An oldie, but a goodie thread on the topic (may have to adjust for inflation!):

[webmasterworld.com...]

Don't forget the thread within a thread, too, where pluses and minuses with a variety of pricing models are discussed:

[webmasterworld.com...]

Thanks for the links. Seems like $150/hr is reasonable. Sounds ok?

I've been in the Google/Yahoo/MSN consulting industry for a couple years now and have experimented with a few different pricing models.

I charge $499 for 8 hours and $75/hour thereafter.

I do not believe in % of ad spend because it is not in an advertiser's best interests to have a consultant who is looking to maximize ad spend (to maximize the consulting fee).

HI,

-150$/hour?
-499$/8 hours?
-75$/hour?

What? What is it that you exctly do when managing a PPC camapaign? that it is so expensive? Maybe I´m missing something here...

This is what I charge.. and I´m talking the whole process of setting up campaigns, writing ads, finding keywords, and everyday monitoring the campaigns.. I charge only 15$/hour...

And I can assure you, all work done here it´s high quality.

Regards

This is what I charge.. and I´m talking the whole process of setting up campaigns, writing ads, finding keywords, and everyday monitoring the campaigns.. I charge only 15$/hour...

You are grossly undercharging. Do you live in India?

I wouldn't charge less than $100/hr, I can make that much doing PPC for myself.

Search for "search engine pricing models" on G and the first link is an excellent article on this topic.

I feel $75 to $100 is fine for start. For setup you can charge more as it takes more time than bid management.

I´m at South America,

15$ x 8 = 120$ x 22 days = 2640u$ Monthly

Now think that since our local currency is devaluated agaisnt US dollar, i´m making about 10560$ bucks, That means a lotta anoy here!
We got clients from everywhere at these values...
Yeah I know.. free flow of supply and demand.

Regards.

P: anoy = money

Windslide, how many employees do you have?

Sorry, but you don't pay taxes? Everything that you charge goes in your pocket?
What has got to do that your currency is under-evaluated, and from 2640 you make 10560? What is this 4 multiplier?

OK,
We have 12 employees for PPC Campaigns and some other 30 for organic positioning optimization.

Now, what I was trying to explain through that simply ecuation
2640 x 4 = 10560, it´s the PPP (I think) Purchase Power Parity, this is, with 2640 U$ in my country we can access to goods that in USA, for example, would cost 10560$ bucks.
So, 2640U$ changed to local currency here, it´s great money.

Regards.

yeah, like in my country. 1k EUR/month is a quite lot as salary.
try to go on holidays, though ;)

�m at South America,

15$ x 8 = 120$ x 22 days = 2640u$ Monthly

Windslide, are you saying that you charge your clients for 8 hours of work on their accounts per day for 22 days per month?

Let me explain,

I´m talking average here. Why? because not all our clients are the same, some have thousands of keywords and some have few hundreds.
But, let´s say:
The first day I spend all day find new keyws, setting up campaigns + ads.. so I spend 8 hours on a new client. But once I got campaigns running, and all I have to do daily is tunnnig up those, I can spend, maybe 2 hours per client, so I got 6 more hours to works on other 3 clients.
We only work Monday thru Friday, so that´s why I count only 22 days of labor day a month.

Any more doubts, I´l be glad to help

$15/hr, can I subcontract you? :)

Anyway, the company agreed to $100/hr so there we are.

As long as you pay my 15/hr you can subcontract me anytime!

Best Regards!

My charges per hour is not even close to any of your charges mentioned above. I am from India and i charge only $10/Hour(MAX).

I am wondering, how much I would make if I am in US/UK :)

[edited by: admagix at 3:19 pm (utc) on May 17, 2007]

There are many methods to pricing. Two that I use:
1) Have a base fee for campaign setup - keyword research, negative kw research, campaign and ad group set up, and ad copywriting. This is a flat fee. Then, $125US/hr for management. Contractually I let the client know an estimated number of hours per week, and bill that accordingly. Also, I set in a discounted hourly rate for additional work beyond the campaign management hours to cover all bases.

2) Campaign set fee as described above. In addition, a pricing model based on client's revenue. If I increase their revenue, I share a percentage in the gain. That way, a client knows they only pay me when their business is doing better. Every client I explain this to has signed on. Incremental business for my client = me getting paid.

My rates depend on the client, the campaign, and the degree of consultation / management / organization they want, and also what other things I am doing for them. No two clients are the same situation, so no two clients get the same rate. Since I don't advertise, this works out okay for me.

sound advice from netmeg

I normally go for a percentage of their profit resulting directly from adwords traffic. For me this works well - and it acts as an incentive to manage the account well. However, I can see that this wouldn't work in every niche - this would only work perhaps in niches whereby the end sales are high - but not too frequent.

If I had a client selling blue widgets - depending on the size, and overall spend - I reckon i would charge around £500 for the initial account set-up. Then probably an hourly rate of around £50 - £75 there after.

Difficult to bench mark this, as every account is so variable. Some accounts are muchsimpler to set up than others. Some niches result in far fewer keywords than others etc. I think it is really a judgment call - assess how much time you think it will take to set up. Work out an hourly rate for this. Then assess roughly how much time you feel it will need to maintain it.

i also do a % of profit or sales, and it is different for every client per nutmeg thinking.

Some of my clients are not promoting sales with AdWords, so that wouldn't work for me.

I feel working on contract basis will be fine... defining a per day PPC services.