Hey there, it's great you're thinking this through before committing. I've been on both sides of similar conversations (digital PR side but I've hired Google Ads pros for clients), so a few thoughts from experience.
The $150 setup fee does feel worryingly low - that's often a sign someone will rush through basics and skip the crucial prep work. The management fee is okay-ish, though an agency here in the UK/EU would usually start around £450-500 for that level of budget.
I'd gently agree that $1000 monthly spend is probably too low for most competitive service businesses. With a realistic budget, you're looking at $2500-3000/month at minimum to give the campaign a fighting chance. Google Ads takes a good 1-3 months to learn your conversions before it delivers consistent leads - and that's only if your tracking is spot on. In that learning phase, you're effectively burning budget with little return.
Also worth asking: is your website/landing page optimised for conversions? And do you have a Google Business Profile set up properly? Both can make a massive difference, especially for local businesses. If the freelancer hasn't mentioned any of this, that's a red flag.
Before you pay them a penny, I'd ask for a proper research phase that covers:
- Analysis of your business, customer profiles and goals
- Competitor and market positioning for your niche
- SEM research - keywords, estimated CPC and conversion rates
- Website/landing page audit (or plan to create one)
- A detailed report plus a meeting to discuss and refine it
- A campaign plan with a proposed monthly budget based on that analysis
All of that should be standard before anyone touches an ad account. It's a lot, but it's what gives you a fair shot at not wasting your budget. Hope that helps - good luck! 🙂