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How Much Should Your Agency Charge For Google Ads Management?

Not sure how much to charge for Google Ads management? Watch our video to learn more about Google Ads (PPC) management pricing.

I specialize in Google Shopping Ads and my target niche is eCommerce store owners. What do you think about a reasonable retailer package and setup fee as a new agency? I’m confused about pricing. So again, Arshad, thank you for your question. First of all, again, this is one of the most commonly asked questions, and I've replied to this many times, and I'll reply in the same manner. I cannot answer that for you. I don't know your lifestyle, your circumstances, your overheads. You may be able to live on $50 a day, or you may not be able to run your business on $500 a day. So it really depends on what you want to charge. So if you are new and I'm talking about this is what I did when I was new, Right? I’m not saying to all of you whether you should do this or not.

It may not be right because I don't know your circumstances. So we started the business as photography, as photographers. Then we ventured into video, website, and then Google Ads. I needed customers. I had no case study. I had no social proof. Nobody knew we could do Google Ads because I was only doing it for myself, for our business. So I went out to our existing clients, corporate customers, I said, I'm going to run Google Ads for you, don't pay me for I think it was 60 days or something like that. And if I give you the results and should you wish to continue, then you pay me. But in return, all I would ask is a testimonial. And that's what I needed. And a lot of people agreed on all they would do is pay for their Google Ads. And I started to get that social proof, those testimonials.

And then if I do a good job for one business or one person, they're going to talk about me to their friends and family and other colleagues. Then the world starts to spread. And that's the best form of advertising referral. And this is how we started. And this is how I started. If you want to go about doing that, you set up a landing page, you put up an offer, and going back to that question earlier on, you've got to have an offer. So if you say on that landing page or that offer, I'm going to run your ads for free, all I ask in return is a testimonial or a review. If you're happy with my service, no strings, no questions asked, there are no other things involved. It’s just a simple, straightforward offer, which I am offering right now to a very selected number of customers, and then get started. Now, going on to how much you should charge, you should charge how much value you are adding for that business or to that business. Definitely don't charge a fixed fee because you will never be able to scale your business.

You will just keep on working and working and working. And the clients will want more and more work on a percentage of basic ad spend. So let's say you start with 25% of ad spend and a minimum amount is so much, Right? Let’s say $1,000. Just keep numbers simple. $1000, 25% would be $250, Right? And that's your minimum. Now, if you do a good job, you’re getting more leads, especially for eCommerce stores. If they have the stock and they want more and more sales, they are going to say, Arshad, I need more sales, okay, I can increase the budget, and we can buy more traffic. You go to $2000 a month, and all of a sudden you are earning $500 because 25% of $2000 is $500. Then they want more, and they go to $10,000 eventually or whenever you're earning as you grow. So as the budgets increase, then your percentage should go down. So it's a win-win situation for both of you.

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