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AdWords Billing

After a year, I still have no clue what their billing policy is

         

facher

2:56 am on May 31, 2005 (gmt 0)

10+ Year Member



I have several ppc clients who I run adwords campaigns for. I signed up for the control center and preparing for the test while accumulating an aggregate spend that qaulifies, but I still can not for the life of me make any sense out of their billing schudule. I understand the following:
"We create an invoice for your advertising charges and bill your account every 30 days, or after a certain amount of advertising charges (as determined by history in the program) accrues.
The initial credit limit of $50 is incrementally raised each time an account hits its credit limit before 30 days have ended. The credit limit is first raised to US$200, then to US$350, and then to US$500."
But I dont get billed on exactly 30 day cycles and it seems to vary quite a bit. These accounts spend $40 - $400 per month so they are not huge but I need to get this straight. What can one do to ease this? Is there anyway to prepay like w/ overture? Thanks.

Spudstr

3:27 am on May 31, 2005 (gmt 0)

10+ Year Member



seems more like just a random billing to me when you go over your credit, unfortunetly they wont turn on prepay :(

RedWolf

5:07 am on May 31, 2005 (gmt 0)

10+ Year Member



I too wish thye would go with a prepay option since I use a debit card for all business expenses I can. So far with my account, they seem to hit pretty much on the same day of the month, unless it falls on a nonbusiness day then they go the business day before. I very occastionally have a random billing for a few days to a week, but when I ask support about this, they say that it is because of maintance and the main payment will be done on the standard monthly cycle.

mike_ppc

3:10 pm on May 31, 2005 (gmt 0)

10+ Year Member



Well, that is how AdWords is working. But I cannot believe that you don't have 200-500$ available on your CC at any time.

I couldn't believe that Overture's method of payment will gain some fans - since you are crediting Overture, as if you are their bank.

AdWordsAdvisor

6:46 pm on May 31, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



But I dont get billed on exactly 30 day cycles and it seems to vary quite a bit.

I think the seed for understanding the billing cycle is in the information you quoted, facher. Here's the key line, with some added emphasis on my part:

"We create an invoice for your advertising charges and bill your account every 30 days, OR after a certain amount of advertising charges (as determined by history in the program) accrues.

In other words, one is billed 30 days from the previous billing, or when a certain amount of clicks is accrued, whichever occurs first.

To go through the whole cycle, one is typically billed as follows:

* First billing will typically be thirty days after activation, or after $50.00 in clicks have accrued.

* The second billing will typically occur thirty days after the first billing, or, when $200.00 in clicks have accrued.

* Third billing will typically be thirty days after second billing, or, when $350.00 in clicks have accrued..

* Fourth billing typically occurs thirty days after third billing, or, when $500.00 in clicks have accrued.

* Once the $500.00 level has been reached, all successive billings will typically occur 30 days after the previous billing, or when $500.00 in clicks have been accrued.

I say "typically" because there can be factors that may impact this cycle. Here's an example of the most common:

Let's say you've been billed at the $150.00 level, and are now due to be billed when you accrue $200.00 in clicks. And let's say that the AdWords system then starts the billing process you when you've accrued $206.33 in clicks.

However, when the system goes to bill you, it notices that you were actually 'over-delivered' on your daily budget(s) by $25.00. You are credited with this amount just before the billing takes place, and the actual billing is therefore for $150.00.

Since you were not actually billed above $200.00, the system will then make your next billing at $200.00 rather than $350.00 as the schedule might seem to imply.

I hope that clears things up a bit. I do know it's different than an 'ordinary' 30 day cycle - but once it makes sense, it becomes second nature.

AWA

eWhisper

6:56 pm on May 31, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Greast explanation, AWA.

Google needs to add it to their FAQs.

facher

7:18 pm on May 31, 2005 (gmt 0)

10+ Year Member



AWA and everyone else. Thanks for the info...your explanation(s) definitely make sense but I'm still not sure how I fit into the mix. I have listed the dates / totals for this one specific client below and if any of you could let me know what I am missing here, I would truly appreciate it.

1/29/05 - $377.42
2/28/05 - $383.52
3/30/05 - $325.73
4/20/05 - $212.63
5/20/05 - $261.72

It seemed like the billing cycle was almost on the last day of the month but then between March and April it switched up? Once again, you guys are awesome, thanks for your help...

ams_david

8:35 pm on May 31, 2005 (gmt 0)

10+ Year Member



at the $500 and above level, it's been kinda consistent -- every $500-ish of spend, a bill shows up.

But infrequently google waits a while, and we see bills of $1000 and more.

gopi

1:30 am on Jun 1, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



AWA ,Google should introduce a prepay option so that the advertiser should be able to fund his account (unlimited without any ceiling) .

I wonder why google dont have this option yet, other business would love to charge the customer before the actual service is done!

AdWordsAdvisor

7:03 pm on Jun 1, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



It seemed like the billing cycle was almost on the last day of the month but then between March and April it switched up? Once again, you guys are awesome, thanks for your help...

Sorry not to have gotten back to this sooner. I have been especially with my 'day job' of late, and sort of have to sneak time away to post. ;)

Anyway, facher, I'm pretty sure the timing of the shift you noticed coincides with some updates to our billing system. Unfortunately, though, I am too short of time just now to go back and research that.

Honestly, AdWords support can be very effective in answering questions involving your billing cycle - as they can actually look at the account and evaluate the many factors at work - such as changes to one's daily budget, Maximum CPC, number of keywords, number of Ad Groups, and so on.

AWA ,Google should introduce a prepay option so that the advertiser should be able to fund his account (unlimited without any ceiling) .
I wonder why google dont have this option yet, other business would love to charge the customer before the actual service is done!

Understood, gopi, and I think patience will be rewarded in this case, over time. Being involved in this myself, though only in a small way, I find that it's one of those things that is a far simpler to imagine, than to implement. ;)

AWA

gopi

3:38 pm on Jun 2, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



>> I find that it's one of those things that is a far simpler to imagine, than to implement

I can see it AWA , but with Google's resources nothing is impossible :)

AdWordsAdvisor

4:52 pm on Jun 2, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I can see it AWA , but with Google's resources nothing is impossible :)

Heheh. Thanks for that confidence, gopi. ;)

Rest assured that advertiser requests for a wider array of payment options are definitely on our radar.

AWA