Metric-Adwords

[webtappeti]

We are hiring a professional to optimize/look-after our Adwords campaigns and would like to bind part of his compensation on results.
Is it a good idea? And more important what metric should be used ( conversion rate, traffic, cost of click )?
It would be great to have the opinion of the merchants as well as the one from the professionals.
Thanks for your help.

 

[matt.chatterley]

We are hiring a professional to optimize/look-after our Adwords campaigns and would like to bind part of his compensation on results.
Is it a good idea? And more important what metric should be used ( conversion rate, traffic, cost of click )?
It would be great to have the opinion of the merchants as well as the one from the professionals.
Thanks for your help.

Overall, the main thing which you want to track is ROI - Return on Investment. E.g How much money do you make from adwords related sales BEFOER and AFTER/DURING "professional" management of your account.

How you decide to arrive at this is down to you, but if you have the capacity to track conversions then it shouldn't be too tricky to take the total (gross) value of sales from adwords conversions per month and balance it against the cost of running adwords (plus any fees incurred).

Are you going to be doing any split-testing/optimizing of your web content in addition to having adwords managed?

 

[fisicx]

As suggested it is the ROI that is important. But you may well need to change your site to suit the needs to the adwords visitors which may well be very differtent to the organic visitor.

A good adwords comopany will recommend the necessary changes to the site.

 

[webtappeti]

Overall, the main thing which you want to track is ROI - Return on Investment. E.g How much money do you make from adwords related sales BEFOER and AFTER/DURING "professional" management of your account.

How you decide to arrive at this is down to you, but if you have the capacity to track conversions then it shouldn't be too tricky to take the total (gross) value of sales from adwords conversions per month and balance it against the cost of running adwords (plus any fees incurred).

Are you going to be doing any split-testing/optimizing of your web content in addition to having adwords managed?

Yes, I realize ROI is just about the only parameter we should care for. However, how to measure ( and adequately compensate ) the improvements the professional will most likely bring on our PPC campaigns it remains a bit tricky.

They offered:
Euro XXXX to make the initial adjustments on our campaigns ( actually to start from scratch )
+
Euro XXX per month to adjust/fine-tune them and monitor results.
1 year agreement

I would like to offer:
Euro XXX per month ( exactly the same amount they asked )
+
Euro XXXX ( double the initial fee they asked ) if both the following results are reached:

a) At least 10% dicrease of our annual PPC spending ( based on the last 12 months ).

b) 25% increase of conversion rate ( again, based on the last 12 months ).

The numbers work for us and, while ambitious, it shouldn't be impossible to obtain, as the campaigns we have now are definetely amatorish.

What do you think? Does it make any sense?

 

[OldWelshGuy]

It makes sense, but are you willing 100% to make any changes he/she requests made to the site, because if not, then your secnd condition becomes unworkeable.

Time after time, in SEO chats, the overriding issue is of clients refusing to make suggested changes, or arguing about them for one reason or another. I have lost count of the number of times i have been told " I don't see how that change is going to make a difference"

PFP is fine, PROVIDED there is 100% freedom given.