Warriors for Conversion Optimization!

10 replies
Hey Warriors,

I just literally stumbled into some info, more like connected the dots that have me pumped to share this with you.

Those of you who already sell conversion optimization (PPC + On Page) you're smart. Thanks for the knowledge all of you have shared!

The cool thing about offering that as a service is that you can pretty much be paid 90%+ on the backend. Some people charge a nominal set up fee, identify conversion goals, meet those goals, exceed those goals, then are paid accordingly.

If you help a company go from earning $1M through PPC annually, to $1.5M through PPC annually, how much is a fair price for them to pay you for having delivered that value? I think 15% is fair.

So if you help a guy earn another $500k he would not have otherwise had, he should pay you $75k - minimum...

It's easy to find these folks. They're all over Google.

Now that we have that covered...

Check out Pluralis - CrowdSource a super high converting landing page. Pay on the back end.

Check out Trada - CrowdSource your clients' PPC campaigns. Identify goals, and pay SUPER SIGNIFICANTLY LESS than you are charging your client.

Use them both for $10k or less total... Bank the $65k for yourself. Be honest with your clients and very clear in the language of your contracts that you will be hiring a team of experts through software as a service platforms...

This way it's easy for the client to agree to cooperate with these companies when you set up conference calls.

Yeah... So I just stumbled upon these two services a short while ago while "teaching myself" conversion optimization techniques and had to share asap!

I'm getting more and more interested in conversion optimization... Considering going 100000% conversion optimization... So much money in it...


Best,
TBB
#conversion #optimization #warriors
  • Profile picture of the author Rus Sells
    15% of gross sales is pretty high depending on the industry. I know for most service industries that's like paying a full sales commission without having the salesman fulfill the duties required by them.
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    • Profile picture of the author TheBigBee
      Originally Posted by Rus Sells View Post

      15% of gross sales is pretty high depending on the industry. I know for most service industries that's like paying a full sales commission without having the salesman fulfill the duties required by them.
      What's a good price? Considering you're only getting paid for year one performance and not subsequent years?
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      • Profile picture of the author Rus Sells
        Well it depends on the profit margins the business has to work with. You should get an intimate understanding of the prospects industry if you are going to try and charge a commission based performance fee. Otherwise a standard or set charge is best.

        If a business only slim profit margins then paying 15% could be devastating to cash flow.

        Originally Posted by TheBigBee View Post

        What's a good price? Considering you're only getting paid for year one performance and not subsequent years?
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        • Profile picture of the author TheBigBee
          Originally Posted by Rus Sells View Post

          Well it depends on the profit margins the business has to work with. You should get an intimate understanding of the prospects industry if you are going to try and charge a commission based performance fee. Otherwise a standard or set charge is best.

          If a business only slim profit margins then paying 15% could be devastating to cash flow.
          In my view their having gaping holes in their PPC is devastating to cash flow! :-).

          Nonetheless, I have been thinking of conversion optimization in the context of large ticket or B2B companies. Additionally, eCommerce companies. If folks are not hitting the checkout button, no matter what you're margins are, that's a problem you need to fix...
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          • Profile picture of the author Rus Sells
            Well having a bad ppc campaign isn't good for cash either. Why don't you get in touch with some companies and report back your success with charging 15% of the gross sales made from your PPC campaign.

            Originally Posted by TheBigBee View Post

            In my view their having gaping holes in their PPC is devastating to cash flow! :-).

            Nonetheless, I have been thinking of conversion optimization in the context of large ticket or B2B companies. Additionally, eCommerce companies. If folks are not hitting the checkout button, no matter what you're margins are, that's a problem you need to fix...
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            • Profile picture of the author TheBigBee
              Originally Posted by Rus Sells View Post

              Well having a bad ppc campaign isn't good for cash either. Why don't you get in touch with some companies and report back your success with charging 15% of the gross sales made from your PPC campaign.
              Rus,

              I personally prefer, and what works for my vertical is a pay per conversion scenario. However, a lot of verticals you can't do that in because there may be large tickets but low volume. It would be tough to only get paid $5-$10 per conversion for a lead that turned into a $250,000 sale. I guess one can be creative with fee structures. The more you know the facts about a vertical in and out, you can basically make "Godfather" offers everywhere.

              The key is also how bad they are feeling the pain. If I am having a dinner party and while vacuuming my cleaner breaks, then you knock selling $2,000 machines, I'm inclined to overspend because I am getting a great product exactly when I need it. If there were no dinner party, I may just hold off... Unless you're really really good.

              What's interesting about this industry to me is that there are all these variables that you have to make sense of. It's not like selling local SEO for a few hundred bucks a month.

              Finally, think of it like this, if McDonalds were shopping for a brand new logo, are they going to pay the local offliner $500 or so, or, are they going to some "fancy firm" to pay tens of thousands? Trust me, McDonalds will be happy to pay $25,000 for the same product they can get for $500.

              To a degree the same principles apply here I guess.

              Ultimately people buy from people, so they are really buying you... If you solve a real problem for them, it's on you to determine your worth. Especially if you've determined that they like you.

