Why is being co-responsible for the client’s marketing results is so beneficial for mutual growth? What are the two models of compensation and how does it influence client’s and the marketer’s motivation to do their best?
Discover magic tools that make this long journey much easier and less time-consuming in this article by our CEO Pavol Adamčák.
Table of Contents
Planting the “seeds”
When I launched the PPC campaign for my client’s first eshop, I was delighted to see the results. As soon as my work brought sales, I began to address how to take care of the eshop’s performance marketing as a whole. I had a clear idea about the price of the service. It was not expressed in a fixed amount or a flat fee.
Basically, I expected that if I generated a turnover, I could be rewarded with a percentage of the extra profit I brought in.
Co-responsibility for the Results: Magic Wand to Long-term Growth
Marketer’s success depends on the ads results they manage. But ads success depends on many other factors, doesn’t it? Eshop platform, web speed, ads graphics, UX and so on. If these conditions are not working properly, how can a marketer deliver excellent ads with stunning results?
Our business can only grow in the long run, if the eshop of our business partner grows: if a client puts an effort into building their business at all aspects, or when having a problem to do so, we are here to solve the problems.
Co-responsibility is important to me. I have built my company’s growth on it.
In order to be successful, we need to deal with business partners beyond performance marketing. Whether it’s programming work, internal processes automation or recruitment.
Conservative or Flexible? Your Reward Is Also Our Reward
We do not like to present ourselves as one of many agencies that sell their people’s work-hours. In Dexfinity, our performance marketers would rather get paid for their results than for the reported hours.
Flat reward = staying in the comfort zone
The most widespread way of compensation for work in our industry is the so-called “Flat fee”, which is either based on the allocated hours for the project or on the agreed monthly amount. This method runs if both parties worked hard to establish the correct amount.
I’m not saying the method is bad. However, the problems are the indifferent marketers and the clients who overestimate their ability to control their business.
In other words, the marketer will deliver only the results of the client’s good work. Even if a marketer delivers excellent results for a flat rate, they only get a flat rate.
Reward for achieved results = sugar and whip
What is the best time to implement a “reward for the results” model?
In bad times.
Some of our clients pointed out that they were the ones to bear the risk when the crisis came and they had a slump in turnover. We did not hesitate and agreed on a smaller fixed compensation and added a second component linked to the results.
Client growth should come first for every marketing company.
So What Does the Magic Do? Motivation on Both Sides
The reward scheme for the result is determined as a percentage of the achieved turnover. If we manage PPC campaigns on a margin, then from the achieved margin amount.
Do you know how this affects the team working on the project?
It is extremely motivating.
Since that their reward has no ceiling, they take the eshop as their own. It is an alchemy as they have to make a turnaround in the most cost-effective way.
The second criterion for achieving the highest possible turnover is the ceiling on the amount of spent credits. We always have an agreed cost-to-turnover ratio on projects. In this case, the marketing team usually prepares the strategy at the annual horizon.
Little Big Help from Our Friends …TOOLS
Now, you might be wondering if there are also some “magic” tools that make our work easier and more efficient. Obviously yes, there are. Let’s have a look at one of the most common tools used in PPC platforms – MagicScript.
MagicScript outperforms Google Smart Bidding
There is an option to manage PPC campaigns on a margin in our company.
PPC campaigns usually work pretty well for most businesses. Well, that’s the bright side of the moon. The dark side is the time it gets to manage your campaigns the best way possible. Especially, doing manual bidding on all your campaigns might get very challenging.
MagicScript is an intelligent algorithm that makes your PPC campaigns more effective. So how does it work?
- Allows you to bid products automatically according to the turnover ratio / ROAS strategy of the eshop in order to achieve the highest possible turnover or gross margin.
- Saves you dozens of hours of manual bidding.
- Better than Google Smart Bidding – saves you even more money by allocating your resources in the most effective way.*
- Increases your conversion rate.
Let’s go beyond
Those were some hard facts for your “beans”. To sum it up, we offer you cooperation where sky is the limit. The key is the co-responsibility for the results together with a fair motivational compensation. As simple as that.
If you are interested in developing your business by all means, we are here for you.
Thanks to the Dexfinity editorial staff for creating this article
Written by: Denisa Pufflerová
Editor: Martin Bartl
Published by: Róbert Hošták
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