Discussion: Making Paid Search Performance Pricing Work For You

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Marketers are looking high and low to get a leg up on the competition in any way they can. And while it may seem like an unlikely candidate to get you there, paid search performance pricing might help you do just that, as it can certainly drive results.

Performance pricing is an incentive based compensation model formulated by the marketer and vendor based on the achievement of clearly defined goals. The chief benefit of the model is that it provides the opportunity to develop a mutually beneficial plan where both parties’ goals are aligned.

Overall, a performance-based compensation model can truly be a win/win for you and your search engine marketing partner. Not only will it help to drive results and bring your partner’s goals in alignment with your own, it will allow you to reward your partner for superior performance while keeping your overall ROI in mind. Doing it right takes a bit of time, effort, and planning — but is well worth the effort in the end. My advice? Don’t just settle for a leg up on your competition. Instead, use paid search performance pricing to blow by them completely. Once the dust settles, they will still be trying to figure out what happened.

Are you a search engine marketing professional or a firm employing the performance pricing model with your agency? Please share your experience here.

About the Author

Andrey Milyan was the first editor-in-chief of Search Marketing Standard, the leading print publication covering the search marketing industry. He has been following and reporting on industry developments for over 10 years. Andrey now works in the paid search sector of a prominent search marketing agency.

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