Get Results, Then Pay! – How Pay For Performance Marketing Can Boost Your Business & Lower Risk

Business owners are inundated with calls from SEO companies promising them the world. They want the results but are reticent about taking the plunge because they don’t know if they will see results. Pay For Performance Marketing is designed to alleviate those doubts.

What is Pay For Performance Marketing (PFPM)?

With PFPM you only pay for results (qualified calls, email inquiries). There is no setup fee, fees for ads, or ad management fees.

How does Pay For Performance Marketing work?

1. The business owner and the digital marketer decide how much a lead is worth. Some determining factors that affect the cost per lead include:
   • Cost Per Click (CPC) value for the keywords you plan on targeting in Google.
   • Average Transaction Value(ATV) – For emergency services like plumbing leaks or roofing where you deal with customers just once, you’ll want to consider the ATV.
   • Customer Lifetime Value (CLV) – Businesses such as dentists, salons, chiropractors that see clients multiple times will want to consider the CLV
   • Volume of calls the business is able to handle.
   • Compensation structure:
     • Pay per call / email
     • Pay per conversion
     • Pay per lead + percentage of gross
     • Other variations that make sense to both parties
2. Decide on method of payment
3. The digital marketer utilizes their skills to get you calls and emails. He / she may:
   • Sets up a special phone number that tracks the calls being forwarded to the business.
   • Create a website and probably rank it. The website will typically have the special phone number and a form to collect email, phone number, etc. that will be forwarded to the business and the marketer.
   • Run ads on Google, Facebook, etc in line with the type of business
   • Implement other methods depending on the industry.

What are the Benefits of PFPM?

Some benefits include:

• No Setup Fees for SEO or PPC campaigns. The digital marketer pays for the costs involved.
• No Monthly Fees
• No Fees for Ads
• The digital marketer assumes most of the risk
• No upfront outlay. You only pay for qualified calls and emails
• You’re not locked into a contract. You can turn it off whenever you wish!
• Win-Win for everyone!

What type of businesses lend themselves to PFPM?

In order for a mutually beneficial relationship between business owners and digital marketers any industries that have high CLVs or ATVs to justify return on investment(ROI) would be a good fit for PFPM. So for example if a chiropractor charges $3500 for spinal decompression therapy and assuming the chiropractor can convert 50% of the calls to clients, the chiropractor can expect to pay $200/lead in a competitive city.

Some ideal business categories include:

• Cosmetic surgery
• Dentistry, dental implants, orthodontics
• Landscaping & snow removal
• Roofing
• Plumbing
• Law
• Mortgages
• HVAC
• Home remodeling
• Psychologists, Psychotherapists, Psychiatrists

What can I expect to pay per phone call?

It depends on the competition in that industry and location. Some lawyers will pay $1500 per qualified call relating to a mass action law suit such as asbestos related diseases like mesothelioma. A dentist may pay $200 per call. A plumber $75 per call.

How is this different from a service like Home Advisor?

Services like Home Advisor sell the same lead to multiple contractors. The potential client gets bombarded by multiple contractors who compete to get the same client which promotes price shopping.

In conclusion the Pay For Performance Marketing model saves business owners:

1. Time spent on optimizing their website, creating and testing ads and learning each ad platform
2. Money that would be spent on setup fees, monthly administration fees for SEO, PPC ad campaigns and building and optimizing presence on various social media platforms
3. The risk of paying for SEO and PPC services and it not working out.  With PFPM you only pay as you get results and turn it off if you’re not satisfied.

If you think your business could benefit from Pay For Performance Marketing give us a call at (630) 803-7098.