turnkey business blog

PPC (Pay-Per-Click) Management Services Outsourced

So my wife and I finally outsourced our PPC advertising to a company so we don’t have to handle any more annoying Yahoo Search Marketing, Google Adwords, and MSN PPC work.

We needed to find a company that specializes in Pay-Per-Click management so we could free ourselves up to build our business and traveling more. One of my friends and colleagues started outsourcing is PPC management to a company in Canada because they were less expensive than the PPC management companies in the United States, the UK, Australia, etc. My colleague told me that the money he spent all the PPC made up for all his campaign errors and mistakes because he was spending way too much money on bad keywords and bad campaign settings.

His company was paying over $10,000 per month for his campaigns in Yahoo, Google, and MSN. His Internet traffic is just for one state (California) for one of his business web sites and the state of Florida for his other online business. So he was spending around $5,000 for California and $5,000 for Florida. He runs used-car dealerships.

ppcadvertisingmanagementcompaniesAfter he outsourced his PPC management is costs for pay-per-click dropped to $7,000 and he paid the PPC management company $1000. $500 flat rate for each state. So now is costs are $8,000 per month and he doesn’t have to do any of the work keeping up with all of his Internet marketing campaigns. He suggested that my wife and I do the same with our PPC campaigns but I resisted thinking that we could do it all our own. The problem is that it is time-consuming and frankly a bit of a pain.

Our PPC Cost Before Outsourcing

Our the PPC costs were running us about $15,000 USD per month for all of our paid for traffic on our business web sites and my wife had a full-time job managing all of the traffic, campaigns, updates, on keyword research.

We used the same company from Canada (Calgary, Alberta) to handle our PPC work and I was pleasantly surprised to find out this company gives their new customers a two week trial period in which to test their services before we had to start paying their monthly fee. After we try them out for two weeks we were happy with the traffic increased we had and very happy with how are costs dropped. Even after we paid them their service fee we were ahead of the game.

Our $15,000 USD costs in PPC traffic dropped $11,000 and we pay them $2000 for their service. In our case our main business web site is a global (all countries) business. So our total cost to have traffic continue to our business site was now $12,000 and our traffic increased by over 100% looking at the traffic graph. The ROI on this was huge.

Here is a graph to show the traffic jump after using their PPC management service.

outsourcedppcmanagement1
So apparently my wife and I didn’t really know what we were doing and I wish I had outsourced our PPC work a long long time ago. You can see the dramatic rise in our traffic on this one business web site. At the end of the two-week trial period we got a call from Calgary Alberta asking us if we want to sign up for their monthly fee and continue their service. Uh…..we took it.

I suppose I should do a plug for them – PPC management company in Calgary, Alberta, Canada called Bonavista Web – definitely recommended because they really know what they’re doing and NO-ONE in the PPC management game gives a two-week trial period.

We have since used them for two other international business sites and they still gave us a two-week trial in which to test those markets. I suppose if you were confident enough you can’t offer trial periods.

Cheap PPC Management vs Expensive PPC Management

Cheap PPC Management Companies

I suppose I should do a little background on my past experience with hiring (outsourcing) our PPC work. There is a reason why I resisted outsourcing for so long even with the advice from my trusted colleague. We had tried using a PPC management company based in California and they were very expensive, there was no trial period, and their customer service was very weak. We could not get them on the phone if our life depended on it and it took them sometimes over a week before they would respond to our e-mails.

Furthermore, I chose them because they were the cheapest PPC management company I can find online and it was a complete waste of time. All they did was signed us up a Google Adwords account, throw up a batch of unresearched keywords and let it go. We spent too much money on low converting keywords and their testing methods were nonexistent. I will mention their name because I don’t like slagging companies. It’s just plain bad business and bad sportsmanship to do that.

Big Expensive PPC Management Companies

For small business owners who can’t afford the big expensive PPC management companies there is really no option except to find a company that charges a lot less and provides good customer support.

