How Much Do Agencies Charge to Manage Adwords?

What is the typical cost of having an agency manage your Adwords account?

You’ve come to the right place.  99% of the agencies we know charge fees to manage Adwords accounts for clients using one of the following models:

  1. A flat fee of $250-$1000
  2. A 15%-20% of your ad spend
  3. A performance-based model (i.e. $30 per conversion)
  4. A mixture of the above

From the client’s perspective, what are the advantages and disadvantages of each Adwords management fee structure?

Flat Fee
Pros
  1. You know exactly how much your bill will be each month
  2. You won’t have an Adwords manager trying to get you to increase your spend
Cons
  1. Less of a motivation for your Adwords manager to get down your cost-per-action and overall account performance.  If your manager is less than stellar, he or she may do just enough to keep from being fired.
  2. We often see more complacency as time goes by

 

Percentage of Ad Spend
Pros
  1. You know exactly how much your bill will be each month
Cons
  1. Again, you run the risk of having someone unmotivated to get the most out of your account
  2. They want you to increase your ad spend so that their revenue goes up.
  3. Again, this model can lead to a PPC manager becoming complacent over time

 

Performance-based
Pros
  1. You have a higher chance of having a proactive, motivated manager
  2. Much less likely to have the account neglected over time
Cons
  1. If your metrics are tied to conversions, they also want you to increase your ad spend
  2. Much of the results of an Adwords campaign are out of the reach of the person managing it.  If you get a new competitor with a monthly budget of $45k, your results are going to diminish. Since the agency is taking on this risk, they are probably going to charge more than they would for a “safer” option such a flat fee or percentage of ad spend.

 

How to mitigate some of the cons of each fee structure

Ask a lot of questions

We wrote a piece entitled “5 Questions to Keep Your Adwords Manager Honest.” Read it and ask these questions.

Insist upon having “read” privileges” to the account

This will allow you to log into the account and see what is being done.  You won’t be able to make any changes, but you will be able to see what changes have been made to the account.  Changes signal active management of the account, and the information you see will allow you to discuss the results of the changes with your account manager.

How to check the changes to your Adwords campaign
  1. Log into Adwords
  2. Click on “Tools”
  3. Select “Change History”Check changes made to adwords account
  4. Set the date range that you want to check changes for in the upper right part of the screen

cost of adwords agency

There you have it.

I hope that this post will make you a little more comfortable about hiring an Adwords agency. If you would be interested in talking to someone on our team about having Sagapixel manage your Adwords campaigns, please reach out to us through the contact form on the sidebar to the right or call us

 

Was this article insightful? Share it!

Share on facebook
Facebook
Share on google
Google+
Share on twitter
Twitter
Share on linkedin
LinkedIn

Related Posts

Call Now Button