PPC Consulting Commission
- SEO |
Hello, first post here. Long time listener, first time poster. 
I have been working with a client on a ~10k/mo adwords campaign and we both want to shift to a commission-based model for my pay. (right now I am hourly at an embarassingly low rate)
Most consultants/companies seem to charge a percentage of spend. So in this case I would charge say 15% of 10k and get paid $1,500/mo.
The problem with this approach is that it does not take performance into account. I've recently been able to lower his spend while keeping profits the same. Under the "normal" model, I would be shooting myself in the foot while helping my client!
I've been brainstorming several different commission models where performance increases reflect upon my commissions (with the opposite being true as well)
I'm leaning towards an ERS model, but wanted to get the opinions of others that have either been in this situation or can think outside of the box mathematically speaking.
For example, this is one idea:
Clicks x Profit/Conversions
Obviously that is a bogus equation, but hopefully it conveys the idea.
I have been working with a client on a ~10k/mo adwords campaign and we both want to shift to a commission-based model for my pay. (right now I am hourly at an embarassingly low rate)
Most consultants/companies seem to charge a percentage of spend. So in this case I would charge say 15% of 10k and get paid $1,500/mo.
The problem with this approach is that it does not take performance into account. I've recently been able to lower his spend while keeping profits the same. Under the "normal" model, I would be shooting myself in the foot while helping my client!
I've been brainstorming several different commission models where performance increases reflect upon my commissions (with the opposite being true as well)
I'm leaning towards an ERS model, but wanted to get the opinions of others that have either been in this situation or can think outside of the box mathematically speaking.
For example, this is one idea:
Clicks x Profit/Conversions
Obviously that is a bogus equation, but hopefully it conveys the idea.