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1WordStream Confidential
Creating a Profitable PPC Agency;How to Price Your ServicesELLIOTT REID & ERIN SAGINJanuary 21, 2016
Copyright 2015 WordStream, Inc. All rights reserved.
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www.wordstream.com/learn
Want to get smart in paid search?
3WordStream Confidential@erinsagin @elliottpreid
Join the conversation on Twitter
@WordStream@erinsagin@elliottpreid
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LET’S GET TO KNOW YOU
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Tell us a little about yourselves…
• I’m contemplating starting a digital marketing agency
• I’m in the process of starting a digital marketing agency
• I currently offer PPC and am considering revamping my pricing models
• I currently offer other services and am considering adding PPC
• I like my pricing model and just want to know what others are doing
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Meet Your Presenters
Erin Sagin• PPC Evangelist &Community
Manager at WordStream• Has specialized in Paid Search
for 4+ years• Named one of the top 25 Most
Influential PPC Experts by PPC Hero
Elliott Reid• Agency Sales Team Manager• 3+ years helping agencies &
advertisers acquire new clients
• 2 years coaching/managing a team of 8 to help agencies manage PPC accounts
• Has worked with agencies of all sizes
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Picking a Pricing Model
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Disclaimer!• Picking a pricing model for your agency is
a lot like managing a PPC account.
The more specific to your needs the better!
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Pricing Model #1: Hourly Rate
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Pricing Model #2: Fixed Rate
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Pricing Model #3: Percent of Spend
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Pricing Model #4: Performance-Based
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Pricing Model #5: Service Menu
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We’re Big Fans of Combos
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The Numbers Game
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Where Are Your Prospects?
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Factor In Your Operating Costs
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Other Considerations
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Should I Publicize My Pricing?
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What Is the Recommended Contract Length?
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Who Owns the AdWords Account?
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Putting It All Together• Hourly
– Pros• Great way to get customers in the doors
– Cons• Can’t scale• Conflict of interest
• Fixed Rate– Pros
• Simple, good for consistent budgets– Cons
• Disincentives you to grow
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Putting It All Together• % of Spend
– Pros• Great way to grow
– Cons• Does not always work with low spend
accounts• Performance Based
– Pros• Will motivate you to work the account
– Cons• Account work does not immediately/evenly
translate into performance
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Putting It All Together• Service Menu
– Pros• Appeals to many customer types
– Cons• Complex
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Special Offer• Live account assessment with a
WordStream PPC expert
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Questions?
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