Pricing Models for PPC Agencies
PPC agencies usually set pricing along a spectrum from fixed-based pricing to performance-based pricing.
Both have their pros and cons.
Fixed pricing allows agency owners who have well-known cost structures to control margins and better forecast hiring needs. It allows clients the security of fixed, clear budgets for agency fees over time.
Performance-based pricing, on the other hand, does a better job of aligning the interests of both agency and client, giving agencies greater participation (and thus, greater incentive) in the success of their work. Though, it involves more risk for the agency owner and more uncertainty for the client.
Often, the ideal middle ground here is some sort of fixed + performance formula.
What types of agency fee structures have you all seen/used?
For more marketing insights, visit our blog: https://hop.online/blog/