Question

Does anyone on here operate on a PAY PER LEAD basis vs charging customers a % of ad spend or fixed fee?  

Answer 1

Yeah. Done it on couple verticals

Answer 2

Yep do fixed fee and PPL

Answer 3

Yep. The only way to go.  

Answer 4

I'd make sure to really trust the party you start a deal with.  

Answer 5

Lots of people do PPL. Just make sure you know what you;re doing and also make sure that you own the phone numbers, web properties, ad account, etc.  

Answer 6

% of ad spend is pay per lead. Same thing.  

Comments

@hemimorphic3441 ummm no. Think. $100k in ad spend with 1 lead, or $100k in ad spend with 10k leads. Your fee on % of as spend would be the same. Which would a client rather have?  

Answer 7

Percentage per lead is performance based when the customer pays for advertising. Charging customer per lead depends how much you spent is an interesting approach, but I doubt someone would like that as they need to know their spent. Another approach is you pay for ads and do revenue share with your customers

Comments

@rolfrolfe Pay per lead, pay per sale, pay per enrollment. Most clients will do these as your goals are aligned. There’s an entire industry built around these models called CPA or affiliate marketing.  

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Whats a good course to lead PPL? i understand the theory but i feel like im missing pieces or how to protect yourself so you dont get screwed over.  

Answer 8

We have a new player over here (bark. com) who seem to be chasing a pay per lead model. They approached one of my clients but I just dont think theyll be able to best my 4 years of $12 a lead

Comments

@sparker what CTA and incentive are you pushing to get leads? Are they qualified and more importantly do they convert?  

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@sparker they are just another enquiry broker. World is flooded with them.  

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@sparker yes I’m uk based and tried bark for my ABBA tribute but the leads all came to nothing - cheapskate types looking for a band for £2. 50 !  

Answer 9

Interesting thread and while I hesitate to hijack it, I think my fork is in the same line of thinking. Pay per lead is, IMHO, the only way to stand on your ability as an ad specialist. I'd happily pay $12 for a qualified lead (ie has completed a form with the detail I require to qualify an opportunity). I'd soon figure out if the leads were rubbish (as leads from a popular enquiry broker were). If the leads were genuine I'd happily pay even more. I spend about $300 a month on Google Ads right now to get maybe 5-6 quality leads and 2-3 jobs from that spend. So even at $20 a lead PPL would be much cheaper. There must be people out there who know how to generate leads online better than I do. But will they back themselves? I offer a money back guarantee for my work . do you?  

Answer 10

Thanks for all your thoughts . I’m uk based & have done my own google ads / websites / seo for 15 years on my tribute bands and also a few clients . just pondering whether to offer PPL to future clients and thinking through the pros and cons Idea would be to pre agree a cost per lead and some kind of contract tying them into something long enough to recoup my basic outlay ? ) then set up website / seo & ads for them at my cost & risk ( targeting sole traders / SMEs) Anyone have any contracts like this & happy to share? Or web links to similar companies? Have lost 100% of my band work due to C19 & need something to do! Many thanks everyone x

Answer 11

Unless I get a say in CRO, copywriting and budgets of marketing (or get a say in who they work with) I wouldn't consider it. Too many variables out of my control that have influence in whether I'm getting paid.  

Answer 12

Same as Edwin. I get paid Performance based only if I have the last say on CRO, copywriting and budget allocation. First 2 months are flat fee and then I turn in a fee, based if on whether we hit the ROAS on Analytics. I am quite hardcore on that since, I calculate ROAS on last click attributions and 1-day click Attribution window on Facebook but that's why my fees are very high.