and characteristics of your clients.
You can charge for PPC set-up service too
This would include:
- Keyword research,
- Campaign creation,
- Ad group creation,
- Writing adverts,
- Selecting landing pages,
- Configuring max CPC,
- Configuring advanced options like position preference and limiting ad display times,
- Configuration of analytics for conversion data, and
- Report of changes covering keywords, advert text, costs
- PPC setup for a small web site including up to 60 keywords, 10 Ad groups, and 20 adverts = $475
- PPC setup for medium sized web sites up to 100 keywords, 20 Ad groups, and 40 adverts = $815
- PPC setup for large and corporate web sites up to 150 keywords, 30 Ad groups, and 100 adverts = $1,358.
This pricing is based on set-up fees for one search provider, i.e. Google.
PPC Management Fees
PPC management service fee is 15% of monthly spend, and includes monthly report detailing all keyword information, costs and conversions. This monthly service also includes a monthly “tweak” to update any underperforming adverts, keywords and updates for Cost Per Click as required.
This could include PPC tune ups, which are for clients who already have a paid advertising campaign, but would like to generate more traffic, or reduce costs.
Some self-employed PPC managers estimate how much of their time the client will need and charge an amount based on how much work the campaign will need. But if interested in a %-of-spend fee system, then 15-20% of your spend is a standard range for PPC campaign management.
Here is a direct quote from one experienced PPC campaign manager:
“I charge $300 to $2500 a month to manage an Adwords campaign, with set up costs – $300 to $1000. The $300 fee is for clients that run $500 to $1000 and covers several campaigns with 10 – 15 ad groups and about 5000 keywords.
The $2500 a month covers campaigns that run $10,000 to $15,000, have 20 campaigns and 20,000 keywords.
There are additional charges for landing page optimization, which nearly every client needs.
Make sure they have a good landing page with measurable conversion, or both of you will not be happy.
I also charge extra for difficult Analytics set up – multiple or cross domain tracking, action tracking or multiple conversions.
Don’t bother running Adwords without Analytics.
Even after all this – I always feel short changed for the amount of work involved.”
Check out Ron Rule’s PPC Revenue Estimator tool, which can be found at http://ronrule.com/ppc-revenue-estimator/.
This tool allows you to input product price, cost of goods, marketing budget, cost per click range, and estimated conversion rate then tells you how much money you’ll make or lose. This can be used as a guide to estimate how much to charge for a PPC management service based on a good campaign setup and your client’s revenue from your service, especially before spending money, estimating outcomes and setting up a brand new campaign.
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