Why are there no marketing agencies with Cost per Conversion pricing?
Hey everyone.
I've always wondered this. 99% of marketing agencies charge a fee up front for their "services". As a customer you have no idea if they will generate a single sale, or change your life completely. They promise you the world, and you just have to gamble and see what happens. At least 90% (probably more) of them will fail to deliver on their promises.
But the 10%, or 5%, or 1%? (still have yet to find one) that are great at it, especially the small marketing companies just getting started. Why don't anyone offer "cost per conversion" marketing as a method to onboard new clients?
Obviously you'd have to be selective about what companies you work with, and only work with businesses you can actually generate results for. But surely having too many potential clients is good problem to have?
cost per conversion = affiliate, no?
google ads can optimise per goal target, but that takes 1,000's of $ to get the data for even with all the data access they have, you might need to start with a 10k budget.
Essentially it's really expensive .
And the best ones are probably working on affiliate offers.
There you need to attract them not the other way around.
It's also about risk, who takes it and how much, it's a psychological thing just as much as it's a financial thing if not more.
(it's also very complicated to implement for new customers, both explaining and the tech inside and agreeing on the details...)
Most agencies are too cautious to go this route. They're not in control of many things that factor into what generates a conversion.
A fair way to price per conversion is to base pricing on the % conversion lift they generate.