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I'm trying to get a general idea on what in-house PPC marketers are seeing these days in terms of agency fees.

Can In-House SEM Managers or Paid Search Managers (current or past) shed some light on how they like to deal with Agency Fees for PPC and what you've seen to be the trend on how agencies base their fee (% of spend, %of gross revenue, flat monthly fee, etc.).  If by % of spend, can you give me a range of what % you pay to your agency or what % range you've seen on agency proposals?  Thanks!

I am about to have to write an in depth PPC proposal for my company for the 2008 PPC campaign our 3 companies are going to embark on. Entailing everything that will be covered from A to Z. I would appreciate any advice or links to documents that might help me.

Moving from an SEM Agency to an in-house position was an interesting and sometimes trying transition. I spent 7 years working with others who shared my knowledge of the online marketing world. When I moved on to an in-house position with in an industry that is just beginning to embrace the Internet I became aware of how little the general public knows about SEO, SEM, and online marketing. Even using terms like SEO lead to blank stares and glassy eyes.
I learned that I not only had to report my what I was doing to my superiors and co-workers but I also had to teach them what the terms I was using meant. Some get it and some are still a little lost whenever I talk. I want to develop this group to help other in-house SEM's become better at what they do but also offer a support group for those of us who need to talk to a few like minded folks from time to time.
If you are an in-house SEM or would like to learn more about it please join the group and offer your experiences and advice.