Prices for PPC Management
PPC management pricing model ranges depending on your desired method. PPC companies will typically have several fees before you are up and running. Most of them require an initial set-up fee of anywhere from, $250-$1,000; this allows them to go through basic campaign strategy, get to know your business and develop a campaign strategy.
Management Fee Model
Many online marketing companies will offer a monthly fee pricing model. This management fee will typically run between 10%-20% of ad spend. Be weary of companies that are offering rates lower than the average, 15% of your advertising spending. This percentage fee is based on the monthly spend per account. Companies can spend anywhere from a few hundred dollars to thousands; however to see a measurable ROI it may take a bit more investment.
Some PPC firms will work with you directly, and request a % of profit from their PPC revenue. This model is known as “pay per performance,” if an affiliate generates no sales there is no revenue for the management company. Typical PPC companies will look to gather anywhere from 5% of PPC revenue to 10% of PPC profits for their services. This makes sense for many companies because they are directly linked to performance which is quantifiable for many small businesses. Vinny Lingham provides an excellent graph on the typical inputs and variables that go into a PPC profit sharing pricing model.
All in all, the pricing model that you choose is largely based on the scale of your operations. If you want a PPC service firm to be strictly tied to ROI, then PPC profit sharing might be the best option for you. On the flip side, if you are just looking to test the waters and see if PPC is right for your business, think about management fee pricing models. If you are looking for price quotes from PPC vendors, click here.