luxurysem - 9:52 pm on Mar 22, 2007 (gmt 0)

Hi,

We are looking to outsource our PPC campaigns to an SEM agency and are on the fence about most agencies' pricing structure. Most agencies seem to be charging on a percentage of budget basis. And a few on a retainer or bank of hours basis.

Our budget is in excess of 100K monthly and we're not sure that paying on a percentage of budget makes sense.

Is it justifiable for agencies to charge clients this way especially for campaigns with larger budgets such as our own?

Do larger budgets justify the fees on a percentage basis? Or does a retainer make more sense?

What other pricing structures are there that we should look for or consider when talking to an SEM agency?

Any insights on the subject would be a great help!