Traditional marketing agreements consist of contractors paying an up-front service fee to companies or firms, normally to cover the labor for things like web design, SEO, PPC, and social media. The problem with this service model is that it presents a great risk for the contractor. If the marketing campaign proves unsuccessful (no leads are generated), the contractor is left with a website that serves no purpose, and social media profiles that are just taking up space.
How should you measure success? Through contractor lead generation. Every aspect of internet marketing is designed with one objective, acquiring leads. With this known, it stands to reason that contractors shouldn’t be paying for websites and search optimization, but for the leads themselves. With pay-per-lead marketing, upfront payments are eliminated, along with the risk of massive investment loss. Consider these 5 advantages of pay per lead:
In a typical marketer and client relationship, the client is held most accountable. Why? Because their investment is made before results are produced. They are relying on an external source to prove successful, and have a great deal to lose if they don’t. In contrast, the marketer can do a terrible job, produce no leads, slack off on important details, and still get paid.
Of course, shortcomings will hurt a company’s reputation, but that is a more subjective characterization. Loss of marketing dollars is objectively provable and can be quantified. With pay per lead, the accountability shifts from the client to the marketer. Since the marketing company only gets paid if they generate leads, they will have increased motivation to accomplish that goal.
2) Cost Efficiency
Plumbers, roofers, HVAC, and other industry workers spend a fortune each year on marketing. But without a profitable return on investment, all of that spending failed to produce tangible benefits for your company. So next time you are hiring marketing services, try to focus more on ROI than any other aspect. That can be tough when marketers try to lull you into a false sense of intrigue, with inconsequential statistics, anecdotes, and other largely irrelevant musings. The key is to have tunnel vision. Let them know you are only concerned with the bottom line.
What’s the cost of doing business? That depends on the model of your business agreement. The goal of every business, at least in the abstract, is to increase profit. But when attempting to optimize that goal, many companies fall back into traditional behaviors, making investments based on qualitative research, and being satisfied with perceived results. At Contractor Webmasters, we monetize the bottom line. Your cost will correlate only with the tangible leads you acquire. You will never pay a dime until leads are generated.
To truly understand the concept of pay per lead, you have to change your conditioned thoughts about marketing in general. Often, when we think about marketing, we think about the process rather than the result. Wow… they have a strong social media presence. Wow… they have a beautifully designed website. Even with the implication that those qualities contribute directly to lead generation, let’s not lose sight of the actual leads, for it is those that will ultimately define our success.
Picture going to a restaurant, paying for a meal up-front, but then not receiving it at your table. They tell you, “you weren’t paying for the meal, you were paying for the process of making it.” Since the restaurant had to spend money on the ingredients, the kitchen utensils, the grill, the oven, etc., and the cook spent time putting it all together, they will argue that you should pay for the labor. If that sounds ridiculous to you, why won’t you use the same logic for marketing firms? Websites and advertisements have no value without leads, and it’s time for contractors to start accounting for that.