Monetizing AdWords

[Maginot]

Up until this point I have stayed away from Social Media, Webdesign, SEO, and PPC. Local Search only. It is hard enough for my clients to grasp "listings", staying on message and proving deliverables has grown my business quite well.

But it seems as I grow and my clients grow they want a turnkey operation, like Maginot, to take control of other aspects of the online marketing. Some of my clients have already gone to third parties who have decided to set up different business phone numbers (tracking numbers) for different mediums. (One # on FB, different # on website, different # on craigslist, (and now they want a different number for G+ which I refuse to do).)


I have already fashioned a service package for Facebook management. It is rather open ended depending on the amount of reach the business wants to "boost" the posts and page view. And I am charging very little for the set up of facebook ads.

Some of my clients are willing to spend $1000-2000/m on ads. So the question is how do I make my cut for setting up adwords for my clients? I have seen some guys go as low as 4%. I dont think that would even be worth my time.

In a given year, that client will spend $12000-24000, at 4% that means I will only receive $480-960 for 12months.

I have seen some agencies charge ~$80/hr, that would be equal 6-12 hrs of billable hours to resemble the 4% model.

When it comes to advertising through other mediums (paper, TV, radio) 8-10% margins are a steal. So the question is, whats the best terms of service that is fair for both parties and caters to large and small budgets?

 

[Linda Buquet]

Sorry I don't have any experience managing Adwords or know about the pricing models.

But I'm sure some other members do, so hopefully you'll get some replies tomorrow.

 

[Eric Rohrback]

You either do a flat fee based off of media spend ranges, or do a percentage cut. 4% is way too low - shoot closer to a range between 10-20%. Alternative methods is to charge by lead, since everything in Adwords is trackable. If it's a good enough vertical with a high lifetime customer value, you could charge a pretty decent amount per lead you bring the business. There's a ton of ways to do it, but it really all depends on how good you are with running Adwords campaigns (eg; delivering qualified leads).

What do you think your clients would value each lead? That's not a closed sale, since that would be on them to close the lead.

 

[Tim Colling]

...
What do you think your clients would value each lead? That's not a closed sale, since that would be on them to close the lead.

Interesting. In that scenario, what constitutes a "lead"? Each click?

 

[Eric Rohrback]

No. You need to track conversions - both web form and phone calls. There's a ton of software out there that will help you do that. Actually Adwords has gotten pretty good about recording that data internally. It's all pretty easy to set up in Google Analytics.

That will help you develop stronger landing pages and drive users to the correct conversion points on the site as well. Brings more value to your partnership with your clients.

 

[MarketingGiant]

We charge 30% of budget unless it under 1k then its $500 minimum per month. But we analyze & make updates to each campaign everyday so its a lot of work. Remember you pay for what you get, quality service & results is not cheap!

 

[Dave]

I like charging a flat fee for adwords. I look for a set up charge. Then a flat fee.

Then I go with an education package for them to DIY. Some want the diy package. heck if you get it down over time...it may not change much. Then its mostly reporting.

Another way is flat fee for xxxx amt of work and then an hourly fee if it takes up a lot more time.

On charging for leads. Hmmm Different kinds of smb's and industries will have VERY different conversion rates. We work in a couple of industries.

In one we have a range...which we really work to beat via salesmanship. ooooh but the value of a lead vs a sale. Very large difference.

In another...if we bring a lead to a certain point...we have a huge % in closing...but we have to get them from lead through a couple of steps.

man...for good value on charging for leads...I'd like to know a lot about the business.

If I were working to generate lots lots lots more leads...I might cheapen the process.

 

[JoyHawkins]

We go with a minimum management fee of $199/month or 10% (whichever is higher). Here is a really solid article that talks about different pricing models:

PPC Management Options ? Are Your Fees Inline With The Advertiser?s Goals?

 

[Tim Colling]

We go with a minimum management fee of $199/month or 10% (whichever is higher). Here is a really solid article that talks about different pricing models:

PPC Management Options ? Are Your Fees Inline With The Advertiser?s Goals?

Do you also charge a set-up fee?

 

[JoyHawkins]

Nope. We do require a 3-month commitment though.

 

[Eric Rohrback]

Set up fees usually deter sales. I'd recommend going with the contract length commitment instead of a setup fee. Basically comes out to the same price (if not a little more), but it seems like less in the short run because the month 1 total charge is less.