Performance based payment for running Adwords Campaigns

[MtraX]

I was just wondering whether anyone's doing this? Recently ran some wildly successful campaigns with minimum budgets and it hurts to see all the money clients are making without us being able to 'share' in that joy...

Do you:

1. Charge a commission on sale percentage?
2. Charge a percentage of ad budget spent?
3. Charge lower management fees in order to charge commission based fees?

Just a thought that crossed my mind recently and I have actually heard of Adwords Professionals doing this.

Regards
MtraX

[AussieWebmaster]

I have done work for a low flat fee and bonuses based on conversions.
Also percentage of spend
also straight conversion profits

I always charge a set up fee

[MtraX]

Hi AussieWebmaster

Thanx for the reply, would this solely apply with e-commerce sites where you have better measurability of conversion or are you talking about payment for leads?

How would you measure whether a sale has happened if the conversion is just a lead by email and you have no idea whether a sale has taken place?

Regards
MtraX

[AussieWebmaster]

can be by whatever measureable you want - leads have value to you or should.... analytics will tell you what traffic they generate etc. and your CRM can tell how they eventually convert offline... so use one and see what is working

[TigerWoodsOfSEM]

There are many different types of performances you can be measured against but I have typically worked on accounts that have a minimum monthly charge OR a percent of total spend, whichever is greater. Obviously the minimum amount and percent of spend will have to be determined by you in regards to how you can remain profitable.

This favors both ends as you are encouraged to increase spend to get paid higher commission all the while maintaining the accounts goal(s).

[MtraX]

Hi TWSEM, that sounds like a good one. Thanx for that.

[roligan]

I'm curious as to how much people charge as a set up fee and when you consider the set up completed.

I recognise that not everybody will disclose what they charge but hopefully some will. I charge $700 flat fee. For up to 5 adgroups with 4 ads per adgroup. I will do the whole process (keywords, ads, creating the adsgroups and monitoring for a few days). The whole thing won't take more than 5 - 7 hours.

Am I too cheap? Any feedback would be great?

[AussieWebmaster]

if you can get the work that seems like a good rate for small accounts - have done more for less - usually min is 500 but don't hold to such a small set up

20 ads - many very close or the same - five ad groups and a keyword search from suggest - maybe 2 hours worth of work

Guess you log in a lot to see how all are doing - do you work with setting conversion tracking?

[roligan]

Yeah it would be 5 sets of keywords in this case. Probably more like 4 hours since I spend a lot of time on the keywords.

I do log in but I use the client center so all account is on on page.

None of my clients sell online. They provide advice, sell properties, rent out properties so I'm not sure conversion tracking is that easy.

It would be great if there was away to follow a click all the way down to the customer completing the contact form for example.

[AussieWebmaster]

There are phone call tracking that can be tied in to conversion - setting up different numbers based on search terms

but can add an email grabber for newsletter for advice, newsletter for new listings - they get emailed a day before they go online etc.

[roligan]

I understand but still hard and expensive with few transactions every year.

[Discovery]

I'm a strong believer that a good SEM should move upstream and closer to the sales revenue. This requires excellent reporting and trust with the companies you do business with. If you are good and have a solid reputation you very likely will not have to lay out any capital and only put your sweat equity at risk. This additional risk you take on can be highly profitable.



Discovery

[TigerWoodsOfSEM]

Charge a very small increase in service fees before proposing to the client. Then in your proposal show them you are waiving your setup fee because you feel your relationship will help both parties out. Makes the prospect feel like they are getting a discount at the same time.

Discovery is right though, it's all about reporting and what you do with the data. Get a good reporting tool and proactively approach the data.