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PPC Agencies: If you package PPC management, what defines your packages? Eg. Number of campaigns, dollars of spend, etc? How do they correlate?
For example, if you have bronze, silver and gold tiers, what distinguishes one from the other? Is it just a lower percentage fee on higher spend brackets? And you do as much as you can fit into x hours of work regardless of spend?
Or do you limit the packages, maybe at least the smaller ones, to so many campaigns or keywords? Eg if you spend under 10k/mo, we create/optimize up to 10 campaigns. From 10k to 20k, 25 campaigns etc?
If it is not number of campaigns, or not only, what else do you use to distinguish packages/service levels? -
5 Replies
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We do it based on hours and we have an hourly rate. Once we get over a certain ad spend we then add a % of ad spend few also. We make that call depending on the complexity of the account
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We charge a flat retainer, based on campaign budget and complexity. It’s usually custom quoted.
However, we have a small business package (for clients who spend less than $15,000/mo on Ads) and we charge a tiered flat fee which is based off of ad spend (1k-5k, 5k-10k, 10k-15k).
We do not limit number of ad groups/ads/etc. Usually for smaller campaigns, the ad budget itself determines how complex the campaigns can get and still perform.
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For the agency I work at full-time, there’s always two people assigned to an account, and we charge a flat fee based on level of total ad spend; we support paid search (Google, Bing) and paid social (FB/IG, LinkedIn). Our services are geared towards overall demand gen, so part of the package includes CRM funnel analysis and optimization, in addition to in-platform work. Some of my clients have 5-10 Google Ads campaigns, others have 40+.
For my own freelancing (those clients I choose to take on who are outside my full-time job’s customer profile), I now charge $150/hr, ongoing, with estimates on total hours needed for maintenance/projects.
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We use a flat fee + performance bonus, based on goals reached. We use this approach for each platform (Google, FB, Bing, LinkedIn, etc). We require 90-days out the gate. We guarantee ROI on ads, or no fee is paid, ever. We can guarantee results, because we build strategies that supports the entire customer journey (not just the click, but post-click). Ads traffic is “easy”, but creating real growth revenue is more challenging and is where the real $$$ lie (both for clients and our agency). The value is undisputed, and we all win! 🙂 (but, the clients must meet certain criteria, e.g. have a sales process in place, and that is proven)
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I always focus on value rather than commoditized pricing.
There are a lot of low budget accounts with high margin products or services.
If you were to charge these by ad spend or # of campaigns you would leave a lot of money on the table.
In the close meeting I share a calculator where I forecast their sales, revenue, and profitability.
This way, when I deliver the cost of the retainer the focus is on the benefit rather than service itself.
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