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How to make money with PPC ads via PPC agencies

How to make money with PPC ads? Now I’ve read some spots about how and for whom PPC campaigns are supposed to make. No, this is not an addition to an exchange of views 🙂 It just my point of view. I have always wanted to find a perfectly universal model for charging money for PPC. Of course I did not find it, nor can he be there a universal one, because everybody wants something different. Then the question may be whether, in such a case, is there any model that someone is willing to buy in the right way.

So let’s take a look at the most common models that agencies / consultants / anyone use to evaluate campaigns. I will not analyze the quality of the traffic obtained in the different ways, because it is not transparent in advance and in all models it can, but does not have to be high-quality traffic, it simply depends on the advertisement model.



1. FIXED PRICE FOR CLICK

How does it work
The agency will say that the click will cost X USD (or that Y clicks will cost you Z USD). The client says he does accept . The agency then reports the number of clicks, usually telling the client how many ad impressions, CTRs and what keywords the money has been clicked on. On the contrary, it usually does not tell the client the actual price per click paid by the PPC system, so it does not distinguish what is paid to the agency and what the PPC system. The client does not pay for administration or setup, he just buys the clicks.

When you are a client
It may seem like a transparent system. You know exactly what you get and how much it will cost you. The higher the number of clicks, the more you pay for managing the campaign, even though the actual work done does not have to correlate with price. The agency is motivated to push the cost per click as low as possible, but as a client you will not gain anything, you pay a fixed price. There is no pressure on the cost per conversion.

When you’re an agency
You can easily apply this model to clients who do not follow campaign effectiveness, do not have much experience, or have experience with expensive payouts or banners, making it cheap and cool. It is also suitable for small clients, where other models could show that work of agency is more expensive than advertising itself. This is by no means saying that this is a model of a lure, it simply works on the principle of buying rolls, which is simply the closest to many people.

2. PERCENTAGE OF TURNOVER

How does it work
The agency will say that it will want X% of the advertisement fee. The client usually has the ability to see all the data.

When you are a client
You know what part of the money is spent on the clicks and what’s on the agency. You do not know how much you actually spend and how many clicks you get. With the number of clicks, the price increases evenly. The agency is not in any way motivated to try to push the price for a click down (which is worse, on the other hand, the higher the cost of a click is interesting for agency). Surely there is motivation to make the most of the total turnover and therefore the effort to get as many clicks as possible, so the campaigns can be really big and not limited just to few basic keywords. There is no pressure on the cost per conversion.

When you’re an agency
In fact, I can not really imagine what type of client can actually use this system. 🙂 That is not how to make money with PPC ads.



3. PRICE ACCORDING TO WORK TIME

How does it work
The agency will charge the price based on how long it spends by setting up or managing your campaigns. Of course, it is common to agree in advance on how much time the setup will take or how much time the agency spends on the administration.

When you are a client
You know in advance how much it will cost you. But maybe you just do not understand exactly what you get. In this case, it is advisable to agree with the agency some milestones – I do not want to say any guarantees. But if the agency estimates the time it spends on the campaign, it should also make an estimate of what it will bring to you. Specific numbers are always difficult to estimate here, but at least you should get a rough estimate. Surveyed with this model, it is already assumed that you are buying something that will worth it.

When you’re an agency
It will be hard to explain what your client will achieve for his money. He just does not know what you can do in an hour’s work. But a lot of clients need someone to care about the campaign, watch them, be on the phone, handle changes (maybe seasonal), make the reports. For all of this, the hourly rate – or its equivalent in the form of a monthly flat rate – fits perfectly. The monthly fee is not very suitable for clients with little turnover (it’s not nice if the client pays more for the job than for the clicks).

4. PRICE FOR THE ACHIEVEMENT OF THE GOAL

How does it work
The agency will negotiate with the client at a specific target – a decrease of the price per click by X%, an increase in conversions by Y%, the achievement of particular number of clicks per day, whatever. In order to achieve this, he / she will receive a pre-agreed reward – either fixed or a percentage of saved money due to reduced costs.

When you are a client
You know what you want to achieve and what you pay for it. It may happen that the agency does not reach the goal, but you pay significantly less or not at all.

When you’re an agency
You have to believe, everything is well/count and not overestimated. The clients like well attaining the goals.

how to make money with ppc ads

5. PRICE FOR PERFORMANCE

How does it work
The agency charges a commission on turnover or profits or a flat fee for each purchase. The way it works can be that the client pays for clicks and the agency is paid according to them, or agency even pays for tthe clicks, and hence the client is guaranteed to always make money.

