offline biz PPC charge

14 years ago

People will pay if they believe you give them value. You have to be flexible too. Someone selling an ebook will not likely want to spend $500 for setup and $400 per month. On the other hand, an ecommerce site with hundreds or thousands of products, that would be a good price. Will you be charging enough to cover your costs in that case? I'm guessing not.

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baronig

14 years ago

I am trying to establish a value like this:

my client will get 200clicks/month
30% might call=60
60 phone calls of which 30 might buy and become customers.

real conversion is 15%

what do you think about this approach?is 200 clicks/month and 30% conversion for local biz realistic figures?

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butters

14 years ago

Originally Posted by baronig

I am trying to establish a value like this:

my client will get 200clicks/month
30% might call=60
60 phone calls of which 30 might buy and become customers.

real conversion is 15%

what do you think about this approach?is 200 clicks/month and 30% conversion for local biz realistic figures?

30% conversion from adwords? Thats a dam good ad

normal conversion rate is 1-2%

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oliverwinston 14 years ago

I think you are on the right track with the pricing.

Keep in mind the value of the new customer that the business will be getting.

Many types of business have a very high new customer value and you can justify very high profit margins. Dentists and Attorneys for example know a new customer is worth a large Lifetime Value so you can ask more for your service. A local clothing store may not make as much from their customers so they can't pay as much for your service.

Good Luck with your venture!

BTW- Be sure to put the business phone number in the adwords ad and you will get your customer some bonus results without any adwords click costs :-)
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Lucid

14 years ago

> what do you think about this approach?is 200 clicks/month and 30% conversion for local biz realistic figures?

Depends on the business, how big their market, how many searches in that market. You better be darn sure there's enough searches and that your CTR is super great like 25%. If you guarantee a certain conversion rate, you also better be in control of the landing page and create a super sales message. That's two supers, CTR and conversion, which would be quite a feat.

Will they pay for the clicks or are you?

Personally, I think your averages are a bit high. But you may be good enough to get a 25% CTR, although you go by 200 clicks. This could mean you figure 2,000 impressions, a more reasonable 10% rate, I don't know. The trick is then to make sure you take only clients for which there would be at least 2000 local searches on your keywords. The harder part in my mind is that 30% conversion rate.

Looks like you are from Montreal. Maybe you are doing this for French speakers? Still a tall order in any language.

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baronig

14 years ago

I think i know what I will do.
i will ask him the question.
let's say 200 people clicked on your ad,how many you think will call you?
i am sure their estimate will be much higher.they might say 70
how many you think will buy?they might say 35

i think the trick is let them give those estimates the truth is no one knows for sure at least for couple of months.

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jan roos

14 years ago

Originally Posted by baronig

I think i know what I will do.
i will ask him the question.
let's say 200 people clicked on your ad,how many you think will call you?
i am sure their estimate will be much higher.they might say 70
how many you think will buy?they might say 35

i think the trick is let them give those estimates the truth is no one knows for sure at least for couple of months.

I wouldn't recommend you go that route. Here's why..

If you ask that question which I have with quite a few offline clients they will say at least 60% conversion on PPC or an email blast to their list.

If you then say yes maybe 30% will then you are setting the standards too high and then when you can only bring 5 to 10% conversions (which is great) the client will be dissapointed. I say from the start that the average email list etc conversion rate is 1 - 2% anything above that and we are doing good. Then if you hit 20 or 30% you will look like a rock star.

Cheers

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baronig 14 years ago

1-2% conversion I know in IM that's what we estimate.
then how i am going to justify my monthly fees?
if he gets sale 2 sale out of 100 visitors clicks ?and his sale price average is 50$?

based on this calculation he needs 1000 clicks to convert 10 or 20 client.

1000 clicks x 0.60=600$ adwords expenses
400$ my fees
1000$ monthly expense

he will make either 500$ or 1000$

he will be losing money no?
can someone give more practical example where i can convince my clients to take PPC rout?
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Lucid

14 years ago

I agree with Jan. If you set the bar too high, you might crash and burn. You can't go by what they say and you can't translate offline figures into the online world.

