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Google ads agencies/freelancers, how do you price according to avg CPC?
Posted by on September 25, 2025 at 4:59 amIf I were to run an offer: minimum 10 leads per month”, how would you price according to the avg CPC, and calculating conversion rate from that.
For example: if avg CPC is $10, lead conversion rate is 20%, and you’re offering a minimum 10 leads per month, your breakeven would be $500. Then you would keep the difference for whatever margin you want.
Does anyone run offers like this?
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1 Reply
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Nobody in his sane mind runs offers like this.
Google Ads experts charge a monthly retainer. That’s it. -
The math checks out—$10 clicks at 20% CVR is $50 a lead—but costs can change fast and you could lose money.
Most agencies just charge a % of ad spend or a flat fee. A pure pay-per-lead deal is risky. Lead closed? what is nothing closes?
It’s safer to charge a retainer and promise a minimum number of leads, adjusting if you fall short.
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You don’t control:
* The minimum CPC needed to compete in your market.
* Whether a visitor converts or bounces.
* The search volume in your market.Your offering of a minimum number of leads at a fixed price requires control over these things. Promising to deliver results based on things that are out of your control is a recipe for grumpy clients and your own unhappiness.
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When selling leads, most companies charge a flat price per lead. Just estimate what a lead will cost you… sounds like $50/each and mark it up to cover profit and overhead. Most importantly, ensure you build in enough to cover the inevitable variability you’ll see from seasonality and other changes in campaign performance.
If you want to package it as a “number of leads” you can just multiply that by 10x or whatever.
Most companies doing this will put up a site and advertise in a specific niche like medspa services, appliance repair, etc., and then sell those leads to several real businesses that offer those services.
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The problem with this approach is what happens when Google goes off the rails and your conversion rate tanks. It happens. Alot.
So you sign a deal for the 10 leads in your example, say you sell them at $100 since it’s costing you $50 to get. Well what happens when your CPA suddenly jumps to $150? Your COGS is now $1500 and your revenue is $1000 and you’ve got a contract to deliver those results.
You can’t guarantee results. Nobody can.
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That is a difficult offer to work with. Who can you set up an offer for services to based on the assumption that you will get a 20% conversion rate? That is pretty high and difficult for both the agency and the biz owner.
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Highly unlikely anyone who knows what they are doing would work for this pay structure
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