Chances are that if you are a search marketer, you do not need me to tell you about the competition in search today. There is no shortage of it. Throw economic uncertainty into the mix, and you have a competitive marketplace like no other. Given that, 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.
Maybe you have thought about trying this type of pricing model before, but held back because you were unsure of what’s involved. Or perhaps you tried to pursue it in the past, but had trouble making it work for you and your vendor. Either way, you are not alone, as most marketers grapple with this decision as they try to assess which type of pricing model works best to maximize results.
Understanding the Model
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. Ultimately, it is designed to create incentive for your partner, drive overall campaign performance, and be a win/win for the marketer and vendor alike.