As a follow up to “10 questions I’d ask a prospective SEO consultant,” this week I’ll cover 10 questions I’d ask a prospective PPC (pay-per-click) consultant. PPC consultants (or agencies) buy PPC ads on your behalf to appear on Google, Bing and other places.
1) How do you structure your fees?
There are several ways PPC agencies can structure fees, all of which have things you have to watch out for. Here are a few:
Percent of spend
The PPC agency will charge you, say, 15% of everything they spend as a fee.
What to watch out for: The PPC agency is incentivized to simply spend as much money as possible without optimizing the quality of traffic. If you do this, watch out for ever-present pitches trying to convince you to increase your monthly spend without first proving positive ROI (return on investment). Also watch out that the agency isn’t buying junk traffic just to run up your bill.
Fixed fee
The PPC agency will charge you a fixed amount per month, regardless of what you spend.
What to watch out for: A PPC agency on a fixed fee model doesn’t have any incentive to do anything other than keep you from canceling, or, if you’ve locked yourself into a multi-month contract, then they don’t have any incentive to do anything, really. You’ll need to make sure that the agency is spending at the monthly level they’re supposed to and monitor traffic quality.
Another thing to watch out for, if you’re paying up front, is that the agency doesn’t pocket the difference if they don’t spend at the level they’re supposed to. For example, if you pay an agency $1,000/mo, and they’re supposed to spend it on ads, but they only spend $500, make sure the other $500 rolls over to next month instead of rolling over into the agency’s pocket.
Performance based
You and the PPC agency will agree on a type of conversion, let’s say phone calls, and the PPC agency will agree to charge you $XX per phone call.
What to watch out for: You’ll need to make sure that PNCs (potential new clients) are turning into real clients. If the PPC agency gets paid to make the phone ring, then they’re incentivized to make the phone ring as much as possible, even if it’s people calling for free advice, or if it’s people asking for services you don’t provide. It could even be salesmen calling you. Unless you keep a close eye on whether PNCs are turning into real clients, performance based pricing can lull you into a false sense of security.
That said, if you’re paying for phone calls or emails, you also have to take some responsibility for how many potential clients turn into real clients. It’s your job to make that percentage as high as possible.
Which model is best?
I wouldn’t say any one model is necessarily better than another. Ultimately what matters is that the agency is sending PNCs your way and those PNCs are turning into real clients at a rate and price that creates a positive ROI. Pricing models are different ways of skinning the same cat. Just keep an eye on whatever bad behavior your pricing model may incentivize.
2) Do you offer call tracking?
In my opinion call tracking (the ability to tie phone calls back to PPC campaigns) is absolutely crucial for professionally managed PPC for local businesses.
Most people prefer to call a doctor or lawyer rather than write an email or fill out a form. That’s why if you’re interested in tracking the ROI of your PPC efforts accurately, and you should be, then you’ll need call tracking. Without call tracking, you won’t really know how much you’re paying per PNC, and without that, you’ll have no idea whether you’re flushing money down the drain.
Not only should you ask if call tracking is available, but you should also ask about the granularity of call tracking. For example, will you only be able to tell how much you’re paying for all phone calls generated by the PPC agency? Or, in the case of a lawyer, will you be able to break down how much you’re paying for phone calls from divorce clients vs. personal injury clients?
Because different kinds of clients generate different kinds of revenue, it’s helpful to be able to break down call tracking by practice area, that way you can optimize your campaigns efficiently.
3) How do you handle reporting?
All PPC agencies offer reporting of some sort. At the end of the day, only three things really matter:
- How many PNCs the PPC agency is generating.
- How much you’re paying per contact with each PNC.
- How many PNCs turn into actual clients (quality).
Beyond those three things, it’s simply a matter of granularity, and if you know these things, you can figure out your ROI.
Beware of fluffy reports that don’t tell you anything useful. For example, merely knowing that you received 500 clicks last month doesn’t tell you anything if you don’t know whether those clicks turned into clients or just wasted your money.
I’ve seen plenty of PPC reports that tout things like “We’ve reduced your cost per click by 20% from when you were managing this yourself.” The client thinks, “Wow! You’re saving me 20%!” In reality, who really knows if the client is better off—without tracking things like phone calls and emails, it’s entirely possible to cut off meat instead of fat.
