We are outsourcing our

Hanuman07 · #1 (**permalink**) 08-28-2007, 07:52 AM

Hi, I have few questions about outsourcing AdWord campaign. We have started up with a vendor which I am not so impressed by. Our budget is 400k usd/year and they are charging us 12%. Personally I think its too much but all this was decided before I joined negotiations. Its not a super simple set up but should be a piece of case for an expert. Though the salesman where more impressed than the campaign manager.

My main problem here is the reluctance of the vendor to work on our account, not their own. If things goes wrong I do not want to start all over again but continue with another vendor.

What do you think, am I paying enough to demand what I do?

Ps. I have run smaller campaigns myself before, for myself and for others, but I do not call myself an expert. Guess still, a nightmare walked into this vendors life....

seolee · #2 (**permalink**) 08-28-2007, 01:59 PM

12% seems very high, unless their results to date show amazing achievement. You should be able to get an expert onboard for at least 10% or less.

imvain2 · #3 (**permalink**) 08-28-2007, 05:27 PM

wow 400k budget, I think with a budget like that you could get some really good search engine optimization done and not have to worry about PPC when you are at the top of the organic results.

**incrediblehelp** · #4 (**permalink**) 08-28-2007, 06:09 PM

Well how are the conversions? If your converting great then 12% may not be to bad. Conversion rate is the key here.

Duncan Pollock · #5 (**permalink**) 08-28-2007, 07:25 PM

I'm not sure how commited you are to the vendor and how easily you can cancel the contract, but I'd certainly refer your question to Perry Marshall. He isn't too interested in taking on any new clients but, with the size of your budget, I'm sure he'd be willing to give you an opinion, even if he charges you a few dollars for it.
He isn't the only AdWord guru but, in my book, he outshines all the others.
You can reach him via his home page at Use Google AdWords and the Power of Guerilla Marketing to Attract New Customers

Duncan

Hanuman07 · #6 (**permalink**) 08-29-2007, 03:27 AM

WOW! Thanks for input, much appreciated!

Unfortunately we have difficulties doing on page SEO as the technical implementations can only be done by our IT department. We are getting there. Therefore we are on a PPC track to start with. Just joined the company and I am amazed about the amount and lack of tracking.

Conversion seems to be less than 2% in average for previous programs we have ran. Agree if this vendor can achieve a high ration he could be worth his money. Talking to the person setting this up I must say I am getting cold feet's. Still not convinced she knows more than me....

The sales guy promised gold though... and that's what my boss bought.

Thanks also for the tip that Perry Marshall may be interested in taking us on. I will consider contacting him.

Does any of you know is there are any web page with web metrics averages available out there? Would like to find KPI especially for landing pages (we are at 1/15 now) and our ad-groups performance.

David Betterton · #7 (**permalink**) 08-29-2007, 04:07 AM

[quote=Hanuman07;334913]Hi, I have few questions about outsourcing AdWord campaign. We have started up with a vendor which I am not so impressed by. Our budget is 400k usd/year and they are charging us 12%.

I am interested in this pricing model. Is it 12% of 400k? Does your vendor not earn at least 10% commissions on your 400k? [He should be]. Would it not be better for your vendor to charge you AdWord fees nett of his commission, and then work for a standard monthly management charge? This seems a fair and reasonable way to develop a relationship

Hanuman07 · #8 (**permalink**) 08-31-2007, 05:28 AM

As it is now we pay in advance booth their commission and our next month PPC budget. They earn 12%. We spend 400k usd over the year.

They do not want to build he campaigns on our own account as they say its benefits their customers if accounts could be reused and benefit from previous successful campaigns??? Is this true?

Personally I feel our vendor is slippery as a snake.

Moderator: please adjust my original subject to include PPC campaigns, "We are outsourcing our PPC campaigns"

khurramali · #9 (**permalink**) 09-20-2007, 12:59 AM

Quote:

Originally Posted by Hanuman07

They do not want to build he campaigns on our own account as they say its benefits their customers if accounts could be reused and benefit from previous successful campaigns??? Is this true?

IMO, there is no problem for them in creating your campaigns in your own adwords account, Adwords allows them to control your campaigns from a special account called "My Clients Centre" where you would allow them to take charge of your campaigns, this way you could monitor your own campaigns and even tweak some of the running ads.

I am managing several campaigns for several clients this way, it has the added benefit that the clients can help tweak their campaigns as it is their business and they know their products and services better.

It has the added benefit that the clients can discontinue my services if they are not satisfied with my work and they can then take charge of their own campaigns and run them. it will just take them a few clicks to cancel my access to their account.

tamecrow · #10 (**permalink**) 09-20-2007, 04:29 AM

Hanuman07 - Does this company's name begin with a P? I don't mean to put you on the spot, but it sounds very much like a company we were involved with in the past, and they've left a sour taste for a few of our clients. If it's who I think it is, we actually end up taking a surprising amount of their clients who have just had enough.

Hanuman07 · #11 (**permalink**) 10-17-2007, 07:54 AM

No, the company name does not start with a P, but either S or N

But they hardly know this better than I do!?

Their only interest is to turn on and let it cost.

I am letting money poor out of the their account and set up a new set of campaigns under my own MCC. One account for each of my projects (10-15 when I am finished).

I will pay vendors per hour and ask for detailed job descriptions as they invoice. I plan to ask for 20 hours per month and it should give me loads of help. I will pay fixed hours for setting up campaigns and per hour for tweaking campaigns. I believe this is the best way. Comments?

Later I would like to have 2 different vendors working different campaigns. Not for competition but to make sure we are doing the outmost. I will always work one myself. Both vendors should beat my numbers, that's a major requirement´

I should focus on improving landing pages and converting leads to sales.

Thanks for all help over the forum. I have learned a lot thanks to you.

Now I am searching for a contract both of us could like