              To me, it seems like if I foray into this exclusively, I should prepare myself to spend 100% of my time not selling, rather relationship building. Seems like the best way to find people who see value in, and can afford to pay $100,000 to have a problem fixed... after it's been fixed.
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              • Profile picture of the author CreekChub
                Originally Posted by TheBigBee View Post

                Rus,

                I personally prefer, and what works for my vertical is a pay per conversion scenario. However, a lot of verticals you can't do that in because there may be large tickets but low volume. It would be tough to only get paid $5-$10 per conversion for a lead that turned into a $250,000 sale. I guess one can be creative with fee structures. The more you know the facts about a vertical in and out, you can basically make "Godfather" offers everywhere.

                The key is also how bad they are feeling the pain. If I am having a dinner party and while vacuuming my cleaner breaks, then you knock selling $2,000 machines, I'm inclined to overspend because I am getting a great product exactly when I need it. If there were no dinner party, I may just hold off... Unless you're really really good.

                What's interesting about this industry to me is that there are all these variables that you have to make sense of. It's not like selling local SEO for a few hundred bucks a month.

                Finally, think of it like this, if McDonalds were shopping for a brand new logo, are they going to pay the local offliner $500 or so, or, are they going to some "fancy firm" to pay tens of thousands? Trust me, McDonalds will be happy to pay $25,000 for the same product they can get for $500.

                To a degree the same principles apply here I guess.

                Ultimately people buy from people, so they are really buying you... If you solve a real problem for them, it's on you to determine your worth. Especially if you've determined that they like you.

                To me, it seems like if I foray into this exclusively, I should prepare myself to spend 100% of my time not selling, rather relationship building. Seems like the best way to find people who see value in, and can afford to pay $100,000 to have a problem fixed... after it's been fixed.
                It's not that everything you wrote above is wrong, it's just that it doesn't matter. Ultimately, Rus is dead on. If you bring in an extra $500K for your example client (gross) but his profit margin is 10% (not out of the real of possibility in some niches) and you're charging him 15%, that's a problem. You can't really expect to devise a pricing model until you know that critical piece of information. Or you can, but it won't have long term success. It's just that simple.

                No different than the challenges we sometimes run into with mom and pop shops and local SEO. You put out a $5K website with all of the bells and whistles that converts like nobody's business. You charge $1500/mo to SEO the hell out of it, create and optimize videos, handle G+ and Facebook, etc. etc. You own spots 1-10 on big G, and have the market sewn up. Then you find out that there are about 6 people a month looking for local Scrapbooking supplies (your client) in this small town and the average client value is $5.26 every month or two. Oops...
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                • Profile picture of the author TheBigBee
                  Originally Posted by CreekChub View Post

                  It's not that everything yo wrote above is wrong, it's just that it doesn't matter. Ultimately, Rus is dead on. If you bring in an extra $500K for your example client (gross) but his profit margin is 10% (not out of the real of possibility in some niches) and you're charging him 15%, that's a problem. You can't really expect to devise a pricing model until you know that critical piece of information. Or you can, but it won't have long term success. It's just that simple.

                  No different than the challenges we sometimes run into with mom and pop shops and local SEO. You put out a $5K website with all of the bells and whistles that converts like nobody's business. You charge $1500/mo to SEO the hell out of it, create and optimize videos, handle G+ and Facebook, etc. etc. You own spots 1-10 on big G, and have the market sewn up. Then you find out that there are about 6 people a month looking for local Scrapbooking supplies (your client) in this small town and the average client value is $5.26 every month or two. Oops...

                  Creek,

                  The main point here is that there are two great resources available to help anyone start making money in conversion optimization without having to risk much capital (Website + Linked In). Some folks like to deliver amazing value by outsourcing delivery. Some people would prefer to be 100% selling this and 0% time delivering so as to maximize efficiency and profits. I think there's a fit for that person relative to the resources I outlined above.

                  By the way. Don't we agree on 99% of the stuff you said in your first paragraph?
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                  • Profile picture of the author CreekChub
                    Originally Posted by TheBigBee View Post

                    Creek,

                    By the way. Don't we agree on 99% of the stuff you said in your first paragraph?
                    I think so. Pretty sure I do, at least...

                    My only point was that we tend to read a lot in this subforum about "leaving money on the table". I get that, as it relates to the other trend in here - which is offering services up for an insanely silly low price because the provider doesn't value him or herself. It's sort of a double edged sword though. Lots of folks on here really do suck at what we do for a living. They're probably charging their worth, but at the same time leaving a bad taste in the mouths of business owners - so that when I come along, I hear "no, sorry. We already had a crappy website that we paid $176.92 for. Websites don't work."

                    On the flip side - which is what I mentioned earlier: There are plenty of folks out there who are damn good at what they do, but wouldn't be wise to do it in certain niches - specifically small fringe markets where there just isn't much profit potential.

                    The scenario I gave above was a real one. I charge roughly those prices, and offer roughly those services. I also learned (the hard way) that selling those services and then delivering on them - doesn't always put money in the hands of my client. There are some business owners in some areas that really only stand to make a small amount of money from the internet. (Unless they broaden their market, which some are averse to doing). It was a tough lesson, but one that had to be learned. If I want to stick around, I can't do it by selling ice to (whatever the current PC term form Eskimo's is). Pissed off people aren't real hip on handing out referrals.

                    That aside - yes, I think we're pretty much in agreement. Didn't mean to come off as snide or arrogant.
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  • Profile picture of the author Cobaki
    So it all boil downs to that OP has found sources useful for those who'd like to earn for optimizing conversions. So about offering conversion optimization, I understand you are paid for a year of service but how are you going to get paid? Is it full or is it in installments? I am sorry as I am not too familiar with this.
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