Paying consultant per conversion?

Discussion in 'Google AdWords' started by hoover123, May 17, 2010.

  1. #1
    Hi there,

    I've done some Adwords work and I've been offered a consulting gig by a small company.

    However, instead of paying me per hour, they're keen to pay me per conversion (i.e. like a salesman, I guess: a commission on every conversion made through Adwords).

    This seems fair enough to me, and I reckon there's room for improvement in their current ads. However, my question is this.

    Has anyone else here ever been paid like this? If so, do you have any tips or thoughts on how best to structure the payment system? They're pretty flexible, so I can design my own scheme.

    best wishes
    Anna
     
    hoover123, May 17, 2010 IP
  2. Lucid Web Marketing

    Lucid Web Marketing Well-Known Member

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    #2
    > Has anyone else here ever been paid like this?

    Been asked and negotiated but client pulled out at last minute. I would gladly accept such arrangements, if it made sense and would cover or exceed my normal fee. Problem is, few would go for it since my normal fee is much cheaper.

    I would ask for an advance just for the setup, especially on a new account where there is no conversion history. So find out their conversion rate. Don't take any "it's about x%", you need hard numbers. If this isn't tracked in AW, forget it. Find out average clicks per month. Can you really improve the campaign? Usually you can. Would it make economic sense given the commission percentage? If not, ask for a minimum each month no matter what. Get control of account in all aspects. If client doesn't want to spend the CPC needed to get proper positioning or a budget to get near 100% share, forget it.
     
    Lucid Web Marketing, May 18, 2010 IP
  3. ppcboards.com

    ppcboards.com Peon

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    #3
    Most of our clients are charged CPA plus our percentage fee. This is really the optimum way to get paid, but it is harder to attract clients. This gives us a larger headroom to drive more conversions.
     
    ppcboards.com, May 18, 2010 IP
  4. santoshverma

    santoshverma Peon

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    #4
    pay per conversion, sounds great. But so many things must consider before decide how much to pay for each conversion. See the niche, competetion, PCC fo keywords. you can charge upto 20% adwords CPA.
     
    santoshverma, May 18, 2010 IP