1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

How to charge for Adwords Management Service?

Discussion in 'Adwords' started by rippy, Apr 3, 2013.

  1. rippy

    rippy Regular Member

    Joined:
    Sep 24, 2008
    Messages:
    398
    Likes Received:
    131
    Location:
    Euro - Ozzie
    I have a client that wants me to do Adwords Management Service.

    When I pay for Adwords clicks they are tax free as I am based in Australia and Google in Singapore if I am not mistaking.

    But when client needs to pay me I need to include tax as he is also in Australia.

    So markup looks like this:

    Adwords Spend + my management fee + Tax

    example:

    $1000 spent on adwords + 15% management fee + 10% tax = $1265

    But I am only paying $1000 to google if I were to run my own campaign, the thing I am trying to say is that client this way is wasting 10% for tax. How do you people avoid this?
    If the client goes straight to google and does his own campaign he would be paying $1000 only, but if he goes thrum me I need to charge him 15% my management fee + 10% GST tax.

    Help.
     
  2. kveldulv

    kveldulv Registered Member

    Joined:
    Aug 19, 2009
    Messages:
    76
    Likes Received:
    33
    I've tried all the different models and thesedays I just keep it really simple.
    - Invoice upfront at beginning of every month.
    - Client pays for their traffic (elastic credit limits while they give you a rating).
    if I wanted that traffic I'd buy it myself, for myself.
    - SO client cards/details go in there.

    I view adwords accounts as client's property. You win no friends holding them by the balls with ownership. Moreover you're adding value by helping that company understand and analyse their traffic over time.
    Live and die by the sword keeps everyone honest.
    If anything nasty happens, get a laywer or a baseball bat.

    I've had to restart adwords accounts from agencies who hold them to themselves, and I think it's a shitty way to do business personally. Add yourself as admin and you can do anything necessary for kicking ass.

    Call your google rep if you have any trouble with the initial billing setup, as it can be obtuse at times.
    I sometimes use the google rep as a second set of eyes to make sure I didn't miss anything too.

    RE: GST
    So yea, you can make 10% on GST, but it's a fuckaround, and more hassle than it's worth.
    For aussies, put 10% as the last item on your invoice, so 5k becomes 5.5.
    If in doubt, as your, or their accountant.

    Firstly conduct business according to the laws of where your company is based.
     
  3. Endire

    Endire Elite Member Premium Member

    Joined:
    Mar 27, 2012
    Messages:
    1,756
    Likes Received:
    1,061
    Gender:
    Male
    Rippy,

    I don't really have experience with the tax issue but I agree with a lot of the things kveldulv is saying. I would avoid setting up accounts in your name and holding it over the client's head. I have never understood business owners that do this with adwords accounts. Eventually, the client may need to have someone else manage the account or manage it themselves. If so, this is impossible if tis under someone else's account and is a bad business practice.

    One thing I can comment on is your last statement about the client doing things themselves to avoid costs. If you are aiming to keep your fees as they are, you must add value to your services. This is more of a sales issue than anything. If the client doesn't see value in what you are providing, it won't matter what you are charging for because they won't want to buy it. Talk about the cost of operation it themselves. Yes they will save the money they have to pay you to do it but at what cost? They will have to spend their own time, their own resources managing the account. How much is that lost time worth to them when they could be spending it doing something else?

    Maybe you can find some ideas in the Google reseller guide,

    http://dealer.localmanagement.us/pdf/Guide_to_Selling_AdWords.pdf

    Best,

    Shawn
     
  4. Affiliate Mgr Dave

    Affiliate Mgr Dave Registered Member

    Joined:
    Jun 2, 2010
    Messages:
    71
    Likes Received:
    13
    Yeah I just charge 10% to help a couple friends out. Get the money up front, and personally I have a unique login setup for both of them. I have heard fees ranging from 10-20% of dollars spent, so I think you are right on track. Sure, they can choose to manage the account themselves but most people in this world don't have a clue what they are doing with google or any kind of PPC management, so to them the fee is well worth it.
     
  5. umarfatih

    umarfatih Junior Member

    Joined:
    Feb 4, 2013
    Messages:
    199
    Likes Received:
    29
    i'm also looking for someone who can help me out on ppc campaign..
     
  6. MaximusNeo

    MaximusNeo Newbie

    Joined:
    Apr 17, 2013
    Messages:
    16
    Likes Received:
    2
    I setup a clients ad words account inside mine solely because I was unaware google gave the tool admin multiple other peoples ad word accounts for them, and most of my clients are not very computer literate. I would hope nobody would hold it over their clients head, but yes it is a good idea to setup their own adwords account and make yourself an admin then let them have the account ownership. It is a mess when you have multiple clients try to separate their stuff back to them from 1 big account. I agree I would advise against it. Though 10%-15% sounds reasonable, and if they have a huge marketing budget they can afford you at that rate. If they are small you can always discount it to help seal the deal again, you gotta learn to read your clients and be able to judge what price you need to say to get them to take your offer.

    Also setting them up with their own account, usually google is sending out free $100 in ad words for the 1st $25 spend and you can help seal the deal with that. This only works on new accounts.