Should I charge based on gross or net?

Posted By: major_clicks ()
Posted On: 2007-Jan-27 12:18

Hi Guys

I am new to the forum, so I will thank you for your input ahead of time.
I am a new ppc manager. I am working with a small local company that sell central heat and air unit online. I need to tweak their offering as well as their website. My big question is should I base my charges on a percentage of the gross sale per unit after Google fees or on the net profit per unit ( which of course is alot less )? I really need this account as it would be my bread and butter.
Again thanks in advance.


Posted By: mj1256 ()
Posted On: 2007-Jan-30 03:17

What I do is make a deal to take over all of the internet sales as any salesmen would take a territory. I need total control of the website if I'm to be successful. If not, their control, imposed limits, and lack of internet marketing knowledge will prevent your success. If you come up with a ten point internet plan and they only let you do points 2,5 7 and 8, you will fail. Do let them set you up for failure.

If you can track all the net sales, you can get the credit for them. If the purchase is online, you take all online sales, if its by email, use a unigue address, if its a phone lead, use a unigue phone number.

I take a flat fee for four months and after that I take a percentage of the gross per month. I never go back to the flat fee, the onus is on me to produce. My incentive to make more commission is my incentive to keep working on the site. After the first four months they have no risk. I do.

Because I'm successful and know what I'm doing, I have no problem working on a performance basis. If I can't participate in my own success, why do it.

You may not what to just take the google revenue, because there are more ways then google to make money on the net. Why limit yourself.