Outsourcing PPC Rates: How Should You Pay A PPC Agency?

Are you keen on getting the most out of your Google Ads accounts? Do you ever wonder if your in-house team (or lack thereof) could be doing more to help drive more qualified traffic to your site through paid advertising, but not sure what you should do about it?

Managing a Google Ads account can be tough because there are a lot of variables that need to be considered. Everything from keyword research, ad copywriting, landing page optimization and other advanced settings can all have a significant impact on the performance of Google Ads campaigns.

Many small business owners and entrepreneurs are moving to outsource their Google AdWords marketing campaigns with a trusted Google Ads management agency instead of hiring an in-house team. There are many benefits to trust your online advertising with a Google AdWords management company, but one question many companies have about the process is how much they will pay for outsourcing their PPC marketing.

Well, to help you find the perfect solution for your company we are sharing some of the most proven and time-tested pricing plans and policies.

This information will help you to be more informed and take a decision that is based on knowledge rather than being driven by gut feeling and emotions.

1. Hourly Pricing

The first type of PPC outsource pricing that some companies look for is hourly Google Ads management. While it is not ideal, you can use hourly PPC advertising budgets if your company does not need a constant amount of Google Ads management each month, and are just looking for one-off maintenance and light control.

Hourly PPC outsource pricing is also a good option if you want to work with beginners to save money and reduce the initial costs of PPC marketing services. Hourly pricing helps PPC agencies forecast how much they can make each month, and it can minimize the chances that you will pay more than you anticipated.

In most cases, hourly AdWords management services pricing is not the best model to use because it is not as transparent as other pricing models. Also, hourly outsource PPC pricing can limit the amount of time the PPC management companies put into monthly optimizations because once the bucket of hours is used, they will not continue to monitor your campaigns.

2. Percentage Of Ad Spend

Percentage of ad spend is a second pricing model that you can look at when outsourcing PPC marketing. This pricing model means that you will pay a Google Ads management agency a management fee based on the amount of money you spend each month on ad spend.

This pricing structure is often used on Google Ads accounts that are more complex and spend a lot each month. Average monthly ad spend based on your industry, but in general, accounts that spend over $6,000 each month are often eligible for a percentage of ad spend pricing model.

Most Google AdWords management agencies enjoy using this pricing model because it will scale with the complexity of your accounts and future marketing initiatives that you may implement in the future.

Companies love this pricing model because it makes it easy to budget each month without worrying about going over an agreed upon amount for PPC management. Since the marketing agency will get paid based on the amount that you spend, you should expect their management fees to be 10-20% and spend.

This pricing model is preferred by most companies and agencies because it is a transparent way to outline expectations based on the size and complexity of individual accounts.

Since Google management fees are based on your monthly ad spend, most agencies will not take on clients who have low monthly ad spend each month. For example, if you spend $1,000 each month and the agency will get 10% of ad spend, this means the agency will only receive $100 for PPC outsource management.

Be sure to talk with a potential Google AdWords management agency before signing a contract to ensure they will conduct ongoing optimizations and outline the scope of work each month if you want to use this type of payment structure.

3. Flat Management Fee

The third type of Google Ads management fees that you should consider when outsourcing PPC is the flat management fee model.

Flat rate or flat management fee means that you will pay a fixed amount to your Google Ads management agency each month regardless of the amount of monthly ad spend. This fee is often established at the beginning of the contract, and you should have management fees in writing along with the amount of monthly ad spend that you expect your PPC agency to optimize.

This type of PPC outsource pricing model is ideal if you have a limited marketing budget, and you do not have a high monthly ad spend. If you spend less than $2,000 each month and want an agency to help you each month with optimizations and reporting, then you should consider a flat management fee approach because it will give your ongoing business support at an affordable rate.

4. Management Fee Plus Percentage Of Ad Spend

The fourth pricing model that you can consider for PPC outsourcing is to go with a management fee plus percentage of ad spend. This pricing model is a combination of the previous pricing models to combine a flat management fee plus additional fees based on how much your PPC ads spend each month.

This pricing model is more complicated than choosing a flat management fee, or a percentage of ad spend, but this option is a right choice if you want to keep a marketing agency on retainer each month for a lower cost while also giving them a kicker to overcome the reduced monthly spend.

You will likely find that most Google Ads management companies will not use this pricing model because it is unnecessarily complicated. Instead, the agency will ask to use a flat fee or percentage of spend for their PPC outsourcing agreement.

5. Performance-Based Pricing

The final Google Ads outsource pricing model that you can consider is the performance-based pricing option. This Google Ads management pricing model removes lots of risk from your company and puts it on the PPC marketing agency since they will only get paid based on how well your ads perform.

This pricing model is often used in e-commerce and industries with high margins, and since you won’t carry any risk, you can be sure that the marketing agency is going to be paying lots of attention to your account.

Since the PPC agency that you outsource PPC marketing to will be carrying all the risk, you should expect to pay a healthy amount of each sale to the agency that you choose.

Monthly lead volume is the main factor that drives the earning capacity of the agencies. Agencies who are ambitious and result-oriented would not mind being a part of performance-based pricing policies.

This could be the right way forward as and when the business grows because both the clients and the agencies will be benefited. Hence, it is a win-win situation.

What Is PPC Outsource Price Best For Your Business?

Each of the above pricing systems has its own advantages and benefits. However, you have to choose the right one taking into account various metrics.

These include more excellent value for you as a client, increased lead traffic, and the goals and value systems that you have in mind. Yes, at the end of the day, no doubt choosing the right Google Ads management policy could have its own benefits for the organization, however, big or small it is.

Be sure to choose the pricing model that makes sense for your company and goals. You can choose one of the above pricing models to help get the results of your Google Ads to help push your business to the next level!