Can a Pay-Per-Performance Pricing Model Work for Your Agency?
3 Golden Nuggets From This Episode
1. An unbelievable model. The pay-per-performance model may not be for everyone, but it has worked for our guest, whose model has evolved to charging a percentage of the profit. Clients jump at the chance of getting the service and paying only if the ads work and bring the expected results. They may not be as eager once they start sending the payments, but Kyle trusts his model and is confident that it gets the best results.
2. Refine your criteria. At first, this agency didn’t necessarily know what the criteria for working in this niche had to be. They thought that working with companies that showed promise was good enough to ensure success. But with time and experience they have adjusted that to working with companies that have a certain monthly revenue from the product that they want them to advertise and have a sales team. Now clients practically audition to work with them and not the other way around.
3. Maintain communication. Each client thinks about things a little differently and some may not understand why it’s better for them to pay an agency an amount that they would gladly pay to Google. To address this, Kyle and his team realized the importance of maintaining communication with them to present the progress they had made and how they stay on top of things. Hence, the email-only communication with clients turned into monthly or bimonthly meetings.
Ever wondered if you could make money on performance-based pricing? Kyle Sulerud was a Google ads expert with many years of experience in the space. He even had a training program teaching others his Google ads methodology. That was until he was presented with the challenge of running YouTube ads. Today he runs AdLeg, an agency specialized in this niche. Kyle joins the podcast to talk about his experience with the pay-per-performance model, how it has worked for him, how he refined his criteria to work with clients that he could ensure success, and the hurdles he has found in his learning experience.
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JASON SWENK IS AN AGENCY ADVISOR THAT GUIDES MARKETING AGENCIES THROUGH A PROVEN FRAMEWORK FOR GROWING THEIR AGENCY FASTER & EASIER. m
In 1999 he launched a digital agency that quickly grew to a multi-million dollar operation working with brands such as AT&T, Hitachi, and Lotus Cars. After 12 years of amazing growth, his agency was acquired in 2012.
Now, Jason leads JasonSwenk.com, a unique media company & consultancy helping marketing agencies grow, scale, and enjoy running their agency by applying the framework that he used to grow, scale and eventually sell his agency. Jason has helped over 20,000 agencies in 42 countries meet or exceed their business goals.
Jason generously shares it all as a frequent guest on popular radio and podcast shows. He has been featured as an expert in top media publications such as Entrepreneur and Inc. Magazine. Plus, he currently hosts two of the best agency podcasts:
The Smart Agency Master Class Podcast, dedicated to providing tactics and strategies to agency owners and decision makers that cut through the BS, focus on exactly what works and what doesn’t; and
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