Another thing to watch out for with reporting is hidden fees. For example, I once saw a PPC agency that was charging a client something like 50% of spend as its fee, which is pretty outrageous. But the client had no idea half of his ad spend money was going straight into the PPC agency’s pocket because the monthly reports rolled fees into the cost per click figures. In other words, if the actual cost per click of his ads was $5/click, the PPC agency would report it as $10/click.
4) What PPC networks do you advertise on?
Ideally, a PPC agency will go beyond advertising simply on Adwords and buy advertising on a variety of other networks. Advertising on other networks can be a huge pain, but hey, that’s why you’re paying someone else to do it. While Google Adwords may dominate the share of searches, that doesn’t mean there aren’t other places to find potential clients.
Also, if the PPC agency says they do advertise in other places besides Google, make sure they’re not just referring to the Google Content Network, which allows you to place ads through Google on all sorts of websites besides Google.com. There’s nothing wrong with advertising on the Google Content Network, but it’s not the same as actually advertising through other networks outside of Google.
5) How do you manage PPC to maximize ROI?
The point of this question is to get some sense for the degree of professional management that goes into the job. Unfortunately, there are some PPC agencies that don’t do any ROI optimization whatsoever. They simply take your money, setup your ads, and then let them run, enjoying your monthly fee. This is a great business model for PPC agencies – they do some work up front, and then get your monthly fees forever thereafter – but it’s a bad deal for you.
A good PPC agency earns its fees by constantly testing and optimizing your account to increase your ROI. This includes testing different keywords, adding negative keywords, testing conversion rates on ad copy, keywords, even running ads at different times of the day, etc.
6) Who is in charge of PPC management and what is his/her background?
There is no ideal background for a PPC manager, but what you want to make sure of is that you’re getting someone who has experience running PPC campaigns vs. PPC sales.
Here’s what happens – PPC management is a hot industry, because all across America small businesses are clamoring to get online. Enterprising entrepreneurs have responded by setting up PPC agencies with huge sales operations who call on businesses all day to prospect clients.
It doesn’t take these sales people long to figure out that if they were to open up their own PPC agency, they could be making a lot of money, especially since all that’s required is a phone and a computer. After all, they already know how to find PPC clients, since they sell to them all day.
Unfortunately many of these people specialize in sales, not PPC management, so they don’t really know what they’re doing, despite being able to speak the language. And it’s not even just entrepreneurs. Many PPC agencies desperate for warm bodies will gladly take a sales person and slap the label of “PPC consultant” on him, even though he doesn’t really know how to manage PPC
So, when investigating the background of PPC managers, keep an eye out for a resume that looks more like a sales resume than a professional internet marketing resume.
7) What have you found works with well with lawyers/doctors that doesn’t work well with other verticals?
In some ways, PPC management is all the same regardless of whether you’re selling coffee machines, cruises, divorces or brain surgery. In other ways, it’s much different, particularly if you branch out of Google Adwords.
That’s why an ideal PPC agency will have experience in your industry. Asking about the agency’s experience with your industry, and finding out what works and what doesn’t, is an easy way of gauging relevant experience.
8) How many other clients do you have in my area that do what I do?
PPC is a competitive, zero sum game, so the last thing you want is a PPC agency with a conflict of interest because they’re managing two Houston LASIK doctors competing over the same keywords. So, ask a prospective PPC agency if have any other clients in your geography who specialize in your practice area. Also ask them what their policy is to avoid conflicts of interest.
9) Can I see some samples of ad copy?
Some PPC agencies are lazy and use formulaic ad copy. You can identify formulaic ad copy because it sounds stilted and unnatural. It’s all about repeating keywords. It also doesn’t speak to any distinguishing factors that would allow a reader to understand why a given doctor or lawyer is any better than others.
A good PPC agency will get to know your business and communicate what makes it special in ad copy. So take a look at the ad copy of other clients and ask yourself if you’d hire that person based on what you’ve read. Remember, ad copy, even when it comes to PPC, is partly an art, so it shouldn’t look like a computer wrote it.
10) What are some trends you’ve noticed in the PPC world?
The point of this question is to see how on top of the industry the consultant is. In the world of internet marketing, things change quickly. If a consultant isn’t able to speak about trends, then it signals he’s not keeping an eye on changes, and likely isn’t offering cutting edge solutions. Another way of asking this question is to ask what industry publications or blogs the person reads. Believe it or not, there are people out there who claim to be professional PPC managers who don’t keep up at all with the PPC industry.