Where to for Agency Fees?

Following Google's removal of agency kick back

[Stronkie]

My search agency has proposed a new pricing model to run my paid search on the back of Google's announcement that there will no longer be an agency kick back.

I realise they need to take their cut from our budget, but I would like to make sure that i am getting a fair deal.

Anyone have any ideas what the industry standard is now?

I have been offered:

10% of media spend as management fee and I don't get any share of the agency kick back.
My average monthly budget is around 20-30k UK Pounds per month.
Any feedback would be greatly appreciated.

Alternatively they have offered a straight CPA in line with my affiliate marketing figures.

[briggidere]

for this kind of spend it may be worth looking into companies that could manage your account on a pay per hour basis rather than % of your budget. it could cost £2-3K per month. you could employ someone in house to do it for less than that.
heck, i'll do it for 5%.. lol

have a shop around, you'll find some companies do it different ways. my 2 cents anyway.

briggidere

[shorebreak]

10% sounds about right. IMO, anyone offering to do it on an hourly basis or <5% is not going to be in a position to make technology, operations, process or personnel investments necessary to ensure that your returns from paid search are better than your competitors.