Adwords Management Fees

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Adwords Management Fees
Learn more about Google Adwords Management
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What is flat fee method and who does it suit?
In Australia today, a variety of companies have
sprung up to service the needs of businesses
wanting to capitalise on the Online marketing
channel. Online marketing is a general term that
comprises of many specialist components. We
are specifically going to talk about Adwords
management and the flat fee method of payment
that some Adwords service providers use to bill
clients. This one of many methods that are
available for clients when choosing an Adwords
company. The information compiled below is based
on 10 years experience managing Adwords accounts
over 4 years managing the Paid Search Division
in Australias Largest Online Marketing Company.
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Flat Monthly Adwords management fee
This is the most common method used in the
market. Fees are fixed and will generally range
between 100-1000 per month. Some companies do
pay up to 10,000 per month in management fees of
larger accounts. With this type of method
Adwords Agencies or service providers are not
obligated to provide minimum number of hours
service, rather you are paying for the end result.
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If the agency does not provide the expertise or
man hours to achieve optimised performance, the
client will generally not stay as a client. In
busy agencies, clients at the lower end of the
monthly fee are the last accounts that get worked
on. These accounts are worked on by the least
experienced account managers. There are many
occasions that accounts may not be touched for
months at a time. The agency will always protect
the highest value clients with its best assets on
highest allocation of time. Talented Adwords
Managers, can have an Adwords account running at
optimal levels within a few days, whereas
inexperienced Adwords managers may take weeks or
months and never achieve the results required.
This is where both the agency and client can
win and lose significantly.
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What percentage is the management fee of the
Adwords budget?
For example, if a client has a management fee of
500 per month with a spend of just 500 per
month, the management fee as a percentage is 50
- which is really high. With a 10,000 budget
this percentage is only 5. This is a
significant difference.
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Any Adwords expert will find it difficult to
improve account performance by double. If your
total spend was 1000 on Adwords and will be cut
to 500 with 500 for management fee, this is
probably not the right choice. Unless you are in
a lucrative industry where the market size is
very limited and squeezing maximum market share
is the key, this method would not likely suit
your business.
What is the relative importance of Adwords
success to your business?
If Adwords, is not critical to business success
then opting for a flat fee with a modest budget
might be a good choice. This provides you with
coverage, average performance achieves
profitability, this might be what you need.
The stakes are not too high, so that if there
is a bad month, the doors wont shut.
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What is the relative importance of Adwords
success to your business?
That being said, unless the Adwords management is
sharp, you may never know the full potential that
is possible. Regardless of whether you are
starting or a seasoned Adwords user, talk with
different providers to find out what results they
have delivered. Wherever possible, talk with the
staff that will be doing the job, not the sales
rep that will tell you whatever they can to get
you to sign on the dotted line.
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Key takeaways of flat fee Adwords management
method

• Provides for certainty of cost good for
  budgeting cashflow
• You pay for what you get is your Adwords
  manager a gun or a rookie
• Understand where your business fits in with the
  Agencies pecking order of fees who pays the
  most who pays the least, this will give you
  some idea of how important you will be to their
  business
• Budgets that are likely to increase achieve
  better ROI from fixed management fee

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Find Your Ideal Customers is a start up Digital
Marketing agency backed by Australias Leading
Adwords Management Team.
With over 10 years experience, Jayson Rodda is
truly an authority in the field of Adwords
Management this field. Please reach out to
discuss your needs and find out if your business
can benefit from Professional Adwords Management
services.