Charge a client a percentage of the sales you get them?

 

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My employer wants me to run a local SEO campaign. It's a plumbing business. He ...
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    mqs1000 is offline Regular Member
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    Default Charge a client a percentage of the sales you get them?

    My employer wants me to run a local SEO campaign. It's a plumbing business. He briefly mentioned doing the work for free and then taking a percentage of all sales I get him. I would track sales through emails that come through the website which I will be making over. I'll also add a phone number to the website that forwards the call to their number and lets me track the calls I get them.

    Assuming the tracking is on point, is this a good idea? Or should I just stick with a monthly retainer?




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    Default Re: Charge a client a percentage of the sales you get them?

    I would just charge for the work that you do for him because if he doesn't get a good amount of business or in a worst case scenario no business then you would've have worked essentially for free.

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    Default Re: Charge a client a percentage of the sales you get them?

    Quote Originally Posted by Veyron View Post
    I would just charge for the work that you do for him because if he doesn't get a good amount of business or in a worst case scenario no business then you would've have worked essentially for free.

    Veyron
    if your service won't guarantee sales then why are you essentially offering it ?
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    Default Re: Charge a client a percentage of the sales you get them?

    I've tried this with a cleaning company and they f*cked me. Checks came in for the first 3 months then I guess they figured they could just get away with not paying for the work that was done. I don't recommend partnering like this. What I would do is build a fake plumbing business online. Something general then just selling those leads to the highest bidder much like thumbtack and home advisor previously service magic.

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    Default Re: Charge a client a percentage of the sales you get them?

    If he is trusted guy you can go ahead with this plan. The best thing you can do is don't use his business name on your website. Promote it as general plumbing brick and motor company. You get the control of there email id and phone numbers. If you are not happy with them just look for another plumber and get your business running.
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    Default Re: Charge a client a percentage of the sales you get them?

    What is he is a terrible salesman with prices that are too high? You create all these leads, but he can't get the job.... then what?

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    Default Re: Charge a client a percentage of the sales you get them?

    Get paid, not promised.
    160,000+ SEO Services Starting at $1

    ----> Free Traffic Exchange <----

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    Default Re: Charge a client a percentage of the sales you get them?

    It's an interesting deal. Think about a few factors that could help make up your mind:

    -What would the monthly retainer be?
    -What are your costs? Time/Money (Building the site, filling out profiles, buying themes/code/etc)
    -What's the average client price point, and what percent would you receive? And is it only leads that come in through your mediums, or is it a percent of all leads that come in above his normal amount?
    -Do you have any idea about local search volumes?

    Personally, I'd probably play around with it. It does depend on the competition of where you are, but I'm imagining most plumbers aren't too concerned with SEO.

    I'm also imagining your costs won't be very high.

    -Get him to pay for hosting, and setup a decent looking Wordpress Theme. Get him to buy one if you want, use a free one, or toss in the $50.
    -Have full On Page SEO, with schema.org info, kml file, and unique and quality content. ($20 or an hour or two of your time)
    -Optimize his Google+ Local Page. Tons of tutorials on this.
    -Head to GetListed.org and claim/fill out his profiles. Same info, all that.
    -Look at the competition, and see where Google is pulling reviews from on their pages.
    -Get some reviews from his clients and get them posted by either you or your friends. Use real reviews of course.


    Again, depending on your market; that should be all you need. Once it's setup and you're ranking, you shouldn't need to invest anymore.

    Later on, and depending on the margins, why not toss some Adwords at it? See if you can make even more money.



    It seems like a decent opportunity, and at most you'll be risking $100 and a few hours. Get the agreement in writing as well. Make sure you spell out everything, including percentages, terms, and the length of the agreement. You can probably find a decent contract online for a Profit Sharing Agreement (Google that term).

    If you're confident you can get him ranked, and get him the clients; why not make more than a simple monthly retainer.

    Hope that helps. Weigh out both options and figure out what makes the most sense for you. ~englandrm

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    Default Re: Charge a client a percentage of the sales you get them?

    I would only do it if you control the domain you are using. Then if he decides not to pay, isn't a good plumber, etc. You can stop working with him and offer the service to other local plumbers.

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    Default Re: Charge a client a percentage of the sales you get them?

    I actually was in this EXACT same situation. RUN!! DON'T DO IT!

    Here is my thread: http://www.blackhatworld.com/blackha...type-work.html

    This is a quote from a very well thought out reply I received in my thread,
    Quote Originally Posted by artizhay View Post
    That's an interesting scenario and after 30 seconds of thought, all the solutions I have basically come down to the honesty of your client.
    What happened for me...

    I thought my boss was honest, that was short lived once money was actually involved as I brought in a few clients from online.

    I did this, I setup a general email account i.e support@url.com and had that as the main contact email on the site (only email on the site) and it would forward to myself and my boss that way I saw all the inquires.

