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Rebuilding our PPC Mgmt Product Tiers / Pricing – Care to share your experience?
Seeking some feedback/ advice on how you have structured your pricing model for PPC management
Our clients aren’t in a vertical or niche – so thats fun.
Our client monthly spend ranges from $1,000/mo spend to $500,000 / mo spend – also fun.
Questions:
1. How many employees do you have on your digital team? (we have 9)
2. What is your typical client spend? Range is fine
3. Do you charge onboarding fee separately?
4. Do you have separate pricing for new / existing clients?
5. Do you charge a % of spend, flat rate, or hybrid management fee model?
6. Do you separate your time to build a campaign against your time to manage it month over month? For example, the cost / time to build a campaign can be very time intensive. Some agencies just eat this cost up front and then make better margins in later months. The issue is, if a client leaves, you are at high risk for not recouping that cost.I have more questions, but thats a good start.
Also – I am happy to share my experience below, if you are also considering a restructure in 2023
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1. How many employees do you have on your digital team?
\> we have 9 on our team
2. What is your typical client spend? Range is fine
\> 1,000 to $500,000
3. Do you charge onboarding fee separately?
\> Used to, but now it is built into our pricing for an audit
4. Do you have separate pricing for new / existing clients?
\> we do, but its very poorly defined. We decrease fees for some of our longstanding clients
5. Do you charge a % of spend, flat rate, or hybrid management fee model?
\> again, this varies. We have some with spend on our card and we charge a markup (dont love this)
Others we have fee + % of spend
6. Do you separate your time to build a campaign against your time to manage it month over month? For example, the cost / time to build a campaign can be very time intensive. Some agencies just eat this cost up front and then make better margins in later months. The issue is, if a client leaves, you are at high risk for not recouping that cost.
\>We do.. we have a Phase 2 build that follows our Phase 1 Audit & Plan products. In Phase 2 we account for the time to onboard, -
1 Reply
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Excellent format! Here’s our structure at Discosloth:
How many employees do you have on your digital team? (we have 9)
>*We have 3 full-time PPCers.*
What is your typical client spend? Range is fine
>*Anywhere from $10k/mo to $250k/mo is typical, although we have outliers with both higher & lower budgets. I’d say our average client is probably $50-100k/mo in Google Ads spend?*
Do you charge onboarding fee separately?
>*No*
Do you have separate pricing for new / existing clients?
>*In general, yes. We’ve tried to grandfather existing clients into old rates. I hate raising prices, although inflation is proving itself to be quite the monster. When we raise prices it tends to be with new onboards.*
Do you charge a % of spend, flat rate, or hybrid management fee model?
>*Flat rate. We’re on the higher end. Although it’s usually comparable to percentage of spend, just to be competitive with the market.*
Do you separate your time to build a campaign against your time to manage it month over month?
>*No, we have very low churn and most of our clients tend to stay with us for years. Campaigns are constantly being tested, experimented, updated so it’s pretty much built in.*
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How many employees do you have on your digital team?
> It’s me and my brother
What is your typical client spend? Range is fine
> Average is $30,000 I’d say with up to $250,000 a month currently, all E-Commerce
Do you charge onboarding fee separately?
> Yes, even though I assume it’s quite low being in the $1,000 – $2,000 range typically
Do you have separate pricing for new / existing clients?
> I have certainly increased my prices overtime and many of my very old clients still benefit from my “old” pricing, if that answers the question.
Do you charge a % of spend, flat rate, or hybrid management fee model?
> I have a somewhat unique model in the sense that it’s fixed but after a given time and increased complexity I may ask clients for a pay raise. Let’s say for example I took someone from $50k a month to $150k or even $200k+, with the additional complexity and responsibility I might knock at their doors and ask for a higher retainer. So far this was practically never declined.
Do you separate your time to build a campaign against your time to manage it month over month? For example, the cost / time to build a campaign can be very time intensive. Some agencies just eat this cost up front and then make better margins in later months. The issue is, if a client leaves, you are at high risk for not recouping that cost.
>No I don’t. Apart from the one-time setup fee in the first month I don’t distinguish between any of that stuff. Yes, future months are typically less work, but if you regularly aim at trying and testing new things it is somewhat balanced. Also, our oldest clients are with us for around 3.5 years now and our general churn is quite low.
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