 |
|
The cost of our services is contingent on the complexity of the task, and the time necessary to complete it. In the Pay-per-Click (PPC) industry three fee structures are standard: i) percent of spend, ii) revenue share and iii) profit share.
The first of these is an agency model; the client here funds the campaign:
i) Percent of Spend: When working according to this fee structure the client funds the advertising campaign (cost per clicks), paying us a certain percentage of this sum. Though the client has full rights to any and all returns here, having laid out the initial costs he also bears the full risk.
Both ii and iii are affiliate models: on these the PPC specialist funds the advertising campaigns but then also has claim to a share of the returns, either as a percentage of the revenue gained (as in ii), or else as a percentage of the profit (as in iii).
ii) Revenue share: Here the PPC specialist pays the cost per clicks, and then has a claim to a percentage of the revenue that is thereby generated.
iii) Profit share: on this model it is again the PPC specialist who funds the campaign (pays the cost per clicks) but rather than earning a percentage of the revenue, we are here awarded with a percentage of the profit, {as calculated after marketing expenditure (cost per clicks).}
There are, to each of these models, advantages and disadvantages which we discuss with potential clients in our first consultation. The third model, iii, profit share, for instance, is the most conducive to maximizing profit (as it gives us control over more of the constraints) but it also may be the most complicated to implement.
The objective of the campaign, whether it is expected to immediately optimize profits, or whether it can only provide the exposure necessary to this end, is most often the deciding factor.
While i, ii, and iii are standard in the industry, they do not exhaust the options. Alternative fee structures, for, say, Small and Medium Enterprises (SME), or other special cases, can be negotiated.
|
|
|
