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AW Billing Question/Situation

Question About Billing Cycle

         

facher

2:10 am on Nov 16, 2005 (gmt 0)

10+ Year Member



I have a super basic super newbie type of question...We are getting more and more clients but the billing is getting confusing...Just wondering how some of you 'pros' handle the following:

1. Client has a $1000/month budget for AdWords
2. I charge them the $1000 at the beginning of the month and then we pay Google.
3. Google pulls the monthly charges on 12th of the month.
My question is, what do other folks do about billing their clients (Over is easier because we can prepay - but we don't have a gigantic PPC budget for AW so they won't let us prepay as far as I know). Any insight or advice into what others are doing would be a tremendous help. Thanks so much.

AdWordsAdvisor

8:36 pm on Nov 16, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Hi facher - I think I'll leave the bigger question of how to bill your clients for others to answer. But I did want to speak to the billing cycle, which may not be as you anticipate.

Google pulls the monthly charges on 12th of the month.

Actually, it is the exception rather than the rule to be billed on the same day every month. And with the budget you mention, it is quite unlikely to happen on a monthly cycle. Rather, you'll be billed when you accrue a certain value in clicks.

Here is some info from the AdWords Help Center that'll fill you in on the details of when you're billed - assuming that you are billed "postpay", which is the most common option:

...With the AdWords postpay option, you pay only for clicks or impressions you've actually received, so you are not billed in advance. 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 postpay billing cycle is explained in more detail below.

The Postpay Billing Cycle:

The initial credit limit of US$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. The If you run a cost-per-click (CPC) campaign, you accrue charges with every click; for a cost-per-impression (CPM) campaign, you accrue charges each time your ad is shown...

Excerpted from this page:

When do you bill?
[adwords.google.com...]

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