I’m often asked, “Why do you offer flat fee priced PPC plans?” The answer is really quite simple although some think that it’s not a wise business decision. In this quick blog, I will try to explain the rationale behind flat fee PPC programs and why we started them and why we won’t leave them in the foreseeable future.
Why Flat Fee PPC?
Why The main reason for flat fee PCC programs is based on incentive. Incentive (Motivation) is what makes the world go ’round. It’s our belief that a traditional percentage based PPC management programs give an incentive to the PPC management firm to spend all the money that they can on behalf of the client. Why? Because when they spend more they make more. That incentive (motivation) isn’t in the best interest of the client, but critics add that flat fee PPC management isn’t in the interest of the management firm. I completely disagree! As a company, our responsibility must ALWAYS be to the client. While we must pay attention to the bottom line, flat fee PPC management, and the management firm’s bottom line interests aren’t mutually exclusive. Let me explain further. If our company maintains its focus on the client and does the best that it can to create effective campaigns (regardless of spend amount), Clients will recognize this effort and we, in turn, build significant client loyalty. Client Loyalty is the primary factor in maintaining a healthy bottom line.
Tell me what’s the difference in man hours between managing $10,000 worth of PPC or Managing $16,000 worth of PPC advertising? In reality, for a well-run PPC management firm? Not Much! Why should the charge be different? Percentage based PPC management programs provide the wrong incentive.
What’s the difference in running a PPC program for a client for $10,000 per month for 5 years, vs. losing that client to a competitor because the client constantly feels like we are trying to drain their budget by spending as much as we can? Tons!
I’ll take incredible customer loyalty because we are doing the best job we can for a client than the few extra percentage points we might gain today in a percentage based program. Flat Fee PPC Management means greater customer attention, greater customer loyalty, thus greater customer retention, and ultimately a better bottom line. IT’s win-win for us and the client.