How do PPC agencies charge?

Good Question!

This is one of the questions that always comes up when a business is looking for expert management of their PPC campaigns. And it is only natural for it to figure in the list of things to know for the business.

Is it the only ‘important’ question?

No (I most certainly hope not even for the business looking to hire a PPC agency).

Is this the deal maker or breaker question?

From my experience at 99 Robots, not at all.  If your performances can walk the talk, then it is only a need-to-know thing.

Every agency has its own method of charging for their ppc management services. Let’s check a few favorite methods being practiced by most of them.

Fixed Fee PPC Management Charges

It is a pretty straightforward fixed retainer per month method.  Agencies charging by this method usually offer a unique custom quote for each account.  The inputs that go towards calculating this are:

• Amount of efforts needed to setup & manage the account
• Goal to be achieved
• Scale of account (advertising budget, goal volumes)
• Targeted Scale of account (advertising budget, goal volumes)
• Team size needed to be allocated towards the day to day management activities

Fixed Fee (Slab Based) PPC Management Charges

This is similar to the Fixed Fee charges method in many ways.  The only major difference being charges vary on the basis of the monthly advertising expenses.  

It’s a very common method and also allows for the business to gain by paying as per current account scale initially and on the basis of growth moving forward.

The inputs that go towards calculating this are:

• Amount of efforts needed to setup & manage the account
• Goal to be achieved
• Current Scale of account (advertising budget, goal volumes)

Percentage of Advertising Spend

The most widespread method used by PPC Management Agencies, it allows a business to pay on the basis of actual spends towards the PPC ads.  At times there is also a slab based element in here with the percentage charged going down with an increase in advertising spends.

The best part of this method is that the charges your business pays is totally based on your exact current advertising spends, not a slab within which it fits, and most certainly not based on advertising spends to be achieved in the future (targeted scale of account.)

The inputs that go towards calculating this are:

• Amount of efforts needed to setup & manage the account
• Goal to be achieved
• Current Scale of account (advertising budget)

Add-on Costs

Oh yes, there are add-ons as well!

Some agencies might charge for creating creatives as well (very rare though).  But the most common add-ons are:

1. On-boarding fee
2. Landing page development charges
3. Conversion rate optimization charges
4. Conversion funnel development charges
5. Call tracking charges

Which is right method for you?

That’s the toughest part of this post.  Frankly, it is one with no definite reply to as well.  Each agency implements its charges based on what they feel is perfect for them to gain, maintain, and deliver efficiently to its clients. And finally it all comes to just one thing, which method works best for you while helping achieve the desired goals.

For a business looking to hire an agency, I would advise: Calculate the gains (growth, ROI, branding, etc.) for your business, and not the charges you pay for it and method an agency charges.

And hey, want to know how 99 Robots charges? Seek a Free PPC Management Audit & Proposal here!