Pay me for performance?

Wondering if I should try PFP on an SEO/SEM effort

[intellivision]

This is my first <snip> client, and I'm thinking about doing a PFP deal with him. Should I? Example: I get $X for a (transaction) he does that originates from my SEO or SEM work.

Or Should I stick to hourly rate?

I'm good at SEO and SEM. Not brilliant, but my clients are happy and I deliver results. I've been doing it for 5+ years.

His site now is powered by a third party site building company <that operates in his space>, and it ranks poorly in Google.

Ancillary question: I could take the SEM costs on and charge even more for a conversion?

Note I've known this guy for 10+ years and I trust him to be reasonable with honoring our contract, specifically regarding lead origins.

[edited by: caveman at 8:18 pm (utc) on Sep. 23, 2008]
[edit reason] Removed specifics, per TOS. [/edit]

[wyweb]

That's going to be up to you and your client. I'll apologize in advance for this non-answer but there is "no one size fits all" with regard to dealing with customers. If you're big and can command standard industry rates you wouldn't have asked this question at all so I'm assuming you're a little guy like me.

What we do is we feel out the client. We make an educated guess based on answers to questions we have already asked in a half assed effort to determine, 1) Are they serious? and 2) How much money do they have to spend? If they're serious and their budget doesn't insult me that much, we're probably going to do some business.

Hourly rate -vs- commisson based... That's dealer's choice. One thing to keep in mind is that the bottom line isn't always what benefits you the most. You need to take care of your client. He'll tell people if you do. Take care of him well enough and he'll brag on you and you can't EVEN put a price tag on word of mouth. It's invaluable. Having said that, you still need to balance your own costs with what you're making. You can't sell yourself short. It's generally a fluid situation. What can they spend and what do I need and where do I draw the line between these two. If you're big, you charge a set rate and they either take it or leave it. If you're a little guy like me, you assess the climate and react accordingly.

Not what you were looking for but this is the only way I know how to answer your questions...

[undercoverseo]

That's a tough call and one I faced recently.

My opinion on it is there are so many factors to a site being successful. Search engine traffic alone won't make a site profitable. The site's got to convert, it also has to have a sound business model.

Another thing to keep in mind as well is that you may not have a say in how things run, so you could be working your heart out and sending them droves of new visitors...but if they have poor customer service or a shoddy site...the sales might not come to fruition. If it is a lead gen type of site you're heavily relying on their sales guys to close the leads.

Not exactly answering you directly, but points to consider. Good luck!