Question

If a client's PPC account is to be managed based on a percentage model, what should be the minimum percentage charged on profit?

Answer 1

A typical range is 10%–20% of net profit generated from PPC-managed sales. The exact percentage depends on:

• Volume of sales (higher volume = lower % can make sense)
• Client’s profit margins (thin margins may limit flexibility)
• Complexity of ad management (multiple SKUs, channels, or advanced optimization = higher % justified)
• Results-driven model (if you're tying your compensation strictly to outcomes, aim for the higher end)

Recommended Minimum:

• 10% of profit is a reasonable starting point for lean or performance-based deals
• For premium or hands-on management, 15–20% is more common and sustainable
• If clients are hesitant on a profit-share model, consider a hybrid structure: base retainer + profit percentage. This protects your time while rewarding performance.