I am researching starting a business managing ad word campaigns for local businesses. I want to focus on in-stream video ads. I am wondering if anyone here does this and can share there pricing strategy. What i have seen so far is charging the client a flat service fee (ex. $500) plus 20% of campaign budget. Thanks,
I also run an AdWords management business and I personally use only the flat service fee for 90% of my clients as I do not like to have an incentive for increasing their budget. Of course, for some businesses they want as many clicks or views as possible so I can see the benefits of a % of budget charge. I would suggest a flat rate in the beginning with an understanding that there may be an increase once you have shown results.
If you do not mind me asking. How much is your flat rate and average length of your clients campaign?
I don't mind you asking. I focus on very small businesses that do not have large budgets. I charge a flat rate of $250 to get them started. I build their campaigns and manage them for 30 days. For most of my clients I only charge $100 per month after that because they are only spending maybe 10-20 per day on their AdWords and I wish to leave them room for profit. A couple of clients spend more and want more hands on attention and I charge them accordingly. I only started this once I left the Google AdWords Team a few months ago so as far as average length I do not have a really solid answer. Some of my clients have very small businesses so after the first 30 days I try to show them how to manage their accounts themselves and some do not have time to manage their account and they have stayed with me since I started. I know, many AdWords management companies say it is not good business to teach clients what I know, but thats how I want to do it for now.
Thanks for your honest feedback. You mentioned you worked for a adwords team. Would you recommend taking a cert. class for a beginner?
Yes, I worked at Google on the AdWords Team. I strongly recommend you take the certifications test if you wish to manage AdWords accounts. I would start by joining the Google Engage Program. Joining is free, you only need a MCC Account. Once you join you will be able to get vouchers to take the exam so it will not cost you anything and you will also be giving access to promotion codes to offer to potential clients and be assigned a Google representative to help you. Best of luck to you!