medium sized business, within 6 weeks, they are making sales, need ideas for how to move forward

by 16 replies
21
hey all...

working for a medium sized HVAC installation/sales company serving all of our province. Their competition is either the top 5 companies everyone knows, or a bunch of little guys.

They have the ability to price match anyone. Also they offer good stuff and have a great homestars rating...

Soooo....

Started working for them about 6 weeks ago, they are getting about 5-10 phone calls a day from my work already, and about 1-2 sales a day on average.

Each sale is worth like 500-1000 profit depending on many factors...

So here is the thing...

They are a company built by salesmen. So they put pressure and expect results on everything.

This means I put like 0 time into anything long term and just built a killer adwords campaign with a few landing pages, callrail numbers, call extensions etc...

It works.... But the conversion rate is not really high. I am still not getting correct conversion numbers yet, but I'd say about 5-7 clicks turns into a phone call, and 1/4 phone calls becomes a solid lead...

So far they are happy that they see results so fast, but they keep pressuring me more and more to deliver more, higher ROI etc... AT LEAST at this point they are not thinking of stopping because they are seeing success.

I told them we are just doing Adwords and its good for instant conversions, but long term we want to get more general visibility in directories, SEO etc... He likes the idea....

BUT they expect me to pay for the SEO/local stuff from my paycheque!!

Here is where I expect some good advice from successful ppl over here...

my original offer was 5000 a month for the full range of services, and converting that system into a performance based model of 800-1000 per sale (not lead) once the campaign got underway. They haggled with me, so I cut back everything to just website and adwords for 3000 a month, 750 a week. The goal being lets get to per-sale which would be 800 or so per sale, if I can close 4 or more a month thats already more then 3000 and I have them happy hopefully long term...

So now I think at first they were skeptical but willing to try, but not really thinking something would come from it. Now however, since there is action, and they are spending money on adwords (Since they know it brings sales) They went from $100/day in adwords, to like $400/day in adwords! I told them thats crazy and give us time to optimize, but they dont really care they just want the calls and sales blah blah... You know the story. So now they are complaining to me within 6 weeks of starting from scratch "The ROI is not high enough! When we consider your paycheque and the adwords budget we are only making a few hundred per sale". So lets get back to what they first said..

They said lets do retainer/budget until we get rolling then we switch to performance model. Now I think since they see sales coming in and they calculate it themselves... a sale a day means instead of paying me 750 a week, they pay me like 800 a day (if 1 sale a day...) and thats a LOT more money than 750 a week...


SOOOO I think they are going to want to just keep it at 750 a week which I AM NOT HAPPY with, cause its a ton of work and I cant really even do everything I want within this budget because its so tight I can't outsource and still pay my rent/bills etc...

So I'm looking for some fresh tactics to try...

They also told me last week after I told them about this company that does a lot of good review/local stuff for them for $1000 a year that "We agree to do it, but we want the $1000 a year to come from your paycheque. You divide the $1000 up into all your paycheques.."

Their reasoning is that they are already paying me $3000 a month which should cover everything since its soo much money and after researching it they see an indian company will do everything (or they say so..) for $900 a month.

I think that is ridiculous.

They want me to pay from my paycheque for their company SEO/Local stuff?? Or else they wont do it, and will complain to me the ROI is not high enough??


So from my personal side... I have a family and need stability and this company is a medium sized company that until now has relied 100% on their sales coming from telemarketing appointment setting. They said they spend over $25k a month on telemarketing, but it brings them profit!!!!! They are a decade behind the times, and it was sheer luck (and Gd) that I was able to even close with them.... Now they are happy and like a typical salesman, want MORE AND MORE AND MORE..

I want more too...

But they keep saying "750 a month is huge, we expect faster and better results!"

Its annoying overall -- but I need stability and I do not want to risk losing this client, but I'm not too happy with the current arrangement because I feel as time goes by they will say to themselves "why pay him more, just string him along at 750 and let our company bank account grow"...

