Attention Large Advertisers, You Are Getting Ripped Off!
The Problems with the current Pay Per Click Management Industry.

The PPC management companies need to start making a change. There is very little relation between amount of spend on a campaign and amount of work needed to run the most efficient and ROI producing search campaign. If this is widely known then why on earth are all of the companies charging this way? Paid search (PPC) adopted the business model from the traditional Ad Agency. Why would we adopt the business model that started 70 years ago? It just makes no sense at all.
The eVisibility difference -
eVisibility has made a bold step to start the migration of how companies pay for PPC Campaign Management. We are now offering flat rate, hourly pricing on all campaigns. Why is this better?
The answer is below:
eVisibility is exposing the Paid Search Industry’s dirty little secret:
Companies who are paid a percentage of ad spend are only motivated to spend as much as possible. They are only motivated to optimize your PPC campaign to the extent that you still spend as much as possible. They let thousands of keywords run and spend millions of dollars with absolutely zero ROI. These poor performing keywords are offset by the 10%-20% of keywords that actually turn a hefty profit. If the compensation structure is flawed, then the whole relationship is flawed. The ideal structure is an agency that is compensated by the hours that they dedicate to your PPC Campaign Management. Their ONE GOAL should be achieving the VERY BEST ROI possible based on your unique business needs. Too many times we have seen clients who came from other Pay Per Click Management Agencies who charge a 15% management fee on a $100K budget, who are throwing $50+K down the drain every month because it would have meant a huge pay cut for the old agency to trim the fat. If you pay a percentage of spend, you are literally paying someone to lie to you.
If we tell you that you can spend more, we are not doing so to get paid more. If we cut your spend in half and provide the same amount of business to you, then we still get paid the same level.
There are two types of advertiser who would benefit from this pricing model:
Large Budget Accounts ($20,000+) - Just because you have a large budget does not necessarily mean that your campaign is going to take longer to manage Why would you have to pay us more every time you wanted to increase your budget? We feel that maintaining a large campaign should simply be broken down into how many hours we work. You will get exactly what you pay for.
Small Budget Accounts – Being veterans in the search marketing industry, we can tell you that you get what you pay for. If you have a $2,000 a month budget and you are paying an agency 15% of your budget ($300), you are going to get 2-3 hours a month dedicated to your account. With the traditional percentage based model, you will not be treated as an equal to a large account. Take the cost of management versus spend out of the equation. I have seen $2,000 campaigns produce $3000 in revenue and I have seen them produce $50,000 in revenue for a business each month. Ask yourself what the opportunity cost of an improperly managed campaign. Managing your Paid search campaign should not be any different from a pricing standpoint in an SEO campaign.
Unique value in eVisibility Hourly Priced Model:
- Know that when we suggest you spend more, it’s not for our benefit
- Know that we will only spend dollars that make you money, not us
- We will shave all the fat from your account instantly, instead of keeping it there to get paid.
- Rest easy knowing that everything that can be done is being done despite budget size.
At eVisibility we are passionate about results. We see a large hole in logic of the majority of Paid Search Agencies. We would rather provide a benefit to both the advertiser and our business. In paid search the money doesn’t have to be in the medicine, it can be in the cure.
August 15, 2008 5:51 am Paid Search









August 15th, 2008 at 9:38 am
[…] wrote about their new ppc management price model this morning…and I walked away shaking my head a little bit because I felt like they were […]
August 27th, 2008 at 8:15 pm
Hey Alex,
I hope you don’t mind if I critique your pricing model on your blog. But this is hte first time I’ve seen this discussion actually come up, and I think that it’s worth exploring.
If we look at the traditional agencies there are typically two models.There is the hourly model, and also the percentage of spend model.
The problem with the percentage of spend model is that it encourages the agency to push a higher spend. The problem with the hourly is that much like the law world, it pushes an agency to bill more hours.
A model that I found fascinating is Clix Marketing. They charge a percentage of the revenue of the company. This motivates them to make more money for the client.
Now, I’m a little archaic - and I charge a percentage of spend on paid search. I just don’t want to expose myself by billing at the end of the month for the previous month’s work, nor do I want to count hours.
So I respect your move to an hourly rate - it makes things more transparent to clients.