1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

[QUESTIONS] Car Delearship Local Affiliate Programme - Adwords Profits

Discussion in 'Adwords' started by gulp86, Aug 6, 2009.

  1. gulp86

    gulp86 Junior Member

    Joined:
    Mar 16, 2009
    Messages:
    171
    Likes Received:
    133
    Disclaimer 1:
    Hi there, this thread is here on 'Adwords' section and not in Affiliates section because its mainly about Adwords itself.

    Disclaimer 2
    :
    I would like to get feedback from EXPERTS on Adowords and this topic, but if u have any good idea and u would like to share it here, fell free to do it.
    But please DONT add any BS post in here, so we can keep the good quality.

    Disclaimer 3:
    my english is not very good, i will do my best.

    Scenario:
    I was thinking about what can i promote on Adwords, and ive decided to offer an affiliate scheme to a local car delearship.
    So, i picked one, and i started disecting the car models he is offering right now.

    Ive discovered that there is some significant demand on the 'pickups' models he is selling at the moment in my country (using Google KW Tool), then ive checked where that demand is coming from using Google Insights for search, ive discovered that 95% is coming from my zone, so all good up to here.

    DATA:
    Heres the exact DATA ive collected after doing some in-depth kw research on those models of pickups.
    BTW, there are 3 models of those pickups that he is selling, so the kw research is based exactly on those ones.

    Ive collected 71 kw's, and then i made 2 groups:
    1) Group 1: 41 kw's all those kws are EXTREMELY TARGETED.
    Search Count under EXACT MATCH (each number corresponds to a kw and is the avg searches monthly number under exact match):
    1900,1300,1000,880,880,720,480,480,390,390,320,260,210,170,140,110,
    91,91,91,73,73,73,73,73,73,58,58,46,46,36,28,28,28,22,16,16,16,16,12,12,12
    Very Good OCI for all.


    2) Group 2: 30 kw's. All of them are more generic on this micro niche (the pickups) They are generic, because people looking for this kw's dont mention exactly the specific model they are looking for (as they do in the frist group) and they can be searching for used cars for example.
    Good OCI for all

    So, then i made a NEGATIVE KW GROUP to append to both groups, but mainly to be used under the second group.

    NEGATIVE KW Group: 258 kw's, this will help me to really target my audience. Mainly all are in exact match.

    (keep reading we are closed to the point where i need ur feedback)

    SOOO...
    Then i made 11 groups under the Group 1, so i could start tihnking in term of 'themes' for my adgroups. Ive ordered the 41 kws under those sub groups
    Ive decided that i will make 3 landing pages, one for ONE model, another for the OTHER model, and the other one for the TWO models.
    Why? So i can target more specifically each kw and drive the traffic exactly to what they want to see
    Example: if a person is looking for the specific model A, he will see that model and nothing else and a form to submit his phone, email for the 'incentive' or special offer
    If a person looks for a generic term under those pickups, he will see the two models inside.

    OK.
    Ive decided to go after this and ONLY use the Group 1, because its much more targeted, if i get no impressions or clicks then i will start thinking about adding kws form the Group 2.

    Questions:
    1) From the DATA u are SEEING, do u think it would be a better decition to charge a comission (%) on every sale? OR to charge per prospect? (phone call, email lead)?
    My conclusion was: i will charge a % per actual SALE at the first month and see how is coming along. and ive decided this becuase i THINK i will make more money with a % on a sale than selling the individual prospects
    What do u think?.

    2) In the case i charge a % per sale, here comes my doubt...HOW would i know for sure they are making the sale from a prospect i bring into the table? on other words: how can i TRACK that sale? (I think he can always cheat on me).

    3) General question: seeing the DATA...is this an opportunity?do u think I will bring sales?

    The landing pages will be extremely simple: Pic of the model, specs, and a form to the rigt to leave the email, phone, name, in order to OBTAIN the incentive, that would be a discount or something like that (have to talk with the owner)

    BIG THREAD, thanks for reading, now tell me im wrong and why?!!
     
