My Facebook feed is FILLED with coaches and entrepreneurs sharing the latest and greatest tips…but I saw something yesterday that really bugged me. It was hands down the worst advice I’ve ever seen for an agency offering PPC services. Let’s dive in…
🚩 Agency Tip: DO NOT Use Your Card for Your Client’s Ad Spend
If anyone in your network tells you it’s a good idea to use your card for your client’s ad spend, you should immediately remove yourself from the conversation.
A client should own their own ad account and pay for their own ads. Period. End of sentence.
Anything other than that makes your agency look predatory at best or in a VERY vulnerable financial position at worst.
One of the most predatory business practices in the PPC agency industry is when an agency doesn’t let you own your ad account. They’re trying to create a pain of disconnect that isn’t in the best interest of the client.
This is becoming more known to clients who won’t consider working with an agency that “black boxes” the ad account.
Cash Flow Risk: If you cover ad spend upfront, there’s a risk to your cash flow, especially if clients delay payments or default on their invoices. This can strain your financial resources, and sink your agency if you aren’t careful.
Credit Risk: You assume the credit risk by paying for ads in advance. If a client fails to pay the agency back, the agency is still liable for the charges incurred on their credit card.
Billing Disputes: There might be disputes over the specifics of billing, such as the breakdown of ad spend versus agency fees, especially if not clearly defined and agreed upon beforehand. This can lead to strained client relationships.
Seriously, just don’t do this. Get access to an account via Google’s MCC and make sure they have their payment method on file. Then get to work.
