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Huge Potential Client. I need BHW help!

Discussion in 'Business & Tax Advice' started by ConversionKing, Sep 4, 2012.

  1. ConversionKing

    ConversionKing Newbie

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    Occupation:
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    I own a conversion optimization company and I just got an offer by a potential client to handle ppc optimization. They currently spend around 100k for the PPC but they have budgeted millions in the past. They have a ppc management company that handles their PPC. They need me to handle the optimization of these campaigns by doing a/b and or Multivariate testing on their landing pages and experiments on the campaigns themselves, all to increase conversion rates and ROI.


    What I need help with is how to price this service. I am thinking I should ask for a percentage of profits made after increasing conversions rates. Do any of you guys have any experience on this type of pricing model? Should I charge a percentage on the profits made/saved if so how much? Should this roll over every month? Contract? Any advice would be epic.
     
  2. emaloy97

    emaloy97 Junior Member

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    I personally would ask for a monthly fee but on a monthly basis. I never work with contracts cause it can get dirty.
     
  3. ConversionKing

    ConversionKing Newbie

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    If the company increases its budget, the profits could be huge.
     
  4. masterjani

    masterjani Jr. VIP Jr. VIP

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    Always go with twice a month comission according to leads if you are hundred percent confident otherwise go for a monthly fee
     
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  5. Lazlo1967

    Lazlo1967 Junior Member

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    You might want to think about a fixed fee plus profit share (it's a win/win for you and lowers the client's risk). The key is to really understand the client's profit margins, business, etc. Also, you should never base compensation on profits only revenue. Profits can be easily manipulated downward!

    Let's say you would normally charge 10K. You can offer to have the client pay that or if you think their revenue will really increase you can say pay me only 2K to cover my expenses and give me 10% (or whatever percent makes sense) of your increased revenue for the next year (or whatever time makes sense). A smart client will almost certainly want to limit the amount of time they pay out so be sure to think about this as a negotiated point.
     
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  6. browsing_hosts

    browsing_hosts Regular Member

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    Don't go overboard and get greedy just do monthly fixed fee and then if targets are met ask for bonus payments monthly like start with say $2k per month if conversions increase by 10% > then $3k per month it depends on the advertisers ROI there has to be enough room for them to be getting value. If you start asking too much they will see its not worth the ROI because this guy is going be charging us this stupid amount just to get there.
     
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  7. ConversionKing

    ConversionKing Newbie

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    Great advice. Rep given to each! I'd ask if anyone has a blank contract I could use but I think that's asking for too much.