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How do you guys do your budget proposals to potential clients.

by chi124
11 replies
  • PPC/SEM
    • |
Hey all how do you guys do your budget proposals to your potential clients. I dont want to do too much research if they have not decided yet.

Is there a way to scale this up?

Thanks
#budget #clients #guys #potential #proposals
  • Profile picture of the author jjones111
    I guess it depends a lot on the niche you are working with, however the idea is to start out small and test until you have enough data on the market and then see what works. A good start is usually given by the default 5$/day for a week or two and then from there you either raise the budget or lower it (or stop entirely) if the conversions are small or non-existent.
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    • Profile picture of the author chi124
      Thanks for the quick response.

      Would I also take into account Geo targeting and # of keywords? $5 a day seems pretty low for a campaign if they want to target multistates.

      Let me know your thoughts

      Thanks
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      • Profile picture of the author james319
        You won't really get anywhere for 5.00 a day. You want to make an impact for your client within the first month. The sooner you can have their phone ringing or making them sales the sooner they will trust what you are doing and become a long-term client. Be honest with your client - tell them if they want to see results they have to spend. Spend half assed and get half assed results.


        Research their main keywords and bring in at least 200 clicks for them in the first month. After they see results they will not mind spending more money.


        A lot also depends on their profit per sale etc.. There is not really a one word answer for you.
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        • Profile picture of the author chi124
          Thanks for the insights guys.

          Is there a widely used model that you guys go by.
          Ex.

          what data points are needed to get an accurate budget.

          If no data points what is the general rule of thumb in terms of pitching a budget to them that is scalable.

          Thanks!
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          • Profile picture of the author james319
            Originally Posted by chi124 View Post

            Thanks for the insights guys.

            Is there a widely used model that you guys go by.
            Ex.

            what data points are needed to get an accurate budget.

            If no data points what is the general rule of thumb in terms of pitching a budget to them that is scalable.

            Thanks!


            There is no rule of thumb. Stop overthinking things and just sell your service. But make sure you know 100% what you are doing in setting up their Adword campaigns. Know how to read all the metrics and fine tune as the campaign progresses.


            If you know your service you would know how to sell it.
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            • Profile picture of the author chi124
              Well put James,

              I was just wondering if there was a formula to reaching out to 1000s of potential PPC customers at scale with limited research.

              Thanks for the response.
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  • Profile picture of the author yoangov
    $5 a day? Kidding, right?

    Depends on the business size, product price, goals of the company, and much more.
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  • Profile picture of the author dburk
    Hi chi124,

    At our agency we do budget proposals based upon the advertiser's type of business, and on the advertiser's campaign goals.

    Here are some examples:
    • For Branding and awareness campaigns, it is usually a fixed budget based on the current size of the advertiser's business relative the to the advertiser's current market share. This will allow for periodic negotiated adjustments as the advertiser's business grows.
    • For direct marketing we typically recommend performance based budgeting, where budgets are optimized using ROAS.
    • For direct marketing with difficult to predict ROI, like lead generation, we recommend performance based budgeting using CPA targets to optimize budgets.

    Avoid recommending fixed budgeting for direct sales, like ecommerce and lead generation as those campaigns will not have optimized budgets, and performance will be severely limited in most cases. If the client insists on using a fixed budget, you should research the size of their market and make sure you recommend a budget that is adequately high enough to prevent harm to performance of the campaign (typically much higher than most clients are comfortable with at the beginning), otherwise you have locked yourself into a performance handicapped situation that prevents you from delivering the most profits for your client. In some case this might be suitable, it all depends upon the advertiser's goals.
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    • Profile picture of the author chi124
      Thanks Dburk just the kind of response I was looking for.
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  • Profile picture of the author JayKay Dowdall
    Originally Posted by chi124 View Post

    Hey all how do you guys do your budget proposals to your potential clients. I dont want to do too much research if they have not decided yet.

    Is there a way to scale this up?

    Thanks
    Maybe you should actually do some research since, you know, they are going to be trusting you with a portion (or maybe all) of their marketing budget.

    PPC is not for the lazy man. It's considerably labour intensive and requires good analytical skills. It's more intensive than SEO in my opinion, but I digress...
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  • Profile picture of the author AK86
    Usually it's the company that you work for which determines their PPC budget.
    I charge hourly for all my work, and that spend is not included in the actual PPC budget.

    You can let them know that during the beginning of the initial PPC investment, more of their budget will go to you for Research & Development (keywords, landing pages, etc), and gradually decline. Once R&D is over, there is still work, as split-testing to achieve better results & transfering campaigns to other networks like Bing, and eventually the work for a client becomes minimal (1 hour a day, checking up on things, once everthing is dialed in).

    Just...make sure you know what you're doing. Otherwise you will be wasting your own time, and the other companies time and money, giving bad results. Seen it too many times.
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