Why Can’t I Pay Depending on Performance?
This is a very interesting question: why can’t you pay your agency based on the performance that they get you?
And it’s a very valid question, particularly with managing eCommerce accounts because it’s very easy to see the ROI you’re getting, because you’re seeing the revenue in your AdWords account. You can see exactly how many orders, what they were worth and how much they cost you to get.
So why will most agencies no allow you to pay on performance? Some will, but it’s not very usual.
The biggest objection I tend to hear from people, and I go along with this as well, is that we are responsible for everything that goes on inside the AdWords account. If you’re managing the shopping feed you’re responsible for optimising that as well. Our job is to get the right people to click on your ad and get them to your website. Now once they get to that website that’s where they convert. That’s where they place their order. But that part is beyond our control. We have no control over what happens on that website. If you’re website is hopeless on mobile…? Now once I figure that out I’m not going to send any more mobile traffic to your site because I know they don’t convert. But once they’ve clicked on the ad and arrived at your website all that is beyond my control.
What happens when they place their order. What happened with deliveries? What happens with customer service? If there’s an issue with your customer service that means they don’t place that order, then I have no control over that. That’s down to you.
So, I’m very reluctant to say to you ‘I’ll get you x orders per month at an x% ROI’ because I might be sending you the best and most relevant traffic, people who are ready to buy, but if your website or processes at your end aren’t set up correctly or there’s an issue then they won’t’ buy.
That’s why most agencies don’t use that performance model. With lead generation (as opposed to ecommerce) it’s a little bit more common. Here a business could pay for every lead that comes through. But I’ve yet to come across (personally) an agency that works on an ROI basis, simply because we have no control over what happens to visitors once we’ve got them to your website.