When you are a client
You pay for performance if you want an effective campaign – it is a good choice. You will have to subordinate to the agency in many ways, probably even meddle into editing Your site itself to ensure the best conversion rate and therefore a more effective campaign. It should be so, and it is often the case with all three of the latest models, but here is definitely some agency interest.

When you’re an agency
You offer a principle where the client may seem to have nothing to lose. But you do. You must first calculate everything well, otherwise you will be in loss. The model will be appreciated by clients focusing on efficiency and performance, and it can be assumed that they have some more experience not only with PPC but also with other models that did not suit them. That is why they can be skeptical. They can also calculate well what You can achieve and perhaps better than You. For this type of client, it will also be a great loss that You to slowed them down by a poorly executed campaign (even if it does not cost a singe cent), so persuading them does not have to be as simple as it seems at first glance. You have not just to do PPC, You need to be sure that the client’s web is able to convert visits to conversion in a proportion that it will not only make money fort the client, but for You as well.

RECOMMENDATION

I do not have any. Calculate yourself what is the most suitable for You. But be sure to share your ideas with comments.

If this article helped you, please share it. 🙂 It can help other people as well.

Published inAdsenseAdvertisementPPC

15 Comments

  1. Jan Zac Jan Zac

    Hello ,

    I saw your tweets and thought I will check your website. Have to say it looks very good!
    I’m also interested in this topic and have recently started my journey as young entrepreneur.

    I’m also looking for the ways on how to promote my website. I have tried AdSense and Facebok Ads, however it is getting very expensive. Was thinking about starting using analytics. Do you recommend it?
    Can you recommend something what works best for you?

    Would appreciate, if you can have a quick look at my website and give me an advice what I should improve: http://janzac.com/
    (Recently I have added a new page about FutureNet and the way how users can make money on this social networking portal.)

    I wanted to subscribe to your newsletter, but I couldn’t find it. Do you have it?

    Hope to hear from you soon.

    P.S.
    Maybe I will add link to your website on my website and you will add link to my website on your website? It will improve SEO of our websites, right? What do you think?

    Regards
    Jan Zac

    • martin martin

      Hello, Jan

      I am very glad that You like my blog. It is even not officially launched yet, so You are one of my very first visitors. 🙂

      First of all, I would like to praise You for choosing enterpreurship. It is not the way that young people tend to choose. You are my role model.

      I looked over Your blog. I like it, and I immiedatelly added it to my bookmarks. You have very rich content, and I noticed, that You cover a lot of various topics related to internet marketing. Probably the most interesting one for me was Passive Income. That is the way I would like to earn money. 🙂

      As for the marketing, I can’t tell You about promoting this website, because it is not launched yet, but I can tell You about promoting my blog which I launched one year ago- briefnews.eu.

      However I think, that Facebook ads are pretty cheap (You can even achieve 1000 people for as low as 25 cents), I never used any paid advertisement. Only stuff I focused to was to reach some influencers and ask them to promote my blog.

      Influencers were just ordinary people as we are some time ago, and they needed help of other people as well. They know very well how difficult it is to build a massive traffic, and if they see high quality content, they would be happy to promote it. And if not, at least they will write You some valuable tips for improving Your blog.

      Of course, influencers are often busy, and don’t have time to reply to everybody, but I am sure, that at least some of them will find time for You. I tried to contact everybody, who was mentioned in my article thinking that if he is mentioned in the article, he would like to share it. Unfortunately, most of the people never replied me, but for example former Prime Minister of Romania shared my article on Facebook. My blog was for one day 86th most visited website in Romania, which is very funny considering that my blog usually gets only few hundreds of visitors a day.

      That’s just illustration to show You have powerful and helpful can influencers be. I definitely recommend You to contact some of influencers from Your niche. Jed Emerson, Lisa Hall, Adam Spence, Fran Seegull and Narinder Dhami are one of most powerful influencers about investing. You can even contact Robert Kiyosaki himself. Even I doubt he would reply You, You have nothing to loose.

      And as for backlink exchange, I accept it. You have backlink to Your blog on my website even now, cause You published link in the comments, but I will definitely mention Your blog in some of the future articles.

      Have a nice day. 🙂

      Martin

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