My daughter works for a large online advertising company and she told me they have some government clients and big corporate client accounts that spent over $100,000 per month for PPC management services. Yet they were only getting about $35,000 in traffic to their web sites!

I don’t see these kind of expensive PPC companies surviving in the future as business owners learn more about their options for online traffic and advertising. Basically small business owners like myself could never even consider using one of these big companies.

Mid-Range PPC Management Companies

payperclickmanagementbonavistawebEssentially what my colleague did was find a PPC management company that was a midrange company as far as fees and costs go.

This is the ticket and I believe this is the future of the PPC management business around the world. The smart companies will build their business one client at a time and do things like offer trial periods whereby you only pay for your traffic during the time of the trial and if you are satisfied with your investment you sign up for their services on a monthly basis.

One of the things I really liked about Bonavista Web is that they handled our seasonal requirements for Internet advertising and we have the option to turn off the tap (so to speak) for the months where we don’t want to spend any money on advertising.

With a small midrange PPC management company you can expect to spend approximately $300-$500 per month for one local area, $500-$700 per month for one State wide campaign, $1000-$1500 for a nationwide campaign, and $2000 to $5,000 for a global/international campaign(s).

We are paying less than that at Bonavista Web for our PPC management work but the numbers above should give you an approximate average of what these companies are charging of there.

Midrange or smaller companies always have better customer service and they’re usually hungrier than their expensive and bloated counterparts who don’t even bother to return calls because they are so preoccupied with their big government and corporate clients.

One thing I asked before I signed up for a trial period was;

“are you planning to grow significantly in the next five years?”

This is an important question for me because I have been burned in the past by companies that are small at the time we begin using their services and within the next five years they have grown to such a large extent that their customer service all but ceases. They assured me that they will continue to be a small company with low overhead and a modest client base. It took their word for it in so far they have kept their word. I call them once a month just to touch base. Actually, I didn’t call them in December.

How a PPC Management Company Charges

costperclickadvertisingmidrangecompanyAs you might will expect PPC management companies charge online but that is not what I’m talking about here. I am talking about the structure by which these companies charge their fees.

Some PPC companies charge you their fees directly to them and they open up online advertising campaigns with Google Awords, Yahoo Search Marketing, and MSN. Then they slap their service fees for their labor and keyword research on top of your traffic costs.

Many of the midrange companies will take your credit card information and set up your PPC accounts for you in your business name and they charge a flat rate for their fees. They manage the campaigns for you but they don’t actually charge your credit card for the traffic – that is charged by Google, Yahoo and MSN. This way if you decide to stop using their services you can’t negotiate the transfer of your campaign management to a different company or manager campaigns in-house.

Of course this method of charging can’t put the PPC management company at risk for unscrupulous clients will try to get all their signups and their campaigns and keywords all set up for themselves and then use their in-house employees to take over management. This is not necessarily a shady thing to do because most PPC management companies will charge you their fees right out of the gate and you are paying for the services they have provided. In fact, this is what many companies do.

With the company we are using (which I have already plugged) in Alberta they provide their two week trial period so you are obligated to use their services for a three month minimum excluding any mitigating circumstances such as your company going out of business or going bankrupt. I’m sure they would take this into account if you wanted to stop using their management services due to going out of business. They seem very reasonable in that respect.

I prefer to have our billing in this fashion because we don’t want to have to start all over again with our campaigns and be faced with a painful interruption in Internet traffic, and something ever happened to their small PPC company we would still have our accounts running with the major search engines and can find somebody else to manage the accounts with hardly a hiccup.

In Conclusion

In conclusion I highly recommend using a midrange PPC company to handle your online advertising campaigns for all of the above reasons. Make sure you ask lots of questions before agreeing to using their services. I would do like I did it ask about their growth and their human resources, because customer service is critical when it comes to monitoring your monthly costs.

Tags: , , , , , ,

Leave a Reply