There are many ways to pay your Google Adwords agency. You can either pay a percentage of your advertising budget or pay an hourly rate. While an hourly rate is a more affordable option for small campaigns, you’ll likely end up paying a higher fee if your campaign is more extensive. You also have the option of using a performance-based model, which is less common. You can also choose a fixed rate or management fee model, which both charge a fixed percentage of your ad spend.
Percentage of ad spend
There are three main types of Google Adwords agency commission. The fixed rate and the percentage of ad spend models are both good for larger budgets. With a fixed fee, you pay an ad management fee that will not change based on the amount of ad spend. Flat fees are tailored to your account’s unique requirements. You should expect to pay between 15 and 30 percent of the amount of ad spend per month.
Fees are often quoted as a percentage of ad spend, but this isn’t always the best option. A percentage of ad spend gives the agency more incentive to perform better. The management fee, which varies from agency to agency, is usually ten percent to twenty percent of the ad spend. Emerite.ca have minimum ad spend requirements, but some may have lower minimums for lower fees.
Hourly rate
The hourly rate for Google Adwords agency commission is less common than the flat rate. Many freelancers charge hourly for Google Ads work, ranging from $25 for a newbie to $150 or more for an experienced ad manager. This model doesn’t suit most agencies because it removes the recurring revenue model. In addition, many lawyers find it difficult to accept the psychological mindset of spending more on marketing campaigns than necessary.
Another drawback to hourly rates is that it involves high start-up costs. A new agency may not have optimized their processes, so they could waste many more hours than necessary on your account. Plus, you’d never know how many hours the agency actually spends on your account. Hourly rates are usually a good option for those who don’t need a dedicated account manager. However, it’s important to understand the costs before hiring a Google Adwords agency.
Fixed rate
If you are unsure which PPC management service to choose, you should be aware of the different pricing models. These can be confusing, but knowing the different options will help you compare plans and evaluate the value of each. Many agencies operate on a fixed rate model where they charge a certain percentage of your total spend. This model is popular because it is transparent and makes it easy to determine how much you spend and what kind of service you will get in return.
While some cheaper agencies can produce results, they often don’t have the time to give you the results you need. If your budget is large enough to cover a fixed-rate model, you can find a company that can manage your campaign efficiently and produce consistent results. However, keep in mind that higher fees can result in more management costs and increased number of keywords to track and campaigns to run. Some agencies even have tiered fee systems that vary according to your budget and level of expertise.