How should I charge to run FB ad campaigns?

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pdxdvr

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Dec 10, 2011
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I've been doing jack-of-all-trades social media for a client for about a year now including periodic FB ads (which I do both for my day job and as an affiliate), but now the client wants to expand their Facebook ads and have me manage it as a separate contract from what I'm already doing.

As my experience running ads has either been included in contracts, is part of my job, or is just for personal projects, I've never charged just to run ads, so I'm not sure the best way to go about pricing it.

I'm assuming it's better to do a % of ad spend, but maybe there's a better way. And if it's a % of ad spend, what's a reasonable range?

Thanks for any insights.
 


Depends. How much do they spend, what's the profit margin?

There's plenty of options: percentage spend, percentage profit, flat-rate fee, etc.

Determine which one will work best for you.
 
titanium777 said:
Depends. How much do they spend, what's the profit margin?

There's plenty of options: percentage spend, percentage profit, flat-rate fee, etc.
Click to expand...

They're still being cagey on what the budget will be for the new project, based on what I know about them, I'm expecting $750-$2000/month. They're a manufacturer in a niche where they are one of the top brands with products ranging from $50-$450.

Considering their developers had the hardest time getting any kind of tracking setup for their site whatsoever, I'm hesitant to go with % profit. I just have no idea what going rates are for % spend or flat-rate.
 
PPC % is usually 8.5% to 20% depending on the size of the campaign. You can also do a flat fee + % of ad spend.

For example you can charge 300$ a month + 7.5% of their monthly adspend. You said they'll spend 750-2000$ a month so even doing a 20% won't get you more than 400$ so you might as well go for a flat 200-300$ fee + a small %
 
Ask for a monthly retainer AND a % of spend.

I've done a shit ton of these types of deals.

Get a retainer first, make it a flat fee, say $300. Once spend hits XXXX amount, charge them based on % of spend, around 15%

Why? $300 is 15% of $2000 ( your estimate monthly ), if they are slow on their end to ramp up, at least you're getting 15% of top of spend estimate. Once things ramp up though ( if they do ), pricing changes to % of spend ( which ever is higher ).

You can make the change happen at say $3000 and then you just charge them 15% instead, which is $450.

You're building in the least amount you will ever get paid is $300, while also ensuring your rate goes up as their spend goes up.​
 
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