Law Firm Marketing Agency
Google Ads is a powerful tool for driving leads, but its billing system can confuse even seasoned professionals.
Many law firms expect a predictable, end-of-month charge based on their budget. Instead, they’re met with multiple charges at seemingly random times. Add in agency management fees, and things can quickly feel opaque.
Here’s a quick post to help demystify Google Ads billing. We’ll explain how Google’s billing thresholds work, why your charges might differ from your monthly budget and what to watch for if your agency charges a management fee.
Why is my Google Ads budget different from the charge?
It’s a common misconception that your Google Ads charges should exactly match your budget.
Threshold does not equal budget. Google sets the threshold, and thresholds can change. As you run more ads, Google may raise that threshold which means fewer charges of larger amounts.
Google bills by threshold, not budget. When your ad spend hits a threshold, you’ll be automatically charged. However, you may be charged ONE time based on the threshold or MULTIPLE times for smaller amounts.
If the threshold for your account is $5,000, you’ll be charged every time you spend $5,000. In other words, Google will charge you whenever your ad spend hits your specific amount. It could be sooner than 30 days. Every time you reach the threshold, you’ll be charged.
If your threshold is $5,000 but you don’t reach that amount in 30 days, you’ll get charged something at the end of 30 days instead.
Note that the billing cycle is measured in 30-day cycles from when you start the ad, not in calendar months.
Find your threshold in your Billing Summary in your Google Ads account.
Although less common, some businesses are eligible for a Google credit line, if they meet certain requirements. With this method, you accrue costs and receive a monthly invoice. Then, you pay the invoice with a check or bank transfer. Your payments are within a timeframe that you’ve agreed to with Google, according to terms and conditions. To be eligible for this billing arrangement, your firm must have a Google ad account for a minimum of 6 months and spend a minimum of $5,000 for three of 12 months. You firm must also be registered as a business for a minimum of one year.
Management fees from your agency may be extra
If you have a marketing agency handling your Google Ads, you probably pay a separate management fee on top of your ad spend.
Typical management fees are a percentage of your monthly spend, between 15-25%.
Your agency bills you separately for management fees—they don’t come from Google. This bill typically comes at the end of the month.
If you’re uncertain about your bill, ask your agency about how and when they bill their fees.
How to monitor and manage your Google Ad spend
Actively monitor your account to prevent overspending and ensure your ad budget delivers the results your firm expects.
- Billing alerts: Set these up in Google so you get a notification when your spending reaches a certain threshold.
- Monitor transactions: The “Transactions” section shows all payment and billing activity.
- Review regularly: Check your Google Ads account to see daily spend and upcoming charges.
- Adjust as needed: You’re in the driver’s seat, even if you’re working with an agency. If spending is too high, work with your agency to pause campaigns or adjust bids to control costs.
While it’s normal for an agency to handle 100% of your Google Ads so you can be 100% hands-off, it’s a major red flag if they lock you out of your account or won’t share your data.
Review and next steps
Google Ads can be a powerful tool, but you need to understand the billing structure to spend wisely. You now know about Google’s billing thresholds and possible agency fees, and you’re better prepared to take responsibility for your Google Ads account.
The right agency partner can manage Google Ads with transparency and efficacy. Work closely with your agency to align expectations and set up smart alerts.
Book a consultation with our team to make a plan that optimizes your resources and gets results. Omnizant has been supporting growth-oriented law firms with a suite of digital assets and campaigns for more than a decade, and we’d love to help you.