Because when you increase a companies bottom line, they increase their ad spend. Eliquid doesn't work in niches with small monthly volumes targetting terms like "<tiny ass suburb> of <tiny ass town> plumbing" where being efficient would increase his own payout.
Hourly rates are usually $100-$200/hr, but most people don't bill hourly from my experience. Also, most companies don't like being charged hourly unless you are working from their office or on some type of ridiculous time tracking program.
Pretty much this. When you net them more PROFIT, they will generally reinvest most of it into next months spend. At least all of my clients have. I haven't been in a situation yet where I increased their ROI ( and lowered their spend ) and them keep at the new lowered number spend per month. They generally set a budget of say $100k a month and a goal of X leads/conversions/etc. As long as I bring in a CPL of $100,000/X, Im good.
I should also mention that i was only talking about web design/dev at the 125.00 per mark. With PPC it wouldn't be good to charge by the hour, you're leaving money on the table.
Listen to Eliquid, 10-20% of ad spend for PPC.
Yeah, I have seen sliding fees too. So X% until $X spend, then adjusting for the next range up at a diff x% until you hit $X spend.
The most important question you must ask any prospective client.
"What is your budget"
[sarcasm?]
And then depending on your sales skills add 25% to their budget, and that is your rate. ***Pro tip Sell it low and screw em on the backend w/ plenty of change orders. [/sarcasm?]
seriously though work that 1 question into every new client consult. Just remember they will probably lie to you, but at least you will have a starting point.
Well, that might work. However the better approach is to simply ask "If all goes to plan, how much do you think PPC/This website/This campaign/This new blue widget will add to your bottom line? Whats the revenue goal for this project?
When they say they feel this new website needs to make then an additional $2mm a year, you have your answer what you should charge.. 10% of whatever their number is.
If a client feels a new website/marketing plan should net them $2mm a year, then charging them $200k would be a no brainer. Any one would pay $200k to make $2mm.
Wither you can pull it off for them or not is not the question. Wither or not you deal with mom and pop client is also not the question. Thats all exceptions to the rule.
BTW, thats how a lot of value based agencies work ^^.
Ok I can tell you from experience, if you want to charge high (think $100++ per hour) you NEED an agency yourself, and a professional website, testimonials, a 1-800 support number, case studies from past clients, etc...otherwise NO ONE WILL TAKE YOU SERIOUSLY.
I've experienced this first hand, it was very hard at the beginning for clients to pay me more than $50 an hour knowing that they are paying some dude sitting in his underwear at home, even if you're the best at what you do. People's budgets are influenced by perception, you need that professional image that comes with running an agency. When clients know that you are a serious business with an office, employees, clients, a good track record... sky is the limit and you can start charging the big monies.
Good luck bro
You wear underwear? I free ball
% spend doesn't always work, eg. the campaign monthly spend is small <$2000/mo or the campaign size itself is small (low # of keywords yet with high priced keywords). Also every situation is a little different with the types of campaigns (search, display, youtube). If your good with PPC and efficient with adwords editor and excel, based your estimates at min. $100/hr+. Adwords is much more complex than it was even last year and google thrives on shitty campaigns. On top of that I'd charge even more for Bing.
If your dealing with smaller clients, then spend doesnt work. However you shouldn't be doing much work on small budgets either right? Hardly any data, hardly any breathing room, etc. However this is where you can step into retainer/per project based/hourly pricing too.
Where's the incentive for improving the profit for a client's PPC campaign when it reduces your own payout?
I think you mean, if they are spending $10k a month and wanting 100 leads for that money and I reduce their CPL to now $10 a lead and they get those same 100 leads for $1k, I just cut myself of 20% of 9k, right? I've never had that shit happen. When you get clients leads for cheaper, its like them smoking crack, they want more of it and will pay for more of it.
The fact that you bundle Web Dev and PPC together makes me feel bad for your clients.
I feel the same way.