    Long story short I only was paid for one client after doing some quick talking that made my boss slip up and tell me she booked a client that I brought in and it took a couple months to get the money. I finally got the money after I handed in my two week notice.

    Conclusion, it took me quitting to get my money.

    Upside, I only had the job because I didn't feel comfortable living off my business but after quitting I was able to increase revenue in my own business and have worked for myself ever since.

    They didn't fully screw me over though, before beginning my work on the site (building it and off-page) I transferred the site to my server (with their permission) and so now I get paid by them for hosting. They tried to actually skip paying me while they scrambled to find a new host after their first year ended and after two weeks with no payment I put up a suspended page, not kidding, 10 minutes later I had my payment and in full.

    To this day they still pay me for hosting, lesson learned though.
    Last edited by Markthedude; 06-20-2013 at 03:05 AM.

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    Default Re: Charge a client a percentage of the sales you get them?

    Quote Originally Posted by englandrm View Post
    It seems like a decent opportunity, and at most you'll be risking $100 and a few hours.
    I'm sorry but this isn't exactly the perspective to have.

    They screw you and you see a loss of a few hours, no.

    They screw you AFTER you have them ranking and banking. Don't just place a value on your time, you have to place a value on your service and the fact that even after you are gone they will still be making money off the service you provided.

    For example they now have $50,000 more in sales each month even though it only took you a few hours. Guess what, it didn't take you only a few hours to learn what you know, not everyone understands SEO. Let's say it's taken you a solid 3 months of studying the industry to quickly do things in a few hours. Do you feel the risk of being completely screwed out of anything while their profits will increase for whoever knows how long they rank is fair simply because it only took you a few hours?

    That's like someone telling Mark Cuban to pitch a product to the NBA because for him there is no risk in doing the pitch even though he risks not getting any money from pitching the product.

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    Default Re: Charge a client a percentage of the sales you get them?

    Quote Originally Posted by Markthedude View Post
    I actually was in this EXACT same situation. RUN!! DON'T DO IT!

    Here is my thread: http://www.blackhatworld.com/blackha...type-work.html

    This is a quote from a very well thought out reply I received in my thread,

    What happened for me...

    I thought my boss was honest, that was short lived once money was actually involved as I brought in a few clients from online.

    I did this, I setup a general email account i.e support@url.com and had that as the main contact email on the site (only email on the site) and it would forward to myself and my boss that way I saw all the inquires.

    Long story short I only was paid for one client after doing some quick talking that made my boss slip up and tell me she booked a client that I brought in and it took a couple months to get the money. I finally got the money after I handed in my two week notice.

    Conclusion, it took me quitting to get my money.

    Upside, I only had the job because I didn't feel comfortable living off my business but after quitting I was able to increase revenue in my own business and have worked for myself ever since.

    They didn't fully screw me over though, before beginning my work on the site (building it and off-page) I transferred the site to my server (with their permission) and so now I get paid by them for hosting. They tried to actually skip paying me while they scrambled to find a new host after their first year ended and after two weeks with no payment I put up a suspended page, not kidding, 10 minutes later I had my payment and in full.

    To this day they still pay me for hosting, lesson learned though.
    I appreciate your response and I will take caution, but your situation is a little different. You got a local business as a client whereas I actually am an employee of the business I'll be doing this work for. Not only that, but I work the accounting with 1 other guy.

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    Default Re: Charge a client a percentage of the sales you get them?

    if your charging $25 per lead and a percentage of the job/sale it may work, better yet offer a partnership. In reality chasing your money like that sucks unless you have a wire tight system. I've worked in plumbing and work with plumbers marketing online. It's like having a new water heater installed and telling the plumber that your going to only pay for the hot water your going to use in the next ten years. Citysearch has a lead gen system where they charge a 1k or so deposit upfront and all leads and clicks are charged against it. I suppose you could do that.

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    TehEpidemick is offline Banned - see signature
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    Default Re: Charge a client a percentage of the sales you get them?

    as long as you keep the domain and hsoting in your name on a pay per job, basically immediate, i dont see a problem. if he doesnt pay either force his hand by deranking him or bump him for a different partner.
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    Default Re: Charge a client a percentage of the sales you get them?

    Quote Originally Posted by mqs1000 View Post
    I appreciate your response and I will take caution, but your situation is a little different. You got a local business as a client whereas I actually am an employee of the business I'll be doing this work for. Not only that, but I work the accounting with 1 other guy.
    I too worked for the business, the topic of the website was brought up one day and that's how I ended up offering the service to my boss at the time. I was a normal laborer for them, I didn't get them as a client.

    I know my actual thread sounds otherwise but when I was asking my original question I didn't know how to phrase it without it being confusing so I just said that I gained a client.

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    Thumbs up Re: Charge a client a percentage of the sales you get them?

