Generally speaking, some charge a flat rate for campaign creation while others use a monthly management fee scale. Of course, within these structured rates, there are additional options.
Fixed Hourly Or Flat Rate Structure
One of the most common ways for an AdWords consultant to charge for consultation is through a fixed hourly rate. The number of hours needed to work on your campaign are figured up front, and you then pay in full or pay a down payment before paying as you go.
A consultant’s rate varies, usually ranging from about $50 an hour to higher than $300 an hour.
The rate is based on a project’s scope. Your consultant will work with you to determine what work needs to be done and whether or not you will need ongoing maintenance. The total consultant fee will be based on the entire project with an hourly rate. Your consultant will quote you a total number of hours your project is expected to take and then explain how the hours will be applied.
Hourly Rate Structure bases your fee on the amount of time the consultant agency spends managing your account each month. If their rate is $50 per hour, and they work 20 hours managing your click campaign, the total monthly fee will be $1,000. Of course, the only drawback to this pricing model is that it tempts the consultant to fudge, claiming more hours or using the time inefficiently.
Per keyword phrase bid per PPC account is another model that management consultant firms use. In this method, the consultant will charge a monthly fee based on the number of keywords managed for each of your pay per click accounts. For instance, if the company charges $20 per month per keyword bid per account and manages 100 keywords in Google AdWords, the management fee will be 100 keywords X $20 per month.
This type of structure is completely not beneficial for advertisers and I would run away from such provider without even thinking twice.
Percentage Rate Structure is a traditional ad agency pricing model. The PPC fees are figured based upon how much you spend in your pay per click accounts. Most consultants will charge their fees based on a range starting at about 15% and going upwards of 30% of your total monthly ad budget costs.
In this structure model, if you spend $1,000 each month on Google AdWords, and the agency charges 20%, their fee will be $200.
Some people might say that the main disadvantage of this percentage model is that it may not provide the necessary incentive for your consultant to manage your ad budget effectively, encouraging you to spend more instead of basing it on the ad’s performance.
However, it is not an accurate statement since higher spend only happens when an advertiser experiences positive ROI also you can always have a set budget that consultant is not allowed to exceed.
Pay for Performance Structure is set up with you paying the consultant company a pre-set fee that is determined based upon specific factors. For instance, you pay the company $1.00 for every email, call or sale you receive as a direct result of the ad campaign. Likewise, it may be based upon a percentage of each sale generated from the pay per click ad campaign which the consultant manages for you.
This structure puts you into a partnership relationships. In most cases it makes no business sense to do that. Imaging Amazon hiring a consultant to manage their PPC campaigns and paying him $1 for each sale.
Hiring a consultant or not all depends on your resources and business needs. If you are in an industry that typically spend $50 to $100 per click, when your advertising budget is this high, it only makes logical sense to consult with someone who understands the ins and outs of Google AdWords. Hiring a consultant is a must in order to get the best possible return for your advertising investment.
Before You Hire A Consultant
Before you decide whether or not to hire consultants, know how their Google AdWords rates are structured. First, understand that the fee you pay the consultant is separate from what your actual Google AdWords costs will be. You will receive one bill from Google and another from your consultant.
Higher priced AdWords consultants are usually comparable to their experience, their effective skills, and their overall Google AdWords Campaign strategies they use to yield high returns on their clients’ accounts.
They are specialists who strive to ultimately make you money through the ad campaigns you run.