Hi there, I'm curious how those guys that manage an AdWords account for you charge for their services? Do they ask for a % of your budget or they have flat rates? Can I still be profitable if I hire one of them? I mean I have to pay for clicks and to pay a guy to manage campaign which means that my costs per click are higher... How much usually cost to hire an AdWords professional to run ads for you? Is that something like $200 per month or much more? Any info will be appreciated
They charge normally 20% of your monthly budget; however if you have a higher budget then fixing a monthly payout is a better option. How much is your budget?
There are all kinds of fee structures. The most common seems to be a percentage of spend. There may be a minimum so if your budget is only $100 per month, even if they charge 15% (about average), they may still ask for more. Others like myself charge a set fee. I charge based on size and scope of the campaign with a $75 per month minimum. I've seen one or two charge based on some other factors such as difference of CPA saved and even a percentage of sales, much as a commission. I'll consider such fees myself. There are many reasons to hire a professional just like you'd hire other professionals like a contractor or mechanic. You may not have the time, the tools, the expertise or the inclination to do it. Often, they do a better, faster job than you can and same time and money. If your manager is good, they should be able to save you money on CPC, increase conversions and more than make up for their fee. For example, I decreased one client's CPS from around $40 last year down to $17 almost immediately to $8.50 last month. As he's making 700 sales, he's saving $22k a month and I'm not charging anywhere near that so he's happy. Another happy client says sales are more than double in his brick and mortar store. So yes, you can be profitable. That's they job to make you more profitable, at least that's the way I look at it.
I don't think 200 dollars per month is enough to hire a REAL adwords professional. To be honest, many times you get what you paid for. A lot of my clients said they found Adwords not working in the past because they simply didn't get the right guy to do the job. I have always worked for small businesses and when my client doesn't have the budget to pay my regular hourly fee, I let them pay less and give me sales-based commissions. It's a good compromise and a win win situation for both sides.
@spicy_spirit - never heard of anyone charging a hourly fee for an adwords campaign. I may be interested in sales-based commissions if you could send some details. Really if anyone here can run an adwords campaign for me, please send over the details via pm.
I think from my own personal experience they cost anywhere from 10-20% of your spend - depending on your budget.
Well its normally about %20 for small budgets but I have seen they take like %7 where the company has more than $100.000 budget. Some of them also have a Bonus Structure where they hit the sales and get extra bonus from company
I don't think that to pay % budget is good idea. In this case adwords manager will be interested in that customer would spend more and more on clicks but not focus on campaign quality. F.e. I'm paid for time that I need to spend on customer adwords accounts, usually I ask 100usd payment for the first month and after we see what is results and time needs, then we discuss about for both sides acceptable fee.