posted on 25 December 2011 | posted in Uncategorised
If you have decided to use a PPC Management companies, then you might be a bit confused by the way that they charge. Different companies tend to charge in different ways and so this can make it difficult to compare them.
Some companies just charge a flat fee. This means that you know exactly how much you will have to pay them and what they will be doing for that money. This is a great way to do things because you know exactly what you will have to pay out.
Some will charge according to how much you spend on advertising. They will charge you a percentage of that. This means that how much you pay them will vary depending on how much you pay out for advertising and so you will not be able to know how much you will be paying out exactly, on a month on month basis. However it does have some great advantages. The PPC company will be encouraging you to spend more money on advertising, so that they can be paid more. However, you will only want to spend more, if you know that the money is a good investment. So you will only pay for more advertising, if you can see that the advertising is increasing your sales and you are making more profit. Obviously, this will mean that you will need to keep a close eye on your statistics, but you will probably want to do this anyway, as you will want to see how many more sales you are generating from the advertising.
Some companies charge partly a fixed fee and partly a percentage. Others charge a performance bonus. It is up to you which you choose, but it needs to be something that you feel will not only work best for you, but will get the best possible performance from the company you are using.