• Skip to primary navigation
  • Skip to main content
  • Services
    • SEO
    • PPC Management
    • Digital Marketing
    • Digital Strategy
    • Fractional CMO
    • Analytics
  • Industries
    • Healthcare
    • Fintech & Financial Services
    • Ecommerce
    • Professional Services
    • Education
    • Manufacturing
    • Government
    • Legal
  • Case Studies
  • Resources
    • Marketing Insights
    • White Papers
    • Webinars
  • About
  • Call Us:
    (888) 846-5382
  • Contact Us
Home
Resources
Articles
4 Types of PPC Agency Billing Explained
billing_Woman renter holding paper bills using calculator for business financial accounting calculate money bank loan rent payments manage expenses finances taxes doing paperwork concept, close up view
Marketing & SEO
December 4, 2022

4 Types of PPC Agency Billing Explained

Avatar for Peter Devereaux
Peter Devereaux
Peter is a Marketing Director with extensive success in SEM/PPC, SEO, email, social media, and digital marketing that...
Read more

Get in touch with Peter

PPC
1665 views
Avatar for Peter Devereaux
Peter Devereaux
Marketing Director
Peter is a Marketing Director with extensive success in SEM/PPC, SEO, email, social media, and digital marketing that drives revenue across multiple channels.
Read Less

Subscribe to our weekly newsletter

Stay up to date with the latest digital trends.

No two PPC agencies are the same. They have different areas of expertise, processes, and management styles. Anyone intending to work with one should look into these factors before making their selection.

Unfortunately, it’s hard to get a clear sense of exactly how each agency operates just from perusing their website. Their websites may contain their company’s history, products and services, and methodology. However, that is just scratching the surface.

It’s important to set aside time to sit down with the agency to discern if there is a fit between your needs and what they can provide. By asking the right questions, you will learn more about the PPC agency and determine whether or not they are the right people to help you with your PPC marketing needs.


If you want to learn how Digital Authority Partners can increase your PPC effectiveness, watch this video!


 

Getting to Know PPC Pricing Models

ppc billing_Woman's hands holding a credit card and using laptop for online shopping.

One of the things you should know is how PPC agencies bill their clients.

If you are not familiar with how they work, you may be surprised to know that PPC agencies follow different pricing models. As a result, some will appear more expensive than others.

However, you should not look at the numbers alone. It is not only the computation that varies. Agencies can also include different services in their packages, which you should consider as they may help you decide which team is best for your business.

Unfortunately, agencies do not usually disclose this outright on their websites, so you have to ask to find out. However, you do not have to worry about getting caught off guard.

Even though you cannot know how agencies bill their clients without contacting them, you can still prepare ahead.

PPC agencies use four known pricing models. 

     1. Bill a Fixed Monthly Rate

The fixed price model is where you pay an agency a specific rate every month. Agencies offering fixed rates will emphasize that they provide a complete set of services that can gain long-lasting benefits to your business.

However, be aware that these fixed prices also vary among agencies. Some companies offer as low as $1,000 per month and as high as $4,000.

Usually, going for the lowest amount is the way to go if you want to save money, but you should ask about how they operate at such a rate. There is a possibility that they will not work hard enough to optimize your campaign.

Choosing a more expensive agency may mean better service. Still, you might end up paying too much. The agency may set your campaign aside without performance incentive once it starts performing at an acceptable rate.

The fixed price model is usually the best option for big corporations. Because despite being the simplest among the four, PPC agencies using this model typically require a significant setup fee before they start.

Giving a considerable sum before they do any work is a risk for small businesses that usually do not have this money. 

     2. Bill by the Hour

The hourly billing model means you will only pay the agency by the hour they work on your campaign. This option may be suitable for small businesses as they can easily track the amount of money they spend on their PPC campaigns.

Still, agencies may not provide you with the best quality of service.

