Standard PPC Management Service Fee Structures


The PANTHER PPC Management System can be integrated with any of the following management service fee structures for as little as $2,000/month additional per "LSI cluster".

Per Keyword/Phrase Bid


The monthly fee for this type of PPC management service is based on the number of keywords managed.


Example: If $15 per month per keyword is charged and there are 100 keywords in Google Adwords and 75 keywords in the Microsoft adCenter, the management fee is $2,625.


The disadvantage is that your PPC budget will increase as you add more keywords/phrases. The additional costs may prevent some companies from seeking "long-tail" keyword/phrases that may not generate a lot of traffic, but may convert very well.

Percentage of Spend


With the Percentage of Spend fee structure, PPC management fees are calculated based on how much you spend in your PPC accounts. Customary PPC management fees range between 15%-30% of your total PPC ad spends.


Example: With a $10,000 per month spend with Google Adwords and Microsoft adCenter combined and the PPC management fee is 30% of your total ad spend, the management fee is $3,000.


The disadvantage to the Percentage of Spend model is that it may not encourage your PPC Manager to manage your ad budget effectively.

Hourly Rate


With the Hourly Rate PPC management fee structure, fees are based on the amount of time spent managing your PPC accounts each month.


Example: With an hourly rate of $150 per hour and the time spent on managing the PPC accounts for the month is 20 hours, the management fee is $3,000.


The disadvantage to the hourly rate model is that it can encourage inefficiency; more hours equals larger management fees.

Pay for Performance


With the Pay for Performance PPC management fee structure, you pay the PPC Manager a pre-determined fee per established metric.


Example: A metric could be $7.00 for each phone call or email you receive or 15% of each sale generated from the PPC campaign. There are numerous options available under this model.


The disadvantage to the Pay for Performance model is the difficulty in determining a metric that can easily and accurately be tracked. A fixed fee per conversion metric is not a sound metric for billing purposes because landing page copy, design and call to action component modifications are not always available to the PPC Manager. With conversion rates tied to these components getting compensated could become a nightmare.

Flat Fee


A Flat Fee PPC management structure is usually a straightforward PPC management fee structure to follow. Once the scope of the PPC management service has been defined, monthly-based fee is calculated.


One of the drawbacks with the flat fee model is when the scope of the PPC management service is not clearly defined, questions can arise whether or not a specific task is included within the fees.



Goldranking is happy to structure a PPC Management Service Proposal with flexible pay options that best meets your needs. Please call or contact Goldranking right now at 949-609-9382.


Nikki HM Jackson is a PPC Specialist certified through the Microsoft adExcellence Program and as a Google Adwords Qualified Advertising Professional certified through Google's certification program.

Optimizing and Managing SEM



Why Is Your New Google Adwords Account Not Producing Vast Amounts Of Traffic?

By Nikki HM Jackson
July 7, 2007

The number of phone calls that are coming in to Goldranking requesting Google Adwords help has been consistently increasing. These calls are from companies that have recently opened new Adwords accounts or companies whose Adwords accounts are hitting the level where the rate of return is flat. Many are asking for help to increase clicks, reduce costs, and to improve their ROI. New advertisers are concerned that their new Adwords accounts are not generating impressions nor clicks. The others are looking for help in getting more sales from their spend.

The reason that the ads are not triggering impressions or clicks, or triggering very few, is in most cases the accounts have not accumulated Quality Score. One of the qualifying factors in Google's Adwords algorithm is that it is based on accumulating Quality Score votes which are a combination of how your ads have been performing over time relative to the account history of your competitor's ads. Discounting ads from trusted sources and charging new advertisers, unproven advertisers, or abusive advertisers premiums to be displayed has become one of the many ways that Google has found it necessary to protect it's relevancy and usefulness to it's constituents; it's searchers.

Ads with a high clickthrough rate will have a high Quality Score. Ads appearing in the top positions will have a higher clickthrough rate. Ads with a high Quality Score will also have a dramatically lower bid minimum requirement. If your ads are not exceptionally relevant, you will pay a higher minimum bid to make up for the lack of ad relevancy.

New accounts require a vigorous bidding strategy. Overbid as high as possible as you will be competing against the best ads that have developed over time in your niche. Accounts that do not have history must budget for as large a spend as possible and higher bids in order to establish a good history. Tip: As a new advertiser limit your daily maximum spend but enter a very high maximum bid value.

We understand how frustrating this can be. But for sanity's sake consider applying the following general rule of thumb for getting a new account into rotation - the first 3 months spend as a testing period and understand that your return will more than likely be minimal. Then consider the next 3 months as the building phase and then after 6 months high returns will kick in.

Additional Adwords and Landing Page Optimization Tips
  • Submitting a Google Sitemap, semantically coding your website, and correcting navigational issues are all highly recommended for increasing Quality Score.
  • Break down your list of keywords into respectively individual ad groups (familial clusters).
  • Use the same ad text from your ad exactly in the META description tag on the target landing page.
  • Try placing all the keywords per ad group into the content of the target landing page


References:
http://www.google.com/adwords/learningcenter/
http://adwords.google.com/support/ - Quality Score is the basis for measuring the quality and relevance of your ads and determining your minimum CPC bid for Google and the search network. This score is determined by your keyword's click through rate (CTR) on Google, and the relevance of your ad text, keyword, and landing page.


For a customized and detailed PPC campaign proposal call (949) 252-5363 or request an online Pay Per Click PPC Request For Info.






Contact Nikki Call (949) 609-9382

We welcome your questions and the opportunity to tell you more about search engine optimization, and show you how we can "Turn Your Web Site To Gold"


Request For Information - PPC Management Services

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