Google Ads threshold account is a different way to pay that gives advertisers more choices. You get charged when you spend a certain amount or after 30 days, which is helpful for your budget. Just know, there might be more charges. This solution caters to businesses managing their expenses while navigating the intricacies of campaign financing.
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How Google Ads billing thresholds work
If you might not know, charging and billing are different. Charges are your click and bid expenses, while the bill is what Google charges your card.
Unlike most services, Google doesn’t bill your total charges monthly. It follows a 30-day cycle, billing when you reach a specific charge “threshold.” So, even if you have $670 in January charges, your bill won’t immediately show that.
Your initial spending limit is set at $50 by Google. This step is taken to ensure your ability to make payments before you proceed with your advertising campaign.
If you happen to spend $50 or more during your first 30 days, Google will charge you immediately and restart your billing period. Consequently, your spending threshold will be increased to $200.
Should your spending remain below $50 within the initial 30 days, you will be invoiced for the exact amount spent at the end of the billing cycle. During this time, your spending threshold will stay at $50 for the subsequent 30 days or until your spending surpasses $50.
Moving forward, if you reach the $200 spending threshold within the 30-day period, Google will bill you, reset the billing cycle, and elevate your spending threshold to $350.
Alternatively, if your spending falls short of $200, Google will charge you for the exact spending amount at the end of the 30-day period. Your spending threshold will be maintained at $200 until you exceed it.
This pattern continues for the Google Ads $350 spending threshold. The ultimate spending threshold is set at $500. Once your spending reaches $500, Google will invoice you, initiate a billing cycle reset, and maintain your spending threshold at $500.
Hence, the billing process operates on a 30-day cycle or when your spending reaches a specific threshold, rather than a traditional end-of-month schedule. This introduces two key considerations:
- Be billed more than once:
Due to the threshold-based billing mechanism, there’s a possibility of multiple billings occurring within a single calendar month. This scenario often confuses many clients and results in declined credit card charges.
- Threshold revert back to $50:
If your credit card payment is declined at any instance, your spending threshold will revert back to $50. Consequently, you’ll need to repeat the entire process from the beginning. This situation can severely disrupt your campaign’s progress if it becomes a recurring issue.
What is a Google Ads threshold account?
A Google threshold account refers to the billing arrangement set by Google for advertisers using their advertising platform. Instead of being billed at the end of each calendar month, advertisers are billed based on reaching specific spending thresholds or every 30 days, whichever comes first.
The threshold amount is the predefined spending limit that an advertiser needs to reach before Google charges their account. Once the threshold is met, Google will bill the advertiser and reset the billing cycle. This also comes with an increase in the spending threshold for future billing cycles.
The process repeats as the advertiser’s spending increases and reaches higher threshold levels, resulting in adjusted billing amounts and thresholds. This billing approach can lead to multiple charges occurring within the same calendar month if spending thresholds are reached more than once.
In summary, a Google Ads threshold account involves a billing system that triggers charges based on reaching spending thresholds or every 30 days, offering advertisers more flexibility in their payment schedule while potentially leading to multiple charges in a single month.
How to become eligible for a threshold account
Creating a Google threshold account isn’t possible as it’s not open to the general public. These types of accounts are exclusive to businesses that fulfill specific criteria. These criteria typically involve having a history of successful advertising on Google Ads, meeting a minimum monthly spending requirement, and maintaining a favorable payment track record.
If you’re keen to know more about Google threshold accounts, you can get in touch with Google Ads support.
However, you can modify your Google Ads account settings to charge you once you’ve reached a higher threshold than the default. In other words, your account won’t be billed until your ad spending reaches a particular amount. To set this up, here’s what you need to do:
- Log in to your Google Ads account.
- Click on the Billing icon.
- Choose Summary.
- Under the Payment threshold section, select Edit.
- Input your preferred payment threshold value.
- Click Save.
Remember, the minimum payment threshold can vary based on your billing country and currency. You can find the minimum threshold amount for your account within the Payment threshold section of your Google Ads account.
How to buy a Google Ads threshold account
Currently, there are many sellers offering Google Ads threshold accounts. You can contact communities or individuals on Reddit and Facebook to buy them.