Also another problem is that they have 1 partner who is 30 and very smart. He is pretty intelligent, and catches things fast. Also he is a sales master (telemarketing and commission sales). Its how he has his 5 series BMW after all...But he knows nothing about internet marketing.

So he is learning a lot from me, and catching a lot of learning from Adwords. I do not think he will try to cut me out as he wants to join me selling marketing services to other companies, but I do not like it that within a month he thinks he has the knowledge its taken me years to build on...

He calls me at least once a week to comment on something he thinks we did wrong in the adwords campaign, only to have me tell him stop bugging me with your lack of understanding of adwrords thinking we are doing a bad job!

So he thinks setting up adwords is easy, and the whole trick is having a high converting landing page...

Its partially true but not true.

For a company of his size, I need to penetrate the local market in all areas, not just the high competition high cost of adwords...

However like mentioned before, he/they think I should fork out additional costs since I'm already getting 750...

However I am nervous if I try to bring up moving to the performance model now, maybe they will try to pull a salesman tactic on me...

So this is a pretty advanced scenario and I'm hoping for some razor sharp wit from at least a couple of you...
:-D
Thanks!

p.s. it feels great to really kill it for a company doesn't it?!?!?!

p.s. 2 I need some awesome PPC geared landing page template I can make 1000 variations for that will get good amounts of phone calls if anyone knows other ones to try... I am trying out unbounce right now, and can produce nice pages fast, but its too much money and not being hosted on my server...
#offline marketing #business #forward #ideas #making #medium #move #sales #sized #weeks
  • Raise your price, or find a client to replace them before you fire them. Sounds like an awful client to me, but you like the money.

    Your options are:
    1.) Raise your price.
    2.) Continue working for the same amount and deal with it.
    3.) Start finding another company to replace them, and fire the client.

    If 5 clicks gets you a phone call, then your page is converting at 20%... you're not likely to get higher than that for quite some time. If they think 20% is a problem... then they have unrealistic expectations. Most websites even with extensive testing, struggle to get around 5%.
    • [ 2 ] Thanks
    • [2] replies
    • yes I know your 100% correct about that conversion rate thing.
      Lets look at todays numbers for an easy example:

      27 clicks so far (5200 impressions)
      4 phone calls and 1 form

      The best day was last week. We had 117 clicks (but cost like $425) and a total of 16 calls a couple forms! ! ! ! !

      Now some of those calls are useless...

      Also this is not including active webchats with one of those livechat apps...

      In my opinion this is pretty damn good!

      In june (the month I started) a total of about 70 calls...

      July so far about 50...

      Not bad I think... However they are not being clear with me how many of them they sold.... I am scared to push... ahhh

      but clearly im kicking ass
    • First off, no offense to you brother, but neither I, nor the business owner care about your personal side and what your personal situation looks like. This is business right, treat it like one. It's not their responsibility to support you and your family. Provide enough value for them to pay you well that's how the business works.


      Second, your numbers are kind of screwy. Why do you think they will pay you their entire profit per sale. You say numerous times in your post you want to get paid $800 per sale. Yet the client only makes $800 per sale AND they are paying $400/day in adwords cost? Think through what you're asking. You have to know these things.


      You should aim to get paid somewhere between 15-20% of the incremental profit of the sale.

      If the Gross sale is $3,000
      Minus the Materials $1,600
      Minus Advertising Costs$400
      That means Net Profit is $1,000


      I don't count labor or insurance or rent or things like that, as they are covering that anyway. Sometimes we count labor in that number if they need another crew.


      Now you want to make between 15-20% of that. So that number is going to be between $150-200. NOT $800.


      If you're making $150 per sale and closing one per day you're probably at $800/week. Around where you're at now.


      I've had these types of clients, my gut is, it's not going to end well. If they have access to the adwords account, and it's in their name they will walk pretty soon. You've given up the farm my man. Maybe they won't leave, but my gut is they will be leaving soon. Only because I've had clients like these. Only when I had very solid contracts in place, and I was in control, and they only saw what I let them see was I able to maintain control of the relationship. Once you have it setup and optimized and they are running it under their own account what incentive do they have to keep you around.


