How to price PPC management in a proposal

Start with what the work costs you

Every model below needs one number first: what a normal month on this account costs you. List the recurring work, estimate the hours, and multiply by your effective hourly rate. That’s what you need to earn per working hour once sales, admin and learning are paid for. It’s higher than the rate you’d quote for an hour of advice.

Here is a worked example. Every number in it is hypothetical. Swap in your own hours and rate. It is not a statement of what PPC management should cost.

In this example, $1,200 a month is the floor. Any model you choose should land at or above it on this account. Below it, you’re paying to manage their ads.

Model 1: a flat monthly fee

One fixed fee each month, whatever the client spends. In the example, that’s $1,200 a month. It’s the easiest model to explain, and the client can budget for it.

When it fits: the budget is steady, the campaigns are settled, and the work is about the same every month. It also suits clients who distrust percentage pricing. With a flat fee, you gain nothing from telling them to spend more.

Watch for: budgets that grow. More spend often means more campaigns and more tests. Write a review point into the proposal, such as “The fee is reviewed if monthly ad spend changes by more than half.”

Model 2: a percentage of ad spend

Your fee is a set share of what the client spends on ads each month. In the example, that’s 12%. At $10,000 of spend, the fee is $1,200, the same as the flat fee. At $5,000, it drops to $600, well under the $1,200 the work costs you.

When it fits: larger accounts where spend rises and falls with the season, or will grow over the term. The fee moves with the size of the job, and nobody has to renegotiate.

Watch for: small budgets, and the look of self-interest. Say in the proposal that budget increases are agreed in writing, with the reason, before they happen.

Model 3: a hybrid with a minimum

A percentage of spend, but never less than a set minimum. In the example: 12% of spend, with a $1,200 minimum. Small budgets pay the minimum, and larger ones pay the percentage. Some agencies write it the other way round: a flat base fee plus a smaller percentage above a spend threshold. Both protect the floor.

When it fits: most new accounts, where you don’t yet know how much the budget will grow. It’s also the easiest way to take on a small account without losing money on it.

Price setup separately

Month one isn’t a normal month. You audit the account, rebuild or restructure the campaigns, and set up conversion tracking so every later number means something. Price that as a one-time line. In the example, 20 hours at $75 is a $1,500 setup fee. It keeps the monthly fee honest. It also covers you if a client leaves in month two, after the heaviest work is done.

Keep ad spend off your invoice

The cleanest setup is the client’s own card on their own Google Ads account. You invoice your fee and nothing else. The account and its history stay theirs. If you do pay the platform for them, bill the spend at cost on its own line, and say when you need the money in hand.

Report the two numbers apart as well. Each monthly report should show ad spend against the agreed budget, then your fee as a separate line. If you report cost per lead, show it on ad spend alone and on spend plus your fee. The client sees what each one bought, and a percentage fee never hides inside the media cost.

Set a minimum term

New campaigns need time to gather data before the tests mean anything. A short minimum term, often three months, gives the restructure a fair run. After that, move to rolling monthly with a notice period, such as 30 days. Explain the reason in one sentence, or the term looks like a lock-in.

What to promise, and what not to

Promise what you control: the work, the testing rhythm, the report and the metrics in it. Don’t promise a cost per lead or a return on ad spend. You don’t control the auction, the client’s landing pages or how fast their team calls leads back. Say plainly that results can’t be guaranteed. Serious clients trust that more than a promise.

Wording for the pricing section

Put the price review in writing too: “Fees are reviewed every twelve months with 60 days’ notice.” It makes future increases routine instead of awkward.

Putting it into the proposal

Our free PPC proposal template has the structure: audit findings, scope, conversion tracking, what’s not included, reporting, the fee and the ad spend on separate lines. The same method works for other retainers. See how to price an SEO retainer and how to price social media management. For the rest of the document, see how to write a freelance proposal.

We make ApeiroCraft, where those templates open. Setup and the monthly fee go in as pricing line items, the client signs on the proposal link, and the accepted proposal becomes the first invoice in one click. One honest limit: ApeiroCraft doesn’t send recurring invoices automatically. For months two onwards, you save the invoice as a template and send it each month. Your invoice links to your own payment page; we never process the payment.