However, the majority of these are mostly scammers. Google threshold accounts are not something that you can directly purchase. They are a billing arrangement provided by Google to eligible advertisers based on their credit history, spending history, and other factors.
Therefore, we still recommend that you use a different type of account if you want sustainable advertising and want to avoid losing money: Google Ads agency account. You can advertise comfortably with $50 or more.
Are you familiar with agency accounts? They provide distinct advantages compared to threshold accounts. To gain a deeper understanding, let’s delve into the similarities and differences between threshold and agency accounts.
>>> Read more: What Is a Google Ads Agency Account? Why Should You Use It?
Threshold account vs. agency account
Both Google Ads threshold accounts and agency accounts offer billing flexibility. They allow advertisers to manage their payments according to their financial situations and preferences.
While the threshold account might seem handy at first with its flexible payments, it’s not the safest option. It could be risky and limited compared to the agency account. Unlike the agency setup, where experts manage your campaigns and bills are clear, some threshold providers might not be trustworthy. Check out the table below for more details.
| Aspect | Threshold | Agency |
|---|---|---|
| Billing approach | Advertisers are charged when they hit spending limits or after 30 days, whichever is sooner. The cycle restarts with each charge and spending limits go up. | Advertisers pay in advance, but they have the option to withdraw any unspent budget. |
| Expertise and Support | Requires advertisers to manage their own campaigns | Provides professional campaign management |
| Troubleshooting | Advertisers must manage their own account issues | Handles payment and account-related issues |
| Communication | Acts as a single point of contact for clients | Direct communication between advertisers and Google |
| Trustworthiness | Some threshold account suppliers might be associated with scams | Agencies provide trusted account management services |
To avoid wasting money, it’s advisable to run Google Ads with the support of a certified Google Partner such as Mega Digital. We can guide you on how to make the most of your budget, and you can choose whether you want us to manage everything or if you’d rather run the campaign yourself using our advice.
What if you want to limit your monthly spending to a specific amount?
A common challenge businesses face is aligning their Google Ads spending with their existing real-world monthly budgets. Often, they want to avoid exceeding a specific amount within a single calendar month for financial reasons. In such cases, manual campaign pausing is required once the budget is reached to prevent further charges. Otherwise, charges can accumulate, triggering billing again at the next threshold.
At Mega Digital, if we manage your account, we take care of this task. We closely monitor accounts and halt campaigns as they approach your budget limit. Once the billing cycle resets, we resume the campaign. Google Ads billing can be complex, possibly intentionally so. Nevertheless, we hope this post clarifies matters, aiding you in better payment management. Best of luck!
Frequently asked questions
Why is my Google Ads threshold account charged more than once in a month?
Charges don’t typically occur only once per month or at the month’s end. They can take place multiple times during the month, triggered mainly by reaching predefined spending thresholds. This means you might face more than one charge within a month.
If you don’t reach your threshold in a month, the system will automatically charge you on the same date every month (with possible adjustments for shorter months or leap years).
- Example 1: If your threshold is $500 and your costs hit $1,500 in a month, you’ll face three $500 charges (3 x 500 = 1,500).
- Example 2: If your last charge was $500 on August 25th and you don’t reach your threshold again before August ends, your next charge will be on September 1st.
Why am I charged more than average daily budget on some days?
Internet search traffic varies daily, and to ensure your campaigns perform well despite these fluctuations, Google might allow up to 2x interactions than your daily budget states. This is over-delivery.
However, Google’s system guarantees that it won’t charge you more than the product of the number of days in your billing period and your daily budget. For example, if you set a $10 per day budget and receive monthly billing, your maximum payment would be $300.
If over delivery leads to higher costs in a billing period, we automatically credit your account. Say you spent $35 on clicks in a month, with a $1 daily budget (totaling $30 monthly), you’ll get a $5 overdelivery credit.
Wrap up
To sum up, a Google Ads threshold account helps you manage spending smartly. It’s about staying within your budget while advertising effectively. Remember, there could be extra charges, so keep an eye out. Overall, the threshold account serves as a valuable tool for businesses aiming to optimize their advertising strategies and financial planning.
