thought i’d thank you all for your comments.. i’m glad its sparked some interest and so many others are thinking along these lines.

A quick update from us is that it looks like we might be about to secure our first payment upon results client. It is a major UK brand (though for obvious reasons I cant disclose who) and we have agreed a mixed fee / incentive based model and haev verbally agreed the terms this morning.

It isnt quite the full integrated service with our this contract being based around SEO and reputation management but the client has really grapsed the concept and the system seems fair and equitable to both parties.

I’ll keep you posted on how this goes..

Cheers

Alex

I think the growth of this industry within the next few years will be phenomenal, but for a few other reasons as well. More start-ups will start, small businesses arise, but also the growth of the mobile net. The traditional advertising methods (a la black & white newspaper ads) just won’t be as effective for small businesses, and more will dive into the world of PPC and SEO.

Regards,
Christian
Wpromote

My agency has been charging clients based on our performance for several years. Usually that’s some percentage of profit directly attributable to our PPC campaign management. The model is hugely successful – clients love it, and it keeps us motivated to work hard and push client profits higher and higher. This is in stark contrast to the motivation of agencies that charge as a percentage of ad spend – they’re usually motivated to increase client cost, and to improve/optimize a PPC campaign just enough that the agency can devote fewer hours to improving it.

Thanks,

David

I have also been pondering this issue. I think essentially internet marketing needs to position itself as part of the marketing mix. Start off by getting some ‘token’ support so they say they are covering this area.

Once we are in the marketing mix we can then begin to demonstrate with results the real power we can deliver. The trouble is Internet Marketing firms seem to miss the boat on selling the sizzle they provide!

you are right but it isnt without precedent.. there are a number of lage agencies that already work like this. There is a conference on this issue in September which i attended last year hosted by some of the larger agencies (New Agency Models 08’ master class run by Centaur).

I think its about finding the right client, managing the issues surrounding measurement of the agreed KPI’s and ensuring transparency. I dont think we are brave enough to make this the only way we will work with clients (yet) but I would like to give it a go.

I’ll let you know how we get on

Cheers

Alex