      But my other gut reaction is you're thinking short term not big picture. Maybe this is a pain in the ass client but if you're getting them a sale a day, then you're probably bringing in $100k a month in gross revenue for them. You can take what you learn with them, turn it into a system and dominate that vertical. That's what I would do. Don't get greedy though, there's still plenty of money to be made. You're probably not far off the mark. Even with $25k a week in sales, they are probably only netting $5k a week off of those sales. Somewhere between $750-1k a week seems about right to me.

      Don't think how can I get this guy to pay me $5k a month. Think how can I get 20 more of these companies to each pay me $3k a month. That's how you make real money in this biz.

      Good luck, and good job.
      • [ 4 ] Thanks
      • [1] reply
  • Curious how this one turned out for you?
  • Wow...I am curious too cause I just checked the date

    dealing with air conditioning (no heat here LOL)....companies and other sevice companies , home remodel, fumigation etc can be very hard to track.

    One problem is tire kickers who kick back 3 months later...."oh we are going to wait till after our daughter's wedding....till after the new baby is 6 months...till we come back from vacations"....and so forth and so forth.

    When you are dealing with consumers they may not just jump at first. You have t watch the calls like a freaking hawk....
    one frustrating thing is - people call in on a cell phone with a different name....people call from their office (not their own biz, the reception desk, their desk phone)...people call for their mother or mother in law....where I live people call in and ask (in english) for the spanish sales guy /tech to contact them...so that their mother, sister, etc can understand...now...they have different last names....try tracking that LOL (been there...done that)
    • [1] reply
  • hahaha

    Well I live in the deep south so I understand the heat. And all those calls... I had a party rental website (space jumps, inflatable slides) ranking and sending a ridiculous amount of calls to the client. He couldn't handle them all - told him to hire a sales person but no... anyway... a small percentage were coming from the ... err... shady side of town. He said there were literally bullet shell casings on the ground and guys walking by trying to intimidate them. So sometimes you gotta figure out a way to "discourage" callers... if not prevent your site from showing up on their searches. Easy with Adwords & FB... local SEO takes more creativity.
  • hey guys!
    I just noticed this thread brought back from the dead!

    Well what happened was they started to get tons of leads, but they didn't have any infrustructure for handling them and they tried to switch my pay to only per-sale, but with over 40 leads in the pipe they didn't close one so I put it on pause, then one of the partners tried to pick up the pieces on his own...

    Several months ago I reconnected with an old friend and surprise he and I combined and are now doing amazing IM stuff, got a bunch of clients, delivering good results its great. SOOOO much better to not have to work for cheap ass service companies... Its like the lowest rung of Internet Marketing I think...
    • [1] reply
    • Thanks for the update.I have said this before bout the idea of "generate leads" for local biz....not as easy as they make it seem...

      because you have to factor in the sales skills of their salespeople....the ability of their office staff to handle customer service....and even their ability to "do" the jobs you send them in the form of leads.

      The scenario you described seemed so full of issues, glad to see you came out of it ok
      • [1] reply
  • Sorry to say but they have you by the b-lls! They are controlling you and see your weakness and needs. They have to see that they need you more then you need them! Take control of yourself and your services if they don't respect you, their money is crap! You should just get rid of them.

    Tell them to hire the people in India that You-they- mentioned could do it for $900' If they are spending $25k a month on telemarketing they must be making a killing! Unless the closers suck!

    With your Google Adwords you are supplying the leads and the telemarketing guys/gals close!It looks like you are their employee and not a independent worker?

    And yes they are stringing you along. And as You Put it
    Who cares about this do your thing! But this guy will eventually think that he can do it on his own and say good bye to you! Sorry that's, life. Find better clients :-)

Next Topics on Trending Feed