What is FAIR and APPROPRIATE PPC Management Pricing?

Before we delve into this subject.

If I could GUARANTEE that by hiring HOP2THETOP, you would see a 300% or more lift in revenue, within 30 days, no questions asked, would you hire us?  

The fundamental issue with the question of Pay Per Click Management prices is that something, or a service, like managing Google Ads, is only worth the value of what you going to see from that service.

First look at opportunity costs:

What does it cost you to personally manage your ads, whether you are the business owner, executive, or other team member?  Do you have the TIME to manage PPC ads on your own?  And by giving your ads infrequent attention, do you really think you are getting the best ROI possible?  So the costs of INACTION already set the foundation for making a PPC agency hire.

Second look at what type of track record that agency has.

Do they have a measured track record of working with companies in your industry, and can demonstrate how they have helped companies similar to yours, to grow, and become more profitable?  If the answer is yes, that potential value has increased significantly.  You don’t really want an agency that has never worked with your type of business.  Not to say it cannot be done effectively, but the likelihood is less.  Now, if you have a very unique business model, let’s say you install EV charging stations, for example, don’t expect to easily find a PPC vendor who has managed PPC ads for EV charging stations.  But, for example, if you are a law firm, it will be easier to find a company like Hop2TheTop, that has managing many PPC campaigns for law firms, successfully.

Next, look at the proposed services. 

What is included?  Consultation on landing pages?  Creating pages?  Managing multiple ad platforms?  Will there be regular optimizations?  Reporting calls?   What will the PPC agency bring to the table in terms of deliverables that demonstrate they will be steering the ship effectively.  You don’t need to know every single step they will be taking, but you should be able to get an understanding of their overall process and some of the fundamental tasks they will be conducting.

Considering the pricing structure.

Is the pricing TRANSPARENT?  Or does the agency charge you 1 big fee for the ads + their fee, with no way of knowing exactly what is going towards the ads, and what is going in their pockets?  NEVER, and I mean NEVER, work with an agency that does not charge their fees separate from the ad costs.

Different Types of PPC Agency Pricing Structures:

i. Percentage of Ad Spend

You are probably familiar with this option.  Many agencies do charge % of ad spend, and there is nothing wrong with this approach.  This model however is not great for lower budget accounts.  For example, if you have only a $2000/month budget, and the agency charges only 10%, that’s just $200.  Do you really think they will be able to dedicate the appropriate time to your account for just $200?  In this case, you WANT the agency to charge more, like a flat rate, so they can dedicate the right amount of time and energy.  But for higher budget accounts, this can work really well.  It allows for easy scaling.  The agency knows if they perform well, then you will authorize a higher budget, and they make more.  It’s truly a win win.

ii. Tiered Flat Rates

Similar to % of ad spend this is also a good model.  It incorporates some performance aspect, in that if you spend a lot more, the fee tends to increase.  It might be more desirable for companies that want predictable fees for vendors, and so if you are considering working with an agency that proposes % of ad spend, and prefer a flat rate model, you can always request it.

iii. Base Flat Rate + Performance

Another good option is the base flat rate plus performance.  This is where you agree to a reasonable flat rate to cover the fundamentals of managing your account, but then there is a variable performance incentive added, that kicks in based on the growth achieved.  This also can be a win, win, and similar to % of ad spend, provides extra incentive for the agency to exceed expectations.

iv. Non Variable Flat Rate

This is not a great model in our view, as you agree to a specific rate, which never changes regardless of if budgets increase, responsibilities increase, etc.  And while it might be tempting to try to get an agency to agree to this type of model, it does not benefit anyone.  You sacrifice the long term performance for getting an agency to cut corners and agree to rates that fit within a low budget.