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Performance based SEO - question on how to price?

by FreelanceScribe
13 replies
I've just been invited to do some SEO work for a client. His website is nowhere in organic search results, so it's a matter of optimizing pages and content with better keywords and getting backlinks to his site.

However, he wants this to be performance based with the idea he will pay me a percentage of his increased sales. I don't like this as I have no control over his sales conversions.

I would appreciate some tips on how to best approach performance based SEO. What to measure? How to set up the performance criteria?

Alex
#based #performance #price #question #seo
  • Profile picture of the author Christian Little
    Tell him you'll require access to his Google Analytics account and you'll only do it if he has proper conversion tracking enabled. That way you can run reports in GA that show you how many sales and revenue you have generated organically.

    As for a pricing criteria, it would really depend on what the product is. But I would go for a % of all organic sales. But every product has a different profit margin and you don't want to charge him his entire profit margin on every sale, otherwise he won't be making any money off what you are doing.
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  • Profile picture of the author mkpoway
    Unless you are desperate for money, or you are doing it for the testimonial, I would avoid it. Always try to get paid up front, because clients will hassle you about payment at the other end.
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  • Profile picture of the author Money on the Side
    I know Dan Kennedy only works this way in his marketing business. I believe he charges 25% of the increase in business. I guess my problem with this is them showing you their books and them being honest with you about how much they are truly making based on your efforts.

    It sounds good in theory and I'm sure its probably the most lucrative way to go, in addition to being a win-win for everyone. The logistics of making it happen is what I struggle with.
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  • Profile picture of the author Michael Truong
    I agree with killercopy.

    It's going to be much more of a hassle chasing up payments and making sure the client remains honest when the time comes.

    I wouldn't do it unless there's money upfront in it for you but that's just my opinion.

    Reason why is that you're only doing the SEO but your not optimizing his sales pages so you really don't have any control over the conversions.
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  • Profile picture of the author askloz
    Adsense / PPC / SEO Discussion Forum

    Originally Posted by aesweb View Post

    I've just been invited to do some SEO work for a client. His website is nowhere in organic search results, so it's a matter of optimizing pages and content with better keywords and getting backlinks to his site.

    However, he wants this to be performance based with the idea he will pay me a percentage of his increased sales. I don't like this as I have no control over his sales conversions.

    I would appreciate some tips on how to best approach performance based SEO. What to measure? How to set up the performance criteria?

    Alex
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  • Profile picture of the author John Romaine
    aesweb.

    You have NO CONTROL over their internal business operations.

    Therefore, NEVER agree to performance based SEO based upon SALES. EVER!

    You should always PREQUALIFY a client before working with them. If it doesnt feel right, or they are making silly demands that are outside that of your business system - then AVOID THEM.
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  • Profile picture of the author stodog77
    I have one client that I do all their marketing for an a revenue sharing model. We have an exclusive contract with them, and they pay us very well for any sales. I can track all sales because I have my own website, and dedicated phone number. We have a very good relationship, and they know if they screw me they screw themselves.

    This being said, in the past I have had a couple revenue sharing deals go bad where I didn't get paid, but that was when I was a bit naive to the process.
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    • Profile picture of the author RichBeck
      Originally Posted by stodog77 View Post

      This being said, in the past I have had a couple revenue sharing deals go bad where I didn't get paid, but that was when I was a bit naive to the process.
      stodog77,

      When these went bad, were you using a method where the client paid you "manually?" Did you ever research or try out any of the systems that automatically splits the revenue at time of sale?

      Thanks!

      Rich Beck BCIP, MCSD, MCIS
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      • Profile picture of the author stodog77
        Originally Posted by RichBeck View Post

        stodog77,

        When these went bad, were you using a method where the client paid you "manually?" Did you ever research or try out any of the systems that automatically splits the revenue at time of sale?

        Thanks!

        Rich
        No. They were more of a handshake type deals which was the mistake I made. They just weren't set up properly and it was much easier for them to not pay me. It really only happen one time, and it was a small amount ($750) the guy owed me. The other 2-3 I ran with people I got paid nicely, they simply fizzled out because I got too busy with other projects that were making me more money.

        I only do one rev share now. Again I am set as their sole marketing partner. So I am more like the marketing arm of the company. I have my own backend database that I can log into at anytime and see all the sales that I generate. I also have a dedicated phone number so I can monitor that. We also signed a contract that laid out everything as far as pay schedules, non compete/disclosures, terminations ect.. I basically made sure my ass was covered

        It really comes down to being comfortable with the deal. The company I work with happens to be right down the street from me, so we go to lunch once a month and talk about things face to face which is one aspect I like.

        As far as splitting the sale as it comes in, those programs are definitely out there. You just have to have it set up. It would suspect it would be much harder for them to rip you off if this is in place.

        One thing you can do is get them to pay you a set fee up front to protect you in the beginning. At least the amount you are going to spend to get it up and running. This way nothing is really coming out of your pocket.
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  • Profile picture of the author RichBeck
    Alex,

    I agree with many of the posts; get paid up front.

    However, I like playing Devil's Advocate. :-) This would be an interesting test. Why not get paid two ways? First, get direct access to their Google Analytics. Charge them so much for each new visitor you bring them. Second, set up the web site using one of the "off the shelf" affiliate systems. Then, a sale is made, the revenue is divided, money goes to your PayPal (or other) account and you are done. No worrying about hassles or not getting payments from your client. I am sure there is some tweaking that this would need.

    This could be an awesome reputation builder. It could give you some very solid testimonials and word of mouth. Imagine doubling or tripling a businesses' sales. That is very powerful!

    Once you start to outsource many tasks, you could make a killing on these. They become little cash registers instead of one time payments. It really depends upon which business model you prefer.

    I hope this gives you some food for thought.

    All the Best,

    Rich Beck BCIP, MCSD, MCIS
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  • Profile picture of the author Always-A-Warrior
    Upfront fee or nothing. I would not do it even if he gave me 100% of his commission.
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  • Profile picture of the author FreelanceScribe
    Thanks greatly for all the feedback. As i don't really know this guy and he originally contacted me to edit the layout of his website I think I'll take head of the caution expressed by just about everybody. Unless he agrees to pay me upfront for the work that clearly needs to be done, I'll decline unless he himself comes up with a payment plan I feel has some credibility.

    My core business is freelance writing and web design and although I know what needs to be done I'd be wary of an agreement that could be totally unreliable. Thank guys! I appreciate your advice.
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  • Profile picture of the author RichBeck
    I appreciate your detailed reply. It gives me some things to ponder.

    Take Care,

    Rich Beck BCIP, MCSD, MCIS
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