Google Ads - How We Charge for Our Management
Digital agencies can make money with Google Ads in several ways:
- Service Fees: Agencies typically charge clients a fee for managing their Google Ads campaigns. This can be a flat monthly fee, a percentage of the ad spend, or a performance-based fee. Motherboard charges an established monthly fee for managing our clients' Google Ads accounts. See https://clickitstores.com/product-category/e-marketing for all plans.
- Ad Spend Markup: Some agencies add a markup to the ad spend. For example, if a client has a budget of $10,000, the agency might charge an additional 10-20% as a management fee. At the current time, Motherboard does not add a markup.
- Performance Bonuses: Agencies might also earn bonuses based on campaign performance. If certain KPIs (Key Performance Indicators) are met, the agency receives an additional payment. At the current time, Motherboard does not typically ask for a performance bonus, but some unique requests may still be optional.
- Consulting Fees: Beyond managing ads, agencies can offer consulting services to help clients optimize their overall digital marketing strategy. Motherboard charges a reasonable hourly rate for all its services over and beyond the scope of any assignment, but only we agreed to and understood by the client.
Regarding commissions from Google, Google does not pay agencies a commission for managing ads. Instead, Google offers a partner program where agencies can earn points and achieve different partner levels based on their performance and the amount of ad spend they manage. These points can be used to acquire Google-branded merchandise and other benefits1. Motherboard is working towards improving its reputation with Google, and the point system may ultimately provide some value back to all clients.
Does this help clarify how digital agencies, in general, generate revenue with Google Ads and what Motherboard charges? If you have more questions or need further details, please ask us!