Working by hour gives both parties flexibility, allowing any unplanned tasks to enter the scene. It can take the focus away from the original scope of work set initially.

Too much flexibility usually causes agencies to work inefficiently. They may use up your allotted monthly budget without providing the most optimal results.

You can avoid this by closely monitoring the agency you work with. However, with all the work you have to do with your own business, that may be hard to do. 

     3. Bill According to Performance

Performance-based billing can mean two things. The most popular is paying according to the number of leads that your campaign acquired based on the PPC campaign the agency created for you.

Hence, you will pay the agency a high amount if they manage to give you a lot of leads. However, keep in mind that having a lot of leads is a good thing as not all of them are relevant.
The other performance-based billing model is through different parameters. It can be the number of clicks on the ads, lead conversion, and return on investment.

If you consider going with this payment model, you must ensure that the agency can provide you with transparency. 

     4. Bill by a Percentage of Ad Spend

This model is the most used pricing model by PPC agencies. It is not as simple as the other four models, but it is the most logical choice among all of them, not just for businesses but also for agencies.

In this pricing model, you will have to pay a specific percentage derived from the overall amount you spent on your ad. Typically, the agency fees range from 10% to 20% of the whole amount.

One of the positive aspects of following this model is complete transparency. The scope of work will be well-defined. Also, the fees will be set right from the start.

Final Words

Choosing a PPC agency to work with is a serious matter. After all, it involves spending the money you set aside for online marketing. You have to make sure that you get the most out of your investment.

The research alone takes a lot of work. It is not enough to look at the agencies’ history, services, process, and portfolio.
You have to dig deeper.

Ask all questions you can think of, especially regarding all aspects involving money. Reliable agencies should provide you with all the information you need to decide.

They should be able to honestly tell you if their pricing model will match your business. If possible, they can offer you a better option. If not, you can go to the next agency on your list.

Want to meet with our team?

Book a meeting directly here

Like what you just read? Share this article with your network and friends.
Tweet Share Share Send

Related articles

seo partner_Shot of smart business people working with plans while talking of their new design business in the office
Marketing & SEO
Mar 27, 2023
Conquering the San Diego Market With a Great SEO Partner

San Diego is a vibrant city, home to competitive industries like health and medical, sports and active lifestyle, and...

Digital Authority Partners
Marina Turea Content Project Manager
Read Article
ROI_ROI Return on Investment Finance Profit Success Internet Business Technology Concept.
Marketing & SEO
Mar 27, 2023
Why Hiring a San Diego SEO Firm Is Best for Your ROI

Marketers use various metrics to evaluate the success of campaigns. One of the most straightforward ways to gauge pro...

Digital Authority Partners
Marina Turea Content Project Manager
Read Article
san diego boat rental_San Diego, CA USA - July 9, 2022: View of the SeaWorld Marina from the Bayside Skyride gondolas at SeaWorld San Diego.
Marketing & SEO
Mar 27, 2023
Hire San Diego Local SEO Firms for Top Sail Boat Rentals

The demand for sailboat rentals in San Diego is on the rise. With more people taking up boating as a hobby, opportuni...

Digital Authority Partners
Marina Turea Content Project Manager
Read Article
Digital Authority Partners
The next-gen digital partner for today’s makers & doers.

Digital Authority Partners
420 West Huron, 1st Floor
Chicago, IL 60654
(312) 820-9893
[email protected]

Resources
Services
Case Studies
Insights
About
Industries
Locations

One newsletter, once a week Today's top digital insights delivered straight to your inbox.

Thank you, you're all signed up! We'll be delivering you valuable newsbites to your inbox soon!

FacebookTwitterLinkedinYoutube
Digital Authority Partners | Copyright © 202s2 All Rights Reserved.
X

Contact our team

This field is required.
This field is required.
The email address you entered is invalid.
The phone number you entered is invalid.
X

Thank you!

One of our consultants will get back to you within 24 hours.


OR


Call Us:
(888) 846-5382