Does Google Adwords Really Pay Back Comissions to Large Agencies?

Are large Adwords spenders getting commision checks?

[jlara]

I keep hearing the same story from Large PPC Management Vendors: "We are a Google Partner. Since we spend so much money with them, we get large rebate checks back".

More than one Google rep has categorically denied this to me, but if you hear the same story over and over again it certainly seems like it may be true. I remember the early days of PPC when the large SEOs begged for a traditional agency model and the answer was always a flat NO.

Can someone chime in with an absolute answer?

Thanks...

[Rehan]

Yes, in the EMEA region there is a "Best Practice Funding" program that provides a discount/subsidy to agencies that meet certain criteria. But that program will be gone as of Jan 1, 2009.

Google "Best Practice Funding" and you'll find more info.

[jlara]

That is pretty interesting. So it is not available in the USA? That looks like a bit of a disadvantage to the US SEMs when EMEA countries can have US based clients.

WebmasterWorld ranks #1 and #2 for that search... :)

[shorebreak]

jlara, I don't believe the EMEA BPF applies to any U.S. spend managed by an EMEA-based firm.

I'd be surprised, frankly, if some EMEA-based SEM firms weren't sneaking U.S. spend into their European account for rebate purposes.

[beesticles]

The main criteria for BPF is that the 'bill to' needs to be within EMEA, and the traffic needs to originate in EMEA. So it's not possible to sneak spend in if you're in the US, nor do EMEA-based SEMs have an advantage when managing US spend. As Rehan says, it all stops at the end of this year.

In Europe, Yahoo will give 5-10% discounts to agencies, and MSN will give 15%.

[shorebreak]

Beesticles,

I'd agree with you on everything but the idea that SEM's couldn't find a way around the rule if they wanted to. As you well know #:^) I'm no SEM guru like you, but given all the sneaky shtuff some SEM's do in general it wouldn't surprise me if one or two found a crafty way to get BPF they don't deserve.

[smallcompany]

So, in other words, if any of these agencies compete in US, they pay less then non-Europe based competitors. Correct?

[cyberandroid]

the only advantage they have is against agencies not from europe advertising in europe
they have no advantage in the US

[beesticles]

Shorebreak - a US SEM would at least need to have a registered office within the EMEA region that controls their MCC. I can't see any way around that. As you and I both know, setting up an office in Europe is an intensive process!