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I'm interested to see what pricing models are preferred by those with SEM agency experience. From the research I have done, there does not appear to be an industry standard. I imagine the model will depend greatly on the client, industry, B2B, B2C, budget etc. I am interested in feedback for B2B clients in niche markets with budgets around $10K. So what do you think? - Percentage model - Cost/keyword/month - flat fee - by the hour I need a model that allows transparency in order to openly discuss CPC. joeseale.wordpress.com/2008/02/20/ppc-pricing-model/ | ||
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March 3rd For larger clients who are looking to run across several different PPC channels (i.e. search engines, networks, and shopping comparison sites), I prefer to charge hourly for set-up, a retainer set from the agencies expected time to manage the campaign monthly, and a small percentage of the spend.
This method works well when you place the time initially to determine the required return parameters by each product and manage the account well enough to always hit the clients ROAS for the reporting period. Reply
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February 25th We charge by the hour since we seek clients who need campaigns of all sizes. Inevitably, with a flat rate, we would drive away those with smaller budgets and end up wasting time on campaigns that require a lot of work. However, we charge one flat rate for campaign set up, so that if the client ever chooses to manage the campaign on their own, we can hand it over to them.
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February 22nd I'm not sure there is a correct answer to this question. I can give you 3 examples from big companies with brands that you would be familiar with...
1)Service fee 30% of click spend. 2)Click package. $2.00/click. Example: for $400 they guarantee 200 clicks. 3)Flat rate: for business with a monthly budget between $2000 - $5000 they charge $500/month. It's really going to come down to what you believe in... I believe a flat rate is best. The others leave room for the "appearance of impropriety" imho. Reply
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