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Adwords: Postpay or Prepay?

by Warrior Markets
10 replies
As the title says, which would you say was the better option, postpay or prepay?

I know it's perceived that it's currently not (easily?) possible to transfer between the two options, so I guess most won't have experience of both to compare. However, you could have views on the shortcomings of your chosen method - something which wouldn't be an issue with the alternative method. So what would these shortcomings be?

My analysis would suggest this:

Prepay:

pro - you won't get 'carried away'and overspend, as you will have to have the money before you spend it, so less likely to lose it all (quickly).

con - it would be harder to scale. By this I mean, if you find something profitable, and want to spend £5,000 on it (knowing it will make you, say, £10,000), you would need to have the £5,000 beforehand.

Postpay: The pros and cons would be the reverse of those for prepay.

Also, I've read in many places you can't switch between postpay and prepay, but from Google's own page, I got the impression you could; it would mean closing your account and then opening a new one.

I was just wondering what would be the drawback to this: is it a case of losing your 'history', and thus any bidding/QS advantage that comes with that? And would you deem that too big a price to pay? Also, has anyone done this? If so, how easy was it?

So, taking all that into account, what would you suggest someone start off with: prepay or postpay?

Thanks
#adwords #postpay #prepay
  • Profile picture of the author Scott Lyons
    Pre-Pay Google? No thanks, they have enough money thank you.

    Look at it like this:
    When you walk in to a restaurant, do you ask to pay the check in advance?

    Probably not. Only pay for what you get. there is no advantage to paying Google up front(except to them).
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  • Profile picture of the author yukinara
    depend, lol, I have 3 adwords account, all of them have $100 credit in them, and they are "prepaid" with promo code

    also, if you set daily limit, you probably won't get carried away and spend too much either
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    • Profile picture of the author nailrogers
      Originally Posted by yukinara View Post

      depend, lol, I have 3 adwords account, all of them have $100 credit in them, and they are "prepaid" with promo code

      also, if you set daily limit, you probably won't get carried away and spend too much either

      Use Daily Budget option and you won't get "carried away".

      For new accounts, I would strictly advise to use Prepaid mode. With the use of vouchers (promo code) you can covert your $15 to $150.
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  • Profile picture of the author tryinhere
    Originally Posted by Warrior Markets View Post

    As the title says, which would you say was the better option, post pay or prepay?

    I know it's perceived that it's currently not (easily?) possible to transfer between the two options, so I guess most won't have experience of both to compare. However, you could have views on the shortcomings of your chosen method - something which wouldn't be an issue with the alternative method. So what would these shortcomings be?

    My analysis would suggest this:

    Prepay:

    pro - you won't get 'carried away'and overspend, as you will have to have the money before you spend it, so less likely to lose it all (quickly).

    con - it would be harder to scale. By this I mean, if you find something profitable, and want to spend £5,000 on it (knowing it will make you, say, £10,000), you would need to have the £5,000 beforehand.

    Post pay: The pros and cons would be the reverse of those for prepay.

    Also, I've read in many places you can't switch between post pay and prepay, but from Google's own page, I got the impression you could; it would mean closing your account and then opening a new one.

    I was just wondering what would be the drawback to this: is it a case of losing your 'history', and thus any bidding/QS advantage that comes with that? And would you deem that too big a price to pay? Also, has anyone done this? If so, how easy was it?

    So, taking all that into account, what would you suggest someone start off with: prepay or post pay?

    Thanks
    One is no better or worse than the other, to be successful the only tool you need turned on is your own thinking and actions.

    Regardless of payment method you are building your business based on logic and as such even with a credit account you only set your daily spend target to meet and fall into line with your pre planned budget, not some whimsical fairy hope of belief that you may make money.

    Foolish bidding hoping you will make money is for the fairy stories of the people who live in hope and always ends bad.

    So regardless of payment type never get carried away and overspend beyond a solid business plan / budget.

    Any scaling up must also be done within your budget and planning, not some fairy tale again.

