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An important assumption when using Reach Local's (or any simaler company) services is that their pay per click management software is so superior that even with their mark up built in, they will allow you to spend your pay per click advertising dollars better than using Google's own software.
Used their service to manage one pay per click campaign--TERRIBLE! I should be thankful though, as dealing with this company convinced me of the importance of organic SEO. Absolutely no moat, there are literally hundreds of companies like this running around offering to manage your pay per click campaign.. Somewhat simaler business model to Groupon--customer will use the service once, and never go back. Churn rate (after one campaign???) estimated to be 50 to 60%, which lines up with my experience.