    • Thanks Thanks x 1
    Last edited: Aug 6, 2009
  2. da buck

    da buck Regular Member

    Joined:
    Feb 24, 2008
    Messages:
    317
    Likes Received:
    116
    Location:
    Ohio
    Unless you get a very honest dealer, what's your plan to track if a sale is made. I work at a dealership and it's really difficult to track where traffic comes from even when you outright ask someone. Most people won't realize that they clicked on a google ad to get to the website. If you are planning on using adwords, I would set up a unique toll free number and email address for customers to use for contact so you know exactly where the traffic is coming from. You can then collect their info and match it to sales. Hope that helps.
    Posted via Mobile Device
     
    • Thanks Thanks x 1
  3. gulp86

    gulp86 Junior Member

    Joined:
    Mar 16, 2009
    Messages:
    171
    Likes Received:
    133

    Yes, that is exactly what im going to do, and it would work IF i would do the prospects way...that is to say: if i sell the prospects (email and phone leads) BUT

    What im trying to do here is charge a % on the sale, so in that case my understanding is telling me: the only way to track sales is to CALL each and every lead i get after a week or so and ask them if they bought the pickup or not

    Thats the problem i have to solve,
    is it clear?, if not pelase le tme know.
    AND, please let me know ur opinions, if u tihnk according to the data u are seegin, if this is or not a good chance, aka: am i going to drive clicks and leads with those numbers?

    Thanks again
     
  4. cliffdropper

    cliffdropper Registered Member Premium Member

    Joined:
    Feb 4, 2009
    Messages:
    77
    Likes Received:
    600
    When working with a client the risk shouldn't fall in your hands. Everyday they choose to pay for services that will hopefully get them more leads. They work with you because they believe that your service will help them get more business. If you take all the risk, I think you might be disappointed and the money you invest in their adwords campaign could have been used to get you a lead of someone who would work with you for a fee. What I am saying is that you can't rely on a client to tell you where their business came from.

    If someone knows of a good way to track sales I would love to hear it.
     
    • Thanks Thanks x 1
  5. gulp86

    gulp86 Junior Member

    Joined:
    Mar 16, 2009
    Messages:
    171
    Likes Received:
    133
    Thanks Cliff, all people seems to agree in one point:
    I should start selling leads, at the beggining...and then and if im producing sales for him, then mayne i should sit down and talk with him, because maybe it would be much more money for me to take a chunk on a sale rather than selling 10usd leads.

    I understand that u Cliff are a more 'time for money' man, meaning that u prefer a static fee for the services u are providing, for example PPC Management.
    And i want that too, but in this case, this is different, im trying to experiment with something different.

    I know that this can be very profitable for me, in the case i produce sales for him, and im ready to take the 'risk', i mean, go for the 'lead generation' road instead of the normal PPC Management aka setup upfront fee + monthly fee, i just want to see what happens.

    Now, let me ask u and all others a spceific question.

    One thing is clear for me at this point: i should START selling the leads...now: my understanding is telling me that i need t least 200 for the testing part, and that would be from 7 to 10 days, spending 20 a day. (plus i need 10usd for a new domain to setup the landing pages).

    Question is: should i ask upfront for the money im gonna burn on Adwords? should i ask for those 200?

    Thanks to all, and please if u are reading this post and u didnt make a comment, just DO it.
     
  6. cliffdropper

    cliffdropper Registered Member Premium Member

    Joined:
    Feb 4, 2009
    Messages:
    77
    Likes Received:
    600
    I would try to get the client to pay upfront costs. And your right I am very much a time for money man but I love your idea of getting a %! If there was an easy way to do it.

    The problem I see is how to find out who will buy without hindering the sales cycle of your lead.

    Maybe, set up a page with the picture of the truck on your site and then a form for those who want to test drive the car under the picture. If they are interested in a test drive they fill out the form asking for name, email, phone and address. Then after a day or two day, send a auto responder asking how the test drive went and if they liked there experience at the dealership. Offer a 30% discount in the service area at the dealership as a incentive to fill out the experience form from the auto responder. Add a couple of radio buttons that ask if they purchased the truck, if they are still thinking of purchasing or they purchased from somewhere else. But reiterate that the discount will apply even if they bought from somewhere else.

