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Commission based customers?

Follower ✭ ✭ ✭
# 1
Follower ✭ ✭ ✭

I have a prospect that wants me to manage his Adwords and get commission off the sales. The average order value is very high, does it pay? does anyone have any experience with such a model? what about a base + commission?

2 Expert replyverified_user

Re: Commission based customers?

Top Contributor
# 2
Top Contributor

Hi @brower J commission based management can seem very attractive if the sales values are high, but of course it comes with the risk that you could do a lot of work and get few sales which may be none of your fault.  AdWords doesn't work for everyone, and there are so many factors outside your control that I wouldn't normally advise a commission only payment basis.

 

A base fee plus commission could work, but I'd look for the base fee to pretty much cover my working hours on its own.  My general rule of thumb is never to put myself in a position where I might not be paid for the hours I've put in.

 

Jon

AdWords Top Contributor Google+ Profile | Partner Profile | AdWords Audits

Re: Commission based customers?

Top Contributor
# 3
Top Contributor
As Jon mentions maybe look at a minimum base for labour and keep the commision for optimization and upkeep. I see too many factors in which your campaigns will not succeed in where you are not in full control over, like pricing, landing page, product quality ect....
Cheers!

Re: Commission based customers?

Explorer ✭ ✭ ☆
# 4
Explorer ✭ ✭ ☆
I agree with @Trevor_Stewart, if their website doesn't have good landing pages then it could be a wasted effort. If you do go the base+comission route. Make sure they have conversation tracking properly setup. It would be ideal if you could get some credit for other parts of the conversion funnel instead of only last click attribution.

Re: Commission based customers?

Follower ✭ ✭ ✭
# 5
Follower ✭ ✭ ✭
Thanks all, has anyone had first hand experience with this kind of deal?

Re: Commission based customers?

Top Contributor
# 6
Top Contributor

Well, yes, @brower J of course.  I've had many offers of this sort of thing over the years, but I've refused almost all of them and only accepted those where I had a base fee in place.

 

Jon

AdWords Top Contributor Google+ Profile | Partner Profile | AdWords Audits

Re: Commission based customers?

Visitor ✭ ✭ ✭
# 7
Visitor ✭ ✭ ✭
Hi @brower_J,

We've been asked to propose such models and, for the most part, have stayed away. Why? We don't think our value should be based on the ability of a business to close a sale, but rather the quality of traffic & conversions we could provide. Although... it often does sound lucrative...

Best of luck!

Stefano Apostolakos