How Much Does PPC Management Cost?

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If you want to run a successful online business, then PPC campaigns and programs like Google Adwords need to be in your plans. It’s a necessary evil we all must go through to bring in that new traffic.

The problem here is, business people aren’t necessarily marketing people. Especially when small businesses are involved. Pay per click advertising? Campaign structures? Bidding on keywords? If that all sounds like gibberish to you, then you’re going to need to need some serious AdWords help.

Even if you stumble through setting up a great PPC campaign, you can’t get the most out of it without managing it properly. That takes more time and knowledge than most assume. It’s about time to turn the nitty gritty details over to a passionate PPC pro would actually enjoys dealing with them.

Hiring a PPC manager is a great way to prevent accidental wasted money in your account. But how much will you actually be paying them to handle your budget? Here’s an idea of how your PPC management pricing could go.

Percentage of Ad Spend

This is a bit traditional. The agency gets a percentage of your budget, with the intent to increase that budget as their work brings in more revenue. This PPC management option is great when you think about the extra work often needed when things get competitive. Plus, it allows your PPC manager to reward their hard work when your spend goes up. An increase in spend must mean an increase in ROI, so they must be doing something right…right? Just be wary and keep your eye on a slowly increasing budget. Make sure the numbers aren’t being inflated a bit just to increase the amount your PPC agency is putting in their pocket.

Flat, Monthly Fees

This option is a simple, straightforward payment plan that’s determined based off of a percentage of your monthly spend. Let’s say you’re spending $50,000 and your PPC agency has a flat monthly fee of 10%. Your cost for PPC management would be $5,000 per month.

This is mutually beneficial. You have a set amount of money to spend, and the management can be charged up front. Otherwise you could be waiting until the end of the month to determine how much was spent and how much will be paid. When you have so much to deal with as is, it’s nice to always know exactly how much you’ll be paying for PPC each month. It’s a great option for smaller businesses with tighter budgets.

Pay by the Hour

You’ll be hard pressed to find an agency that charges you hourly, but it’s worth a mention if you’re looking at smaller agencies or a PPC contractor. The biggest financial risk here is trust. As with most by-the-hour payment plans, you want to make sure the 15 hours of AdWords management you’re paying for isn’t actually 5 hours. You could remedy this by making your goals clear and asking for a detailed hourly report at the end of each month.

The huge benefit to an hourly PPC management arrangement is that you have the choice to pick and choose what is done. If you’re planning on being really involved in the account, but need some help setting up a new campaign or coming up with a strategy, you can turn to your hourly PPC professional to lessen the workload.

You can’t make money without spending money. It’s what happened when you started your business, and it’s what has to happen when you start pursuing PPC advertising. The more you put into it at the start, including hiring someone to manage it for you, the better off you’ll be once things take off and start bringing you in those sweet new leads.

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Roger Parent

Article by Roger Parent

Roger Parent is the Owner and Founder of Digital Position. He's been a developer, designer, and online marketer for almost 10 years spanning a variety of markets. He's also a very "passionate" (overly competitive) volleyball player.

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