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What Is An Appropriate Ppc Fee To Charge Clients?


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4 replies to this topic

#1 kwikplunger

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Posted 01 October 2003 - 01:27 PM

Was wondering if someone can provide me with a fair and resonable method for charging clients for setting up and monitoring a pay per click campaign. Much thanks!

#2 Vertster

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Posted 01 October 2003 - 01:35 PM

There are a lot of different technique in use for this, but I think most firms in this business charge like a traditional agency would- adding a percentage onto the total media buy, at least up to a point. There was quite a bit of discussion of this at the SES San Jose, and that was the general feel I got. Generally this percentage goes anywhere from 10% - 25% depending on what is included.

We charge a percentage on monthly media buy, or a minimum if they are low spenders. And a fee at the beginning of a campaign for setup and keyword research. Copywriting/ Direct Response stuff is additional and billed separately.

Hope this helps.

#3 Scottie

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Posted 01 October 2003 - 02:50 PM

Welcome, kwikplunger! :propeller:

#4 SearchRank

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Posted 01 October 2003 - 03:14 PM

We charge per keyword or phrase as follows with a 25 keyword minimum:

Up to 50 keywords - $5.00 per keyword/month
Up to 100 keywords - $4.50 per keyword/month
Up to 250 keywords - $4.00 per keyword/month
Up to 500 keywords - $3.50 per keyword/month
Up to 1000 keywords - $3.00 per keyword/month
Over 1000 keywords - $2.50 per keyword/month

It's hard to do percentages with PPC like one would do with a banner keyword buy or sponsorships because you are managing listings. What if a client only wants to spend a 100 bucks a month at Overture and run 100 listings? That's a lot of listings to manage for a measly $15 bucks a month if you're charging the standard 15% agency fee.

We have a lot of small to medium size businesses as clients so our pricing structure is geared towards them. Now if a client wants to drop 250k a month on PPC with the same 100 listings, it would be very nice to grab $37.5k a month for yourself.

So I guess it depends on the budget and the amount of listings you have to manage. We're still playing around with pricing structure as I would imagine a lot of firms are doing as well.

#5 Cygnus

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Posted 01 October 2003 - 06:06 PM

Just as another perspective, I tend to lump everything together as a packaged price. My current client only really uses about 50 PPC keywords, but when I throw in the copywriting, technical SEO stuff, and link-building, I find that the PPC management "service" is subsidized by the link-building "service."

What does that all mean? Use activity-based management to determine the cost pools for each of your services in order to determine which is the most profitable per labor-hour, machine-hour, etc etc. Link-building them becomes my most profitable service, though it's a hard sell by itself, so by packaging the services together I can still retain a nice profit, all the while providing the client with the best service mix possible.

Sorry if that was a bit off-topic; I just don't want people confusing revenue and profit.

Cygnus




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