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Adwords management fees what is flat fee method and who does it suit


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In Australia today, a variety of companies have sprung up to service the needs of businesses wanting to capitalise on the Online marketing channel.  Online marketing is a general term that comprises of many specialist components. 

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Adwords management fees what is flat fee method and who does it suit

  1. 1. In Australia today, a variety of companies have sprung up toservice the needs of businesses wanting to capitalise on theOnline marketing channel. Online marketing is a generalterm that comprises of many specialist components.We are specifically going to talk about Adwords managementand the flat fee method of payment that some Adwordsservice providers use to bill clients. This one of manymethods that are available for clients when choosing anAdwords company.
  2. 2. The information compiled below is based on 10years experience managing Adwords accounts &over 4 years managing the Paid Search Division inAustralia’s Largest Online Marketing Company.
  3. 3. Flat Monthly Adwords management fee:This is the most common method used in themarket. Fees are fixed and will generally rangebetween $100-$1000 per month. Some companiesdo pay up to $10,000 per month in management feesof larger accounts. With this type of methodAdwords Agencies or service providers are notobligated to provide minimum number of hoursservice, rather you are paying for the end result.
  4. 4. If the agency does not provide the expertise or man hours toachieve optimised performance, the client will generally notstay as a client. In busy agencies, clients at the lower end ofthe monthly fee are the last accounts that get workedon. These accounts are worked on by the least experiencedaccount managers. There are many occasions that accountsmay not be touched for months at a time. The agency willalways protect the highest value clients with its best assetson highest allocation of time.
  5. 5. Talented Adwords Managers, can have an Adwords accountrunning at optimal levels within a few days, whereasinexperienced Adwords managers may take weeks or monthsand never achieve the results required. This is where boththe agency and client can win and lose significantly.
  6. 6. For example, if a client has a management fee of$500 per month with a spend of just $500 permonth, the management fee as a percentage is 50%– which is really high. With a $10,000 budget thispercentage is only 5%. This is a significantdifference.What percentage is the management fee ofthe Adwords budget?
  7. 7. Any Adwords expert will find it difficult to improveaccount performance by double. If your total spendwas $1000 on Adwords and will be cut to $500 with$500 for management fee, this is probably not theright choice. Unless you are in a lucrative industrywhere the market size is very limited and squeezingmaximum market share is the key, this methodwould not likely suit your business.
  8. 8. If Adwords, is not critical to business success thenopting for a flat fee with a modest budget might be agood choice. This provides you with coverage,average performance achieves profitability, thismight be what you need. The stakes are not toohigh, so that if there is a bad month, the doors won’tshut.
  9. 9. That being said, unless the Adwords management issharp, you may never know the full potential that ispossible. Regardless of whether you are starting or aseasoned Adwords user, talk with differentproviders to find out what results they havedelivered. Wherever possible, talk with the staffthat will be doing the job, not the sales rep that willtell you whatever they can to get you to sign on thedotted line.
  10. 10. • Provides for certainty of cost – good for budgeting cashflow• You pay for what you get – is your Adwords manager a gunor a rookie• Understand where your business fits in with the Agenciespecking order of fees – who pays the most & who pays theleast, this will give you some idea of how important you willbe to their business• Budgets that are likely to increase achieve better ROI fromfixed management feeKey takeaways of flat fee Adwords managementmethod:
  11. 11. Find Your Ideal Customers is a start up Digital Marketingagency backed by Australia’s Leading Adwords ManagementTeam. With over 10 years experience, Jayson Rodda is trulyan authority in the field of Adwords Management thisfield. Please reach out to discuss your needs and find out ifyour business can benefit from Professional AdwordsManagement services.