    You got my mind spinning with how to track sales...

    I would be interested in hearing others answer your questions.
     
    • Thanks Thanks x 1
  7. bobski

    bobski Registered Member

    Joined:
    Jun 7, 2009
    Messages:
    54
    Likes Received:
    22
    One way to approach it might be to approach a few dealerships in the area (other than the one you're targetting) and tell them you have a website that delivers qualified leads. Then ask them what they would pay per lead (they will know their lead conversion ratios)

    That way when you go to the dealership you want, you'll already have some figures in mind and will know if he is BSing you. And if it doesn't work with him, you may be able to go back to one of the other dealers.

    So, stick with the leads approach (much easier to track) but negotiate over the price

    HTH - it's an approach my business partner and I are just starting to implement in our target market, so it's an interesting discussion for me too :)

    PS - for the first one, you could have a clause whereby you will both get together again after the first month, assess how it's going, and renegotiate if necessary

    bobski
     
    • Thanks Thanks x 2
    Last edited: Aug 9, 2009
  8. gulp86

    gulp86 Junior Member

    Joined:
    Mar 16, 2009
    Messages:
    171
    Likes Received:
    133
    Up to this point, this is what im going to do:
    Im going to go talk to this bizman, and after explaining and WOWing him with all my marketing awesomeness, im gonna tell him that:
    If he want me as an affiliate, he needs to:
    1) pay me upfront exactly 200 that will cover teh 'testing section' for the ppc campaign, this ppc campaign wil be focused solely on those 3 pickups models (beeing specific they are all Mitsubishi L200 models)
    and
    2) We need a video camera to record a couple videos, im gonna explain him how the sales funnel will work on the landing pages, so he could see trhe value of having at least 2 videos per landing page.
    One as the welcome mesagge and explaining the 'incentives' and why they MUST leave the email, phone name in the optin box, and another long video that will be inserted in the thankyou page where a salesman will explain the characteristics of the specific model of pickup the visitor was looking for (in a 'reality show' mode literally pointing to the 4x4 and talking). So if he cant provide a flip camera (i dont have one) he is going to hire some guy to record those easy videos and of course paying for that, and he WILL do it because he will uinderstand the value and how it will affects directly the conversions.

    AND im going to charge him per lead during the testing section (trying to draw a figure per phone and email lead with him) AND im going to tell him taht we are going to have a SECOND meeting after the testing section which will be in 15-20 days after the ppc launch, in which we are gonna talk about how we are gonna work from that point.
    Im not gonna mention the %chunk at that point...IF the campaign is working (i expect to) im gonna tell him that i need a XX % if he still want me in his biz.

    BTW, what do u guys think about the actual DATA, are u seeing a nice demand and opportunity or not (seeing the numbers)?


    PS: My idea of tracking sales is: call each lead after one week and ask them the question: Did u buy the 4x4?, no matter if they say yes or no 'Ok, we just wanted to know if u need something, u can count on us just call us wheber u want' or any BS like that.
     
    Last edited: Aug 9, 2009
  9. gulp86

    gulp86 Junior Member

    Joined:
    Mar 16, 2009
    Messages:
    171
    Likes Received:
    133
    UPDATE:
    The main reason why im so determined to go for the %chunk is because the traffic isnt gonna be too high, there is a 95% chance that im gonna make much more charging a % rather tan selling leads here.
     
  10. cliffdropper

    cliffdropper Registered Member Premium Member

    Joined:
    Feb 4, 2009
    Messages:
    77
    Likes Received:
    600
    dig it. let us know how it works. No matter what if you get the man to work with you then you are starting a business relationship. that is the most important thing. Good luck!!!
     
    • Thanks Thanks x 1
  11. shade

    shade Junior Member

    Joined:
    Jan 1, 2009
    Messages:
    137
    Likes Received:
    179
    Occupation:
    Job? Whats a job?
    Location:
    America
    Home Page:
    I'll keep an eye on the thread. Let us know if it works.
     
