Planning on managing Google Ads for clients?
Figuring out how much to charge them should be on the top of your list.
If you charge too little, you’re leaving potential income on the table, and clients might start questioning the value they’re getting.
But if you charge too much, you might scare off some clients and give your competitors the chance.
So, how much to charge for Google Ads management?
In this post, I’ll give you a run down of the normal Google ads management pricing models other agencies use, along with the pros and cons of each.
I’ll also go over the factors you need to take into account before coming up with the prices.
Google Ads Management Pricing Models
Here’s how other agencies charge for managing Google Ads:
1. Percentage Of Ad Spend
The most common pricing model is to charge a percentage, usually between 10-30%, of the client’s monthly advertising budget or ad spend.
For example, if a client spends $5,000 per month on Google Ads, the management fee might be $750 per month (15%).
This model scales up or down with the account size.
⚡Also Read: Why did google ads charge me $50
Pros
When your clients spend more on ads, you make more.
Plus, it naturally makes you focus on improving and optimizing ad performance, because they will spend more if you are giving them a good ROI.
Cons
The biggest con is that your income becomes vulnerable to unpredictable changes in your client’s budget every month.
You might also get tempted to focus more on increasing budgets rather than improving ROI.
2. Flat Monthly Fee
Some agencies charge a flat monthly fee, from $500 to all the way up to $5,000.
You get predictable income each month that is unaffected by external factors.
Pros
You know exactly how much each customer will be paying you every month.
Cons
As the client spends more, the account complexity along with the effort and time you need to manage the account will increase a lot.
But you’ll still get the same fee with all the extra work.
And with time, large accounts still paying the low legacy fixed fees will become really underpriced compared to the actual demands of managing them.
Plus, it can seem expensive for clients with smaller budgets.
3. Performance Based
There are also agencies that charge per lead or conversion from Google Ads instead.
This model is very easy to sell and your earnings are directly tied to performance results.
However, it can create big administrative issues around properly recording and reporting on leads or calls generated.
Pros
This model always encourages you to optimize outcomes for the client.
Your interests will fully align with their actual business objectives rather than the campaign.
Cons
Properly recording and reporting on leads or calls generated is a lot of work. And on top of that, you have to keep filtering out duplicates.
There may also be disputes over lead quality or what counts as a conversion.
Plus, there’s less incentive for strategic optimization beyond conversions.
4. Combination
Some agencies use hybrid models where they charge a flat monthly fee plus a percentage of total ad spend or number of conversions.
The flat fee usually covers baseline work, while the other scales up for larger accounts.
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Factors To Consider When Pricing Google Ads
Before deciding how much to charge a client, carefully consider these:
Account And Campaign Difficulty
First up, check how challenging the client’s account and campaign are.
If it’s a complex setup, it needs more effort from you, so you might want to charge more.
- Do they sell products with dynamically changing prices and availability? This complicates day-to-day management.
- Are they targeting customers across a wide geography with language/cultural differences? This makes optimization tricky.
- Do they require advanced conversion tracking across multiple online and offline touchpoints? This integration work adds overhead for you.
On the other hand, simple accounts with just one core offering or service can be managed for a more affordable rate.
If the client has straightforward ecom or lead gen needs, you can price on the lower end.
Monthly Ad Spend
Higher monthly ad spends equal higher management fees.
Big advertising budgets need closer account monitoring, more in-depth performance analysis, ongoing bid and targeting adjustments, and detailed reporting.
However, don’t be greedy just because a client has a large budget.
So only charge more if their situation needs more work and they are not a simple “set and forget” account despite the big spend.
Industry And Client ROI
You must consider the client’s per customer value and the ROI you can drive for them too.
For example, a lawyer that earns $500 per phone call lead can reasonably pay higher PPC fees than a pizza shop earning $20 per online delivery order.
Best Practices
Here are some of my best tips for charging management fees:
#1 Bill Clients Upfront
Ask your clients to pay each month’s Google Ads management fees upfront at the start of the month or billing cycle.
This gives you some cash to operate your agency and cover contractors and software costs.
Plus, it avoids late invoices. You don’t have to keep hounding clients to pay each month.
#2 Charge Account Setup Fees
Setting up and optimizing new Google Ads accounts is a bit of work – don’t just do it for free.
Always charge dedicated setup fees instead of folding it into your regular work.
This way, you’re getting paid for all the hard work, even if the client decides to part ways shortly after launching the campaigns.
Plus, it motivates the client to stay since they don’t want to waste those fees.
⚡Also Read: Bing Ads No Impressions
#3 Have A Minimum Fee
To make management worthwhile, have a minimum monthly fee in place before taking on any new clients.
Doing free or deeply discounted work quickly eats into your margins.
You can decide on this minimum by researching competing agencies in your area charge and your own overhead costs.
But start enforcing this minimum fee from the get-go.
Trust me, it’s way harder to raise prices later on, especially if you started off with crazy low fees in the beginning.
#4 Prove Your Worth To Clients
It’s not enough to just throw out your Google Ads management fees and hope clients agree. Show them the real value they’re getting!
Share case studies of performance and how much revenue you drive per ad dollar spent.
Also talk about the extra perks you’re offering, like consulting and any cool stuff you’re bringing to the table.
And make sure to keep proving your value every month by reporting their ROI.
This builds trust and reminds them why they’re paying for your services.
