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. 

2. 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.

3. The information compiled below is based on 10
years experience managing Adwords accounts &
over 4 years managing the Paid Search Division in
Australia’s Largest Online Marketing Company.

4. 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.

5. 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.

6. 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.

7. 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.
What percentage is the management fee of
the Adwords budget?

8. 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.

9. 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 won’t
shut.

10. 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.

11. • 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
Key takeaways of flat fee Adwords management
method:

12. Find Your Ideal Customers is a start up Digital Marketing
agency backed by Australia’s 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.