PPC Management

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PPC Management: Best Pricing Model

Unlike our competitors who charge a percentage of your Marketing budget, or provide you with a software application that leaves you doing all the work, we take a different approach to PPC Management.

Our philosophy is that keywords should be selected and managed only if they convert and achieve your business goals.

Most of our clients have 100-200 keywords and we manage them to achieve a target CPA.

We assess a fee of $15 per month per keyword, subject to a minimum management fee of $1,750 per month. This amounts to less than $1 per day per keyword.

We believe this approach to PPC management is superior as it removes a conflict of interest for the vendor and it encourages clients to focus on conversion.

In comparison, there are 2 other popular PPC management models:

Percentage spend The prevailing model is a percentage spend model where you pay a company a percentage of the monthly spend to manage your bids. This fee typically ranges between as low as 5% to as high as 30%, subject to monthly minimum. Hence, if you are spend $10,000 on Google and $5,000 on Yahoo! Search Marketing, their management fee assuming 15% would also be $2,250. The major flaw in this model is it does not encourage the vendor to manage your budget effectively. In fact it encourages the vendor to spend more as their management fee is tied to the spend - not conversion performance. Worse yet - bids keep increasing year after year - which means their fee keeps going up.

Pay per performance Under this model you pay the vendor to achieve a specific outcome. Usually it works with a flat fee for action - as in $10 per conversion. On the surface, this approach seems ideal until you learn the tail is wagging the dog. For example, we do business together. We are now sending you customers and you are paying $10 per new customer. All of a sudden we are approached by your competitor who offers $12 per new customer or a 20% premium to your fee. Get the point?

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