Top 10 PPC expert author | PPC & E-commerce Expert 🚀 | Tech Driven Marketing | Growth Hacker | Google Ads Specialist | SEA Specialist | PPC Specialist | Marketing Lead | Performance Marketing | Growth Marketing
Hourly, Fixed, Retainer, Comission, Performance. What's the best pricing model in performance marketing? IMO the worst is hourly and fixed❌ - it has no incentives - you shoot your own leg by beeing smart and automate stuff - only upside: it's easy to calculate % Adspend or Revenue is IMO the best 💹 - scaling often aligns with client success - Smart work is rewarded - Win-Win when scaling - Lower invoicing when off-season (good for clients cash-flow/liquidity) Altough every model has it's pro and cons i think some are just better over a bigger number of accounts and lifetime. #ppc #googleads #sem
Senior Strategic Account Manager at morefire | Marketing-Strategie & Projektmanagement für nachhaltiges, ganzheitliches Online Marketing
3moWhile I agree that hourly & fixed both aren’t ideal (hourly means less ability to plan ahead resources, fixed doesn’t necessarily respond to client requirements during seasonalities), % adspend has also already backfired for me. Sometimes there’s nothing you can do about scaling adspend, if there’s a very fixed yearly budget & your direct contact person is not in a position to decide about that budget. If it’s a small client also, this fixed budget won’t be high, so there’s zero option to increase your own payment, no matter how well you perform. % of revenue also depends on what comes after your ads if you’re an SEA manager for example: how’s the CX with the LP? How well does Sales perform? It’s a game where your payment is extremely dependent on factors that may be out of your hands & requires a clean, well set up and maintained CRM. Would you trust every client to fulfill these requirements without a doubt? I’m not sure I would, not because I don’t trust my clients, but because I know how often CRM maintenance is wildly neglected, especially if your client depends on external dealers that are the actual points of sale. I think you can’t really tell which model is the best in general sometimes it’s this, sometimes the other.