  12. gulp86

    gulp86 Junior Member

    Joined:
    Mar 16, 2009
    Messages:
    171
    Likes Received:
    133
    UPDATE: i will have the first meeting tomorrow.
    I will let u all know the results.
     
  13. bobski

    bobski Registered Member

    Joined:
    Jun 7, 2009
    Messages:
    54
    Likes Received:
    22
    Yes, please keep us updated... and good luck! :)
     
  14. gulp86

    gulp86 Junior Member

    Joined:
    Mar 16, 2009
    Messages:
    171
    Likes Received:
    133
    Alright.
    I had the meeting today.
    Mission acomplished
    I leave the place with the money that i needed in my pocket, that money for my Adwords expenses for the 'testing section'.
    The owner was very excited about, and the next step is recording the little videos for my landing pages.
    He will send me an email as soon as he get a cam, and we will do it from there, then i will start the campaign and exactly 15 days after we will see the results of the test and from that point we will Set a per lead price.
    Also he will do the maths for the per lead price, beucase he didnt know exactly how much money would it be a phone call for him. However i pushed him to say a number, and he ended up saying soemthing like 27usd (the equivalence in USD), so whatever that definitve number would be it cant be less since he already said one :D
    i Could say a lot fo details, but lets keep it short and sweet.
    So, up to this point, everything is good.
     
    • Thanks Thanks x 1
    Last edited: Aug 13, 2009
  15. cliffdropper

    cliffdropper Registered Member Premium Member

    Joined:
    Feb 4, 2009
    Messages:
    77
    Likes Received:
    600
    Congrats! Everything you did to prepare paid off. Let us know how things progress from here. When I will be most interested is when you start pulling in a profit.

    Remember that once he sees success, hit him up with another opportunity for you to grow your relationship and your profit. If he doesn't see success, stay in his face and come up with other ideas that could help the success of the project. The more times he is writing you a check the stronger your relationship will grow. Even if you run into a slow patch he will consider you a great resource because you understand what he wants and what his needs are.

    Loving your thread.
     
    • Thanks Thanks x 1
  16. bluerickshaw

    bluerickshaw Junior Member

    Joined:
    Sep 23, 2008
    Messages:
    139
    Likes Received:
    40
    Also, could you get the dealer to use your affiliate ID for the customer credit check, insurance quotes? etc..You would prob need to speak with your AM since they would be coming from same IP. Either that or send the lead links to your credit check, auto insurance offers.
     
  17. gulp86

    gulp86 Junior Member

    Joined:
    Mar 16, 2009
    Messages:
    171
    Likes Received:
    133
    Im from Argentina, i hoe this answers ur post.
    Thanks anyways.
     
  18. 7878

    7878 Executive VIP Premium Member

    Joined:
    Jun 14, 2009
    Messages:
    1,382
    Likes Received:
    7,864
    That won't happen. I pay a flat fee per month and run as many reports as I want (usually over 500 a month). No dealer will make their customers run their own credit. ;)
     
  19. 7878

    7878 Executive VIP Premium Member

    Joined:
    Jun 14, 2009
    Messages:
    1,382
    Likes Received:
    7,864
    I'm actually surprised you got this to work at all, so kudos to you. :D

    Any US marketers thinking of taking a swing at car dealers, good luck. You may find it difficult to compete with lead gen titans like Cars.com, Vehix and Autotrader.
     
    • Thanks Thanks x 1
  20. cliffdropper

    cliffdropper Registered Member Premium Member

    Joined:
    Feb 4, 2009
    Messages:
    77
    Likes Received:
    600
    SPB7878- You bring up a good point and it is a big reason I stay away from dealerships.

    But you may also have created another opportunity for gulp86. What I mean is that there is always a way to make more money in this biz.

    If Cars.com, Vehix and Autotrader are the titans for lead gen then maybe present a package that includes them? Maybe charge for your expertise at creating compelling ads on those sites? Maybe charge for split testing ads on those sites? I am not familiar with them, I am just thinking out loud.