My pricing model is based on the number of products and ad groups. No fixed monthly fees which would be too high for small clients and to low for me to make it worthwhile for large ones. No percentage of spend either although I will consider commission-based fees in exchange for a much lower monthly fee. Those can be lucrative.

I only promise to get a higher CTR and lower CPS than what they are getting now and that my fee will more than make up for the difference. Of course if they are just starting a new PPC campaign, I can't promise anything, there's no control to be judged from. Those clients know they are hiring me for my expertise and trust I will do a better job they could do. I certainly would not guarantee a certain CTR, number of clicks or number of sales (which I can't control although I do offer my advice on improving their landing page).

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baronig

14 years ago

Originally Posted by Lucid

I agree with Jan. If you set the bar too high, you might crash and burn. You can't go by what they say and you can't translate offline figures into the online world.

My pricing model is based on the number of products and ad groups. No fixed monthly fees which would be too high for small clients and to low for me to make it worthwhile for large ones. No percentage of spend either although I will consider commission-based fees in exchange for a much lower monthly fee. Those can be lucrative.

I only promise to get a higher CTR and lower CPS than what they are getting now and that my fee will more than make up for the difference. Of course if they are just starting a new PPC campaign, I can't promise anything, there's no control to be judged from. Those clients know they are hiring me for my expertise and trust I will do a better job they could do. I certainly would not guarantee a certain CTR, number of clicks or number of sales (which I can't control although I do offer my advice on improving their landing page).

Lucid,can you please give more detail how you charge to clients?if no monthly fee do you charge large setup fee,...?

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freudianslip27

14 years ago

Another option would be to use PPC as a way to get a foot in the door. Finding clients by spotting poorly managed PPC campaigns, and taking them on with a reasonable fee.

Then you could provide additional services like setting up an autoresponder to get a higher success rate with the ppc campaign, while charging a monthly fee for that too

Matt

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baronig 14 years ago

Originally Posted by freudianslip27

Finding clients by spotting poorly managed PPC campaigns, and taking them on with a reasonable fee.

Matt how do you spot poorly managed PPC campaign,do you use a tool.
we know the obvious:
header
description
landing page
if keywords are included,..is there another trick to find who is doing very bad campaign?thanks
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- jan roos 14 years ago
  
  You have to figure out what the average life time value of a new client is to a business. If you know that number then you know what the business can afford to pay for a new customer.
  
  For example, If you own a restaurant and you get a new customer via PPC, you get the customer on an autoresponder, you can market to that customer for a long time, that customer might become loyal to your restaurant and spend money there for years to come. Would you be willing to spend 20 or even 30 bucks to aquire that customer?
  
  Some businesses have high life time value of customers and can afford to spend more to get new customers while others don't. It just depends.
  
  Cheers
  
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windaaja

14 years ago

good share, I use PPC thankyou for share

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freudianslip27

14 years ago

Hey Baronig,

Yes, you mentioned great ways to find ppc campaigns that aren't optimized. I wasn't even looking for this kind of stuff initially, I just started noticing it as I was studying my local market. I saw some businesses coming up in searches and thought to myself "Oh no, they don't want to be paying for those clicks, this wouldn't be targeted traffic at all!".

But yes, landing pages are pretty easy. It amazes me that some of these companies spend thousands on tv commercial airtime and they don't even know how to create (or pay someone) basic landing pages. That's where we come in!

Matt

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baronig

14 years ago

Originally Posted by freudianslip27

Hey Baronig,

Yes, you mentioned great ways to find ppc campaigns that aren't optimized. I wasn't even looking for this kind of stuff initially, I just started noticing it as I was studying my local market. I saw some businesses coming up in searches and thought to myself "Oh no, they don't want to be paying for those clicks, this wouldn't be targeted traffic at all!".

But yes, landing pages are pretty easy. It amazes me that some of these companies spend thousands on tv commercial airtime and they don't even know how to create (or pay someone) basic landing pages. That's where we come in!

Matt

Thanks Matt,
i was more focused on cold calling now i see there are other ways to get clients.
one other thing how do you collect your fees,they pay 3 months in advance,paypal subscription?

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offline biz PPC charge

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