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1WordStream Confidential
Creating a Profitable PPC Agency;
How to Price Your Services
ELLIOTT REID & ERIN SAGIN
January 21, 2016
Copyright 2015 WordStream, Inc. All rights reserved.
2WordStream Confidential
www.wordstream.com/learn
Want to get smart in paid search?
3WordStream Confidential@erinsagin @elliottpreid
Join the conversation on Twitter
@WordStream
@erinsagin
@elliottpreid
4WordStream Confidential
LET’S GET TO KNOW YOU
5WordStream Confidential@erinsagin @elliottpreid
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
6WordStream Confidential@erinsagin @elliottpreid
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
7WordStream Confidential
Picking a Pricing Model
8WordStream Confidential
Disclaimer!
• Picking a pricing model for your agency is a lot
like managing a PPC account.
9WordStream Confidential
Pricing Model #1: Hourly Rate
10WordStream Confidential
Pricing Model #2: Fixed Rate
11WordStream Confidential
Pricing Model #3: Percent of Spend
12WordStream Confidential
Pricing Model #4: Performance-Based
13WordStream Confidential
Pricing Model #5: Service Menu
14WordStream Confidential
15WordStream Confidential
We’re Big Fans of Combos
16WordStream Confidential
The Numbers Game
17WordStream Confidential
Where Are Your Prospects?
18WordStream Confidential
Factor In Your Operating Costs
19WordStream Confidential
Other Considerations
20WordStream Confidential
Should I Publicize My Pricing?
21WordStream Confidential
What Is the Recommended Contract Length?
22WordStream Confidential
Who Owns the AdWords Account?
23WordStream Confidential
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
24WordStream Confidential
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
25WordStream Confidential
Putting It All Together
• Service Menu
– Pros
• Appeals to many customer types
– Cons
• Complex
26WordStream Confidential@erinsagin @elliottpreid
Special Offer
• Live account assessment with a WordStream
PPC expert
27WordStream Confidential
Questions?
28WordStream Confidential@erinsagin @elliottpreid

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Creating a Profitable PPC Agency; How to Price Your Services