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Pricing PPC For Profit

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Discover the need-to-know pricing strategies that WILL make your agency money

You'll walk away knowing :

- The most common agency pricing models
- Advantages and pitfalls of each model
- How to maximize the profitability of your PPC revenue stream

Published in: Marketing
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Pricing PPC For Profit

  1. 1. LIVE WEBINAR © Copyright 2018 WordStream, Inc. All rights reserved. Pricing PPC For Profit October 18th, 2018
  2. 2. | Confidential 2 Your Partner in Agency Growth • Optimize every campaign from one place • Manage, prioritize, and budget across your portfolio • Share success with your clients • Create image and video ads at scale • Pitch and win new business more efficiently “WordStream opened up an entire new business opportunity to me. Without it I wouldn't have the time or inclination to sell PPC management services on a large scale. Now I can offer AdWords, Facebook, and Bing ads as an intro or add-on service for my clients, without needing additional resources. WordStream changed my business.” - Jim Odom, Echo Creative Marketing
  3. 3. Logistics • Webinar will be recorded – check your inbox for materials • Submit your questions for Q&A
  4. 4. 4 • 12 Years In Sales • 11 Years In PPC, Since I Started Boston Photobooth Rental • 4 Years At WordStream • Agency Team Lead I’m Sean Sean Cruise
  5. 5. Agenda • Discuss Popular PPC Pricing Models • Review Agency Business Model • Most Common Pricing Mistakes • Practical Examples of Pricing Models
  6. 6. 6
  7. 7. 7 How does your agency price your paid search services?
  8. 8. 8 If your agency charges a % of spend, what do they charge?
  9. 9. 9 Does your agency charge additional fees for any of the following?
  10. 10. 10 Does your agency charge a setup fee? If yes, how much?
  11. 11. 11 Are you happy with the way you’re charging today?
  12. 12. 12 Why aren’t you charging more?
  13. 13. 13 Agency Business Model
  14. 14. 14 Fee / Hours Invested = Hourly Rate
  15. 15. 15 Am I Charging Enough? • Charge Less for PPC Than Other Services • Spend Too Much Time Managing Accounts • Don’t Have A Minimum In Place • Don’t Consider It As A Stand Alone • Don’t Base Pricing Off Profitability
  16. 16. 16 PROFITABILITY
  17. 17. 17 How Do We Base Pricing Off Profitability? • Build Backward From An Hourly Rate • Consider What We Charge For Other Services • Consider What We Pay Employees Doing The Work • Are We Getting A Commitment?
  18. 18. 18 Common Pricing Scenarios Flat Fee % of Spend Hybrid
  19. 19. 19 Flat Fee $2k Revenue / 24 Hours = $83/Hr Fee What can we do about this? Charge $500/mo 4 Clients 6 Hours Per Month Per Client
  20. 20. 20 Flat Fee Improvements 1. Charge More • What does a $200/mo increase per client do? • $2800 Revenue / 24 Hours = $117/Hr Fee 2. Spend Less Time Managing Accounts • $2k Revenue / 12 Hours = $167/Hr Fee 3. Do Both • $ 2800 Revenue / 12 Hours = $233/Hr Fee
  21. 21. 21 How We Help Results Time Savings Expertise Win New Business
  22. 22. 22 Win New Business
  23. 23. 23 Don’t Just Take Our Word For It
  24. 24. 24 % Of Spend $4k Revenue / 48 Hours = $83/Hr Fee What can we do about this? Charge 20% of Spend 6 Clients $20k Monthly Spend 8 Hours Per Month Per Client
  25. 25. 25 % of Spend Improvements 1. Charge More • What does a 5% increase in spend do? • $5000 Revenue / 48 Hours = $104/Hr Fee 2. Spend Less Time Managing Accounts • $4k Revenue / 36 Hours = $111/Hr Fee 3. Increase Client Spend • $1k/mo increase per client ($26k/mo x 20%) • $5200k Revenue / 48 Hours = $108/Hr Fee 4. Do It All • $ 6500 Revenue / 36 Hours = $181/Hr Fee
  26. 26. 26 Hybrid $5k Revenue / 48 Hours = $104/Hr Fee Did you consider this model? Charge $500/mo & 15% of Spend 6 Clients $20k Monthly Spend 8 Hours Per Month Per Client
  27. 27. 27 Nothing Will Change If You Don’t Change Something 1. Charge More 2. Spend Less Time Managing Accounts 3. Leverage Less Expensive Employees 4. Find New Clients
  28. 28. 28 Pricing PPC For Profitability Take Aways Always Start With Profit In Mind There’s No Right Or Wrong Answer Results Have To Be There 4 You Can’t Always Increase Prices, But You Can Impact Profit Immediately 5 Pricing Will Change And Grow As You Do 1 2 3
  29. 29. © Copyright 2018 WordStream, Inc. All rights reserved. Thank you! Sean Cruise Agency Team Lead scruise@wordstream.com

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