Forum Moderators: open

Message Too Old, No Replies

Need advice on pay-for-performance SEO user rates

         

MadScientist1

3:48 am on Aug 19, 2001 (gmt 0)



I'm getting ready to switch from doing corporate SEO consultation to running my own SEO positioning service and I'd like to offer a pay-for-peformance as one of my billing options. I'm trying to set a reasonable range of per-user charges for the service but don't really know what's the standard pricing for this type of thing.

I know we're not allowed to post rates in the forum but would someone who's familiar with this type of business model mind emailing me a rough idea of standard per-user charges?

[ex: adult:$.50-? non-adult: $.10-?]

thanks!

agerhart

5:02 pm on Aug 19, 2001 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Welcome to WmW MadScientist1,

I am not sure as I do not charge my clients this way, but I will ask some people to chime in their opinions.

On a sidenote:

Do you find this type of billing effective?......or do you favor it over standard billing?

Brett_Tabke

10:53 am on Aug 21, 2001 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



Are you talking PPC?

Then start at Goto and deduct 50%.

agerhart

12:46 pm on Aug 21, 2001 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



MadScientist,

Now, I think I am a bit confused. I thought that you were referring to charging clients on a performance basis. Did you mean this or PPC?

dogboy

1:11 pm on Aug 21, 2001 (gmt 0)

10+ Year Member



MadS1,
well, I'll tell you that *very* few in the adult industry would even consider a flat click fee unless they are buying exit traffic... they just have too many good affiliate programs at their disposal.... why should they pay what you *think* the traffic is worth on a per click basis, when they can pay *exactly* what it *is* worth on a per sale basis?

BT, 50% of the #1 at goto? nice.... never heard anyone come up with that figure... have any evidence to back that up? Might try to use that figure in a proposal which is trying to qualify the 'going rate' of traffic

MadScientist1

8:56 pm on Aug 21, 2001 (gmt 0)



agerhart, yes I was talking about pay-for-performance SEO and I think Brett was also when he mentioned PPC.

Brett can you confirm that you meant PPC/pay-for-performance SEO. The guide you mentioned sounds like a goos start.

dogboy

11:43 pm on Aug 21, 2001 (gmt 0)

10+ Year Member



ppc = pay per click = you (as an seo) gets paid on sending unique vistors (usually based on the IP of a surfer) to a site whose owners pay you for (unique) clicks.

pfp (I just made that up) = pay for performance = you (as an seo) gets paid usually for either generating leads or sales to a site whose owners pay you (usually a commission) based on how your traffic converts... in other words, you get paid for sales only.... you don't get money for just generating traffic.

.... at least that is how I understand it. BT defined PPC as PPC as:

Pay Per Click. A Pay-Per-Click search engine charges websites on a per click basis. Often, an auction is held to see who is willing to pay the most for users..

[searchengineworld.com...]

....but I dont see one for pfp... anyone?

MadScientist1

1:21 am on Aug 22, 2001 (gmt 0)



lol - guess I meant PPC SEO then. :)

dogboy

2:56 pm on Aug 22, 2001 (gmt 0)

10+ Year Member



....I'm not so sure, I could be wrong too... we need someone else to chime in.... alot of seo terminology is created right here, but the whole point of coming up with new words is to communicate with each other so I'm glad you brought this up...

...anyway, I'm afraid I got this thread going in the wrong direction... so you want to bill clients on a ppc basis? Well, unless you are just going to help them spend their money at GoTo, then you are going to need to some good stats that your clients will recognize as credible.... and that ain't cheap.... I have an Enterprise Edition of NetTracker (www.sane.com) with licenses for 10 domains. It gets cheaper the more you get, but still that cost about $1500... and it isn't set up to autobill clients, etc. ....so I hope you are a programmer.

Of course, you can get other, cheaper stats, some very good, but if I was going to pay you $/click, I would be skeptical unless I had realtime access to exceptionally detailed stats so I could see where this traffic was coming from.

MadScientist1

6:20 am on Sep 3, 2001 (gmt 0)



Since I'm on a shoestring budget I was thinking about starting off with WebTrends Live. I thought that since all the click-thoughs could be verified on the client side and since my end would be controlled by a third party that this would be a good solution. They offer a package for $25.00/mo that offers automatic scheduled reporting via email. Combined with the clients log files do you think this would be at least an adequate solution?

Brett_Tabke

2:51 pm on Sep 3, 2001 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



PPC: Pay-Per-Click
CPC: Cost-Per-Click
CPM: Cost-Per-1000 views.
CPA: Cost Per Action. (product purchased or some other action was generated by user. Usually on a percentage of the sale basis. Many affiliate programs use this model).
PFP: Pay-For-Play: In reference to search engines that charge for submission or spidering.

I think it's CPA you were looking for DB.

>BT, 50% of the #1 at goto? nice....

I look at the median average at Goto. Often, the #1 listing can be in "outer space" where they are paying 50% more than the #2 spot. If the results on Goto are (.30,.25,.24,.23,.22,.21,.15,.10,.07,.08) - I would go with .15 to .20 depending on the category.

That's what I think is legitimate. Once you show the client the referral strings coming from other search engines, you can bump that up (sometimes even higher than Goto is getting). The best tip is to send the client a report comparing what they paid to what their competition paid on Goto: We saved you $xyz last month over your competition.

Mike_Mackin

3:13 pm on Sep 3, 2001 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



>PFP: Pay-For-Play: In reference to search engines that charge for submission or spidering.

as well as:
PFP [tm] GoTo.com
"Introduction
GoTo is the Internet's leading Pay-for-Performance™ search provider."
[goto.com...]

George

10:39 am on Sep 9, 2001 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Interesting thread foks, and I have another angle. How do you charge for managing a Goto account for someone? I do it by negociating a rate per visitors, and then it is up to me to get the best value. It is flawed, though, as sometimes phrases go above the price i am paid, so i drop out of the running!
Any thoughts?

george

nemesystem

9:10 am on Sep 14, 2001 (gmt 0)



Pay-For-Perfomance in SEO usually means to pay a fee for top 10 or top 20 results or maybe the SEO firm will charge a flat fee and guarantee certain number of top 10's and top 20's.

For CPC (Cost-per-Click), you can look at some existing firms to get an idea. One firm that I will not name, charges $399 non-refundable setup fee and .29 cents a click afterwards. Another firm charges $3500 deposit and .35 cents a click gets subtracted from that and gives a discount going down to .25 cents if the client places a large deposit. Most SEO's will not charge less than .25 cents a click for general terms and .50 cents for competetive terms.

On a related note, does anyone know of tracking/site stats software besides AddWeb Site Promoter that can track CPC terms with dollar value??? Meaning you can assign a dollar value to each keyword and it will calculate what the client owes you.

DrCool

4:41 pm on Sep 14, 2001 (gmt 0)

10+ Year Member



I would agree with Brett that 50% of GoTo's highest bid is a good benchmark. On more competitive market segments I will tend to go a bit on the high side of that though. I think it is very unwise to charge a flat fee across the board.

MadScientist1

8:44 pm on Sep 14, 2001 (gmt 0)



Thanks for all the great advice!