The Hidden Problem with Percentage-Based PPC Pricing: Why Your Marketing Budget Deserves Better

Let's talk about a dirty little secret in the world of digital advertising: the percentage-based pricing model for PPC management.

Most agencies will tell you their interests are aligned with yours. But here's the brutal truth: when your PPC manager earns more as your ad spend increases, something doesn't add up.

Imagine this scenario: You hire a freelancer or agency charging a percentage of your ad spend. On the surface, it sounds fair. But dig deeper, and you'll see a fundamental misalignment of incentives.

The Perverse Incentive

Under a percentage model, your PPC manager actually gets penalised for being efficient. Think about that for a moment.

• Cut wasted ad spend? Their revenue drops.
• Optimise campaigns for better ROI? They make less money.
• Find smarter, more targeted ways to reach customers? Their paycheck shrinks.

This isn't just a theoretical problem. It's a systemic issue that can bleed your marketing budget dry.

What Real Alignment Looks Like

The goal of PPC isn't to spend more. It's to generate more valuable results for your business. More leads. More sales. Better return on investment. A flat-fee model changes everything. When your success isn't tied to how much you spend, but to the actual results you achieve, magic happens:

• Your PPC manager becomes a true partner
• Every pound is scrutinised for maximum impact
• Campaign optimisation becomes the primary focus
• Long-term growth trumps short-term spending

The Bottom Line

Not all PPC management is created equal. The pricing model matters—a lot.

If you're tired of agencies that treat your budget like a blank check, it's time to demand better. Look for partners who are incentivised by your success, not by inflating your spend.

Want PPC support that actually puts your business first? Let's talk strategy.