    You only need one small thing to be out and if you scale up you could slam a lot of dollars into the gutter very quickly. so even in scaling do this very cautious especially if new.

    As above regardless of payment method the real effort needs to go into planning and running a very tight and controlled business type structure and set up.

    If you need say a pre paid just to stop you overspending then it is probably best even more so you restrict your daily spend as it shows little self control and self management, and loose that control with the mighty G and you will pay the fiddler man for every song you want the organ grinders monkey to play.

    http://www.warriorforum.com/adsense-...t-adwords.html
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    • Profile picture of the author Warrior Markets
      Originally Posted by tryinhere View Post

      One is no better or worse than the other, to be successful the only tool you need turned on is your own thinking and actions.

      Regardless of payment method you are building your business based on logic and as such even with a credit account you only set your daily spend target to meet and fall into line with your pre planned budget, not some whimsical fairy hope of belief that you may make money.

      Foolish bidding hoping you will make money is for the fairy stories of the people who live in hope and always ends bad.

      So regardless of payment type never get carried away and overspend beyond a solid business plan / budget.

      Any scaling up must also be done within your budget and planning, not some fairy tale again.

      You only need one small thing to be out and if you scale up you could slam a lot of dollars into the gutter very quickly. so even in scaling do this very cautious especially if new.

      As above regardless of payment method the real effort needs to go into planning and running a very tight and controlled business type structure and set up.

      If you need say a pre paid just to stop you overspending then it is probably best even more so you restrict your daily spend as it shows little self control and self management, and loose that control with the mighty G and you will pay the fiddler man for every song you want the organ grinders monkey to play.

      http://www.warriorforum.com/adsense-...t-adwords.html

      Thanks for the reply.

      I do appreciate your point about the fundamentals - if these aren't right no method of Adwords payment is going to help.

      However, that point can be made about almost every factor - (eg product choice: if you're fundamentals aren't right, no product, however good, won't make you successful; traffic source: if you haven't got the basics right, the best traffic in the world won't help you).

      Therefore, my question was more based on your own experience - which do you think would be the better option, taking into account the fact that someone is new to Adwords, but also factoring in the fact that the payment can't be (easily) changed afterwards.

      Thanks again for the replies.
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      • Profile picture of the author tryinhere
        Originally Posted by Warrior Markets View Post

        based on your own experience - which do you think would be the better option, taking into account the fact that someone is new to Adwords, but also factoring in the fact that the payment can't be (easily) changed afterwards.
        .a
        OK based on my own experience and a honest answer if i were asked. It will not matter which method of payment you choose, the key will be the application of a budget that is manageable and within your means during a start up period /until you make some profits to re invest into your account.

        If for any reason people feel they were unable to keep to a predefined budget that they can afford (to pay of the money spent on a credit card) i would strongly suggest they opt for the pre pay option so they can pay into this account the set budget on a regular basis.

        Any advice that newbies especially should use an open ended credit card to monetize or max out an offer is and would be bad advice to give if you were responsible in offering advice.

        It would only take one small thing to be out, some bad testing or any other factor for that person to drop a lot of money in a very short space of time.

        That person is then left with a large debt they may struggle to pay and a adwords account that has no use as there are now no funds to run it.

        Again the very best advice for newbies regardless of payment method is to set a budget you can afford to pay regardless if your adwords makes money or not, and in many cases unless your blessed with fairy dust you will spend some before making some.
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  • Profile picture of the author ChrisBa
    post-pay for me Always like it better
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  • Profile picture of the author Igor Pauer
    We prefer prepay. Our cashflow is very good and we prefer to have full control over expenditures and not to be overcharged.

    Maximum we can loose is amount we prepaid.

    I already know few stories, when adwords accounts was hacked and hackers makes new campaigns with $100 clicks and spend much money fast. If you had postpay account, in this case you can loose heavily.
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  • Profile picture of the author Rigpa
    I signed up for an AdWords Account loooong time ago and can't remember if I have a Pre or Post paid account. Is there a way to check?
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