As a SEM freelancer I run across a number of clients that have dealt with click resellers in the past. It amazes me how much these companies charge and how little they truly offer their customers. One recent client received a quote from AT&T/Yellowpages for two programs. One was for 400 clicks for $899 and the other was for 170 clicks for $499. The client told me that the rep said that they would generate these clicks from a list of 20 words. Over $2/click AND getting very little reach? Does not sound like a very good deal. The campaigns were not even going to be geo targeted to the radius around the client's business.

AT&T/Yellowpages is not alone in their gouging of people who do not know any better. Look at Web.com's programs. They offer 30 clicks a month for $59 (plus a one time set up fee of $99). I actually spoke to them and they use a list of 10 words or less to get these clicks. Networksolutions.com offers a plan that is $50 (plus a one time set up fee of $99) for 125 clicks. They offer a management service feature as well. I typed in my budget of $400 (the minimum) and was given a quote of $200 as an ad budget and $200 as a management fee.

I know companies need to make money, but this pricing model seems incredibly out of whack. As a SEM freelancer, I know it is difficult to come up with a good pricing model. It end to look at the amount of revenue that a business can generate through their online business and their budget and try to come up with a management fee that makes sense for both of us.