    Local business will always use the phone and this is a organic service business not a web based.. Total BS to trust the guy because there is no way to measure ... UNLESS... you put your own phone number on the website and take all calls Then you will know for sure. Tell him he must pay the full design cost to remove your phone number from the site.

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    Default Re: Charge a client a percentage of the sales you get them?

    Honestly I would take a monthly retainer .. you stand a high % chance of getting screwed or not paid at all .. no-one can afford to work for free when it comes to dealing with businesses.

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    Default Re: Charge a client a percentage of the sales you get them?

    I would also take a monthly fee. And seriously, you could probaly earn more money on affiliate marketing, the same thing just with probability of better payouts and higher conversion rates.

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    Default Re: Charge a client a percentage of the sales you get them?

    Go with the monthly fee or don't do it at all, otherwise you'll be wasting your time and money.

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    Default Re: Charge a client a percentage of the sales you get them?

    You never know with this, I've seen it done in larger corporations with rev sharing on projects based off performance... but not in smaller instances, your more likely to have to fight for what little you might get. You can always setup an escrow with a couple $1000 up front...
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    Default Re: Charge a client a percentage of the sales you get them?

    Quote Originally Posted by TheRealRazzy View Post
    Get paid, not promised.
    This. Unless you plan on having some kind of a contract with them, you should just charge them setup fee + monthly fee. You can't undo all the links you built if they decide they no longer need to pay you from their pockets meaning there's a really good chance that you will get screwed over.

    In order to do the way you intended it in a secure way you would need some kind of leverage.




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    Default Re: Charge a client a percentage of the sales you get them?

    Quote Originally Posted by mqs1000 View Post
    My employer wants me to run a local SEO campaign. It's a plumbing business. He briefly mentioned doing the work for free and then taking a percentage of all sales I get him. I would track sales through emails that come through the website which I will be making over. I'll also add a phone number to the website that forwards the call to their number and lets me track the calls I get them.

    Assuming the tracking is on point, is this a good idea? Or should I just stick with a monthly retainer?
    My advice is to not get tied into their sales. You don't control their site so you don't control their conversions. Essentially you now become an affiliate. I have companies that come to me every day asking for a partnership. The reality it is dumb and it puts all the risk on you. Yes there is upside if you do well, but there is still upside for them. Whereas if you suck at SEO you still get paid by them and they have the downside.

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    Default Re: Charge a client a percentage of the sales you get them?

    When people go to a website for a service, they almost never fill out a form... they almost always call (especially for a plumber). Then he can just go and say "Hey, sorry I didn't get any sales, they just called for some info"

    If you WANTED to... charge on a per lead basis, so ever call he pays $x for.

    But dont take a %, its very hard to keep track.

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    Default Re: Charge a client a percentage of the sales you get them?

    this thread is stupid and so are the people saying this is a bad idea, think of how you can manage the leads, the emails dont go to him, they go to you, track the site like it's your child, monitor it daily, seo it and track that, watch the visits increase and a/b test as if it's your own site

    own it, don't rent it (manage the site from the ground up giving owner slim to no access)

    he doesn't pay? you pull the site, easy as that, he WILL come back to you if you don't fuck it up

    you want 10% of any leads drawn, any refferred work from that, anything at all that comes in from your website

    say guy makes 40k a mo in sales now, they go up to 60k, you make 10% on that 20k, that's 2k a mo on auto pilot based off of leads, got it?

    now you're at 2k off of some basic web work and seo, boost up that seo and really push for him, as if it's your company, now he hits 90k, get that 10% of that increase (being 90-40=5), thats 5k a mo in your pocket what a joke

    these are the clients you baby, treat their biz like it's yours, and get them to the top of their game (and yours, being rankings and referrals)

    you'd be stupid not to do it, truly a moron.. you aren't doing the plumbing you arent buying inventory, insuring your employees, handling payments, just doing what you like to do (seo etc) and getting the biggest bang for it

    NOW THAT BEING SAID, this may not be the client to do this with, he might be too small, too unorganized, too lazy (LAZINESS IS WHEN the owner doesn't want new clients because he wants to go home at 5), but take this info and run with it, it's more than referals, it's more than seo, it's truly working with a biz and being there when it grows

    fuck a monthly retainer, when he doubles in sales because of YOUR hardwork and seo investments (dont ask him to pay for x service or x app, pay out of pocket, it's worth it, trust me), take your monthly retainer of 800 a mo but when he doubles in sales think of that %, his money is made with man hours, he doubles his income while you're trapped with your 800 a mo? meanwhile you could take a cut of his referals and offers he gets bc of your epic seo work and lead generating website and make a killing, if you double his client base off of 10% of their expenses wtf could you make, a killing.. say sales dont go up and you tank, why would you want to take his money even though you failed him? he will be much more willing to give you a cut of the increase if you don't blow it


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