Appropriate PPC Account Management Fee Structure

Hi there,

We're a small search marketing company offering as part of our services PPC Account Management. At the present time we usually charge a setup fee and a monthly fixed price retainer for managing the account on our clients behalf. To me this is the most obvious charging methodology.

However the majority of agencies still seem to prefer charging on a commision basis with perhaps some bonus built in if they reach particular targets or campaign objectives.

I can see what benefit the agency has from charging this way i.e increased turnover etc. but i'm struggling to see what the benefit is to the client, if the more the agency spends the higher the commision they make. Surely this doesn't make financial sense in any respect.

I'd be interested to get some feedback from other agencies and end users on this.

Thanks in advance.

Andrew Alfrey
www.aspirica.com