March 22, 2009

How to Successfully Hire a PPC Manager and Avoid Getting Burned!

The excerpts below are taken from the free white paper "How Much of YOUR Money Will Your PPC Manager Waste This Year? — Essential Questions You Must Ask Before Hiring a PPC Manager."

If you would like to sign up to get a free copy of the complete white paper you can find it here. The white paper is available in PDF and Audio MP3 format.

If you're like many PPC advertisers, you've already been burned at least once by a PPC management company. We hear horror stories day after day of how business owners lost money through their PPC managers. The questions below will help you quickly find the PPC management company that fits with your company's marketing objectives so you can start creating more profits.

1. Will you be managing my campaign, or are you just a sales rep?

Most often, before you sign up with a PPC manager, you will talk to a salesperson who knows very little about Pay Per Click management or how to solve your unique problems. Their job is to sell you their solution, not necessarily to understand your unique circumstance and actually solve your problem.

*** Before you hire any PPC management company, you must have an open and honest dialog with someone who has had hands-on experience with Pay Per Click management (and preferably is the person who will be working on your account).

2. How much money will you make me?

Key word = money. Talking about real money and real return on ad spend is what typically separates the high value companies from the pretenders. You have to have a real conversation about money (gross revenue, gross profit, net profit, and return on ad spend) with any PPC company that you consider hiring. And while no company can guarantee a return, every PPC manager should be able to honestly assess your situation and give you a very clear picture of risk versus reward.

3. What species of PPC management company are you?

There are so many different types of management solutions out there that you can’t count them on one hand. Some are better suited for smaller companies, some for larger companies. Some are complete solutions, some are partial solutions. And some aren't solutions at all — they simply buy "dumb" traffic for you, without ever optimizing or improving the results. Of the 8 different species, which PPC management solution is right for you? Unfortunately, the descriptions are too long for this blog post — you have to download the  white paper to get the full details!

4. Do you know what you're doing? Are you certified?

While certification does not always equal qualification, you should insist on certification as a minimum standard. But, to truly understand how to help businesses make money using PPC advertising takes years of in-the-trenches experience. The only qualification that really matters is a proven track record of results.

5. Will you put your money where your mouth is?

Real guarantees are very hard to come by in this industry because, by its very nature, PPC marketing can be unpredictable — even in the most stable economy executed by the most skilled optimizers. That said, your PPC manager should be able to guarantee something and that guarantee should be rock solid. The strongest guarantee is a performance-based management program, where the PPC management company actually puts some skin in the game. Even if you have to commit to a longer-term program, it's worth it to reduce your risk and hold your PPC management company accountable.

6. What do you know about my industry?

While it's impossible for a PPC manager to have had experience in every industry, you must partner with someone who has a working knowledge of your online sales process and business model. Most models fall into one of these categories: ecommerce, lead generation, information products, membership sites. Never do business with someone who cannot provide references for your online business model.

7. How do you charge?

Ok, get ready — this is where things can get a bit confusing. There are so many pricing models out there, and more are being invented every day. Each has advantages and disadvantages, and you have to decide which fits your business goals and risk tolerance best. The four most common are: (1) percentage of spend, (2) flat monthly fee, (3) payment per keyword, (4) performance-based fees. Again, to read the details about each one, download the white paper here.

8. Do you offer monthly or yearly contracts with an "easy out"?

PPC contracts are either month-to-month or longer term, with advantages and disadvantages of each. For most people, month-to-month may be the most attractive — you can “stop at any time”. However, there is very little incentive for the PPC manager to make significant investments in your account if they know you can quit at any time. Results are often much slower and less impressive. Long-term contracts can get fast results, but there is usually some initial setup fee and the commitment is longer. A hybrid is best — initial investment for fast results with an early-out clause for non-performance.

9. Do you charge setup fees?

All reputable companies charge setup fees. This is because a good percentage of the work that needs to be done to either set up or overhaul an account happens on the front end. Without the setup fee the PPC company can’t justify putting in the needed resources to really setup or overhaul your account properly. Do not sign up with anyone until they have spelled out what they are charging you for and how it will help you.

10. How will my optimizer be rewarded?

This question is almost never asked but it is crucial that you ask it. Will your optimizer have enough time to fully optimize your account? Will they be rewarded if it performs well? You deserve to know their motivation, availability, and trustworthiness — he or she will be your partner in your PPC success or your PPC failure.

11. In English, how will you make me money?

Pay Per Click account optimization and setup is a fairly technical business. But your optimizer should be able to explain to you in plain English what they will be doing to your account and how this will help move your business forward. Demand a pre-contract assessment before you sign a long-term contract, and have them prepare a detailed strategic plan for your website and your PPC account. The plan should be actionable and clearly outline your strengths, weaknesses, opportunities, and risks.

12. How will you track my results?

Effective results tracking is essential for Pay Per Click success. Not just superficial metrics like click volume, cost per click, and click-through-rate. While these are important, they are not nearly granular enough to give you any real insight into your account. Any reports must show how your PPC statistics relate directly to your bottom line.

For more detailed information download the white paper.

Filed under Google Adwords, PPC Management by

Permalink Print