A Simple Pricing Approach

No doubt that you've seen or heard pricing structures that take 10-15, even 20% of your Google Advertising Budget as commission. We feel that our value should be equal to the work that we put into your campaign, regardless of how much you are spending. That's why we have a simple pricing structure. It's easy for you to keep up with and easy for us to manage. Besides, you want to keep your money to reinvest in your campaign, right?

Our Pay-Per-Click Campaigns include a one-time research & setup fee of $10 per keyword. Our price to manage your campaign is $4/keyword/month. So for a campaign of 50 keywords (the minimum) the prices would be $500 setup and $200 monthly management.

THE PROBLEMS WITH OTHER PPC PRICING MODELS

The Percentage-of-Spend PPC Model
It may seem like it would make sense to scale the management fee according to the size of the campaign, by charging a percentage of the monthly spend. It's true this is a popular approach to pricing a PPC campaign. There is one major problem with this approach. With a percentage-of-spend pricing model, the PPC consultant is encouraged to make the campaign as big, and as expensive as possible. PPC consultants who charge a percentage-of-spend are paid more for a $20,000 campaign than they are for a $10,000 campaign, even though the amount of work might be the same. You certainly do not want your PPC management to be rewarded for wasting your money.

The Flat Rate PPC Model
So why not simply charge a flat monthly rate for PPC management? In this case, the PPC consultant is encouraged to do as little work as possible. If the campaign would benefit from additional keywords, as they often do, the consultant is not compensated for the extra work that is required. Consultants would rather keep the campaign as small and as simple as possible to protect their profit margins.

What is the Best Solution?
Charging on a per-keyword basis allows your PPC consultant to be paid for the work they perform - no more, no less. If the campaign would benefit from more keywords, more work is done. There is an increase in the fee, but the increase is proportional to the amount of work required, unlike a simple increase in budget (Percentage-of-Spend model) that may or may not require additional work.

The Per-Keyword approach is better than the Flat Rate model as well because it is somewhat tied to the success of the campaign. If additional keywords would help the campaign, then the PPC manager will earn more for the work being performed. With the flat rate model, management has no incentive to create additional keywords, since their profit margin would only go down. They are encouraged to do nothing with the campaign, while the Per-Keyword approach encourages PPC managers to make the campaign as effective as possible, so that additional keywords are needed. As the campaign grows and becomes more successful, managers are happy. It creates a win-win approach.