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Chat Session
The Use of CPC/CPA Models for SEO
Companies
Led by Barry Lloyd with MakeMeTop.co.uk and
Mark Garwell
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November 20, 2002
Conducted by
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10:54:54 mark g Barry what do you think of the new
AV? 10:55:41 makemetop I'm actually getting
traffic from AV since they started adding sites from Yahoo's New Sites page
within 24 hours. It is faster too. 10:56:06 mark
g I like the new design it's far better than the old portal model don't you
think 10:56:13 makemetop What do you think about
Inktomi's Web Search 9 launched today? 10:57:03
makemetop Yes the AV design is much more back to basics - and I think/hope the
new INK might win them some clients back. 10:57:22 mark g Ink has taken quite a beating this year
10:57:57 mark g it would be nice to have a spread of search
engines 10:58:00 makemetop Yes - something will
happen soon - a have heard some informed rumours! 11:01:32 mark g Barry is one of the very best SEOs in the
UK 11:01:36 makemetop Hi everyone - would you
like me to start with a bit of background on the subject?
11:01:46 shermanhu yes please 11:02:24 makemetop OK - a bit of history - and yes - ditch the
intro - it will make me blush! 11:02:37 makemetop
When MakeMeTop first started providing professional SEO services as
11:02:55 makemetop a company in 1999, we found it hard to
create a model which was 11:03:08 makemetop
attractive to customers. 11:03:22 makemetop Few
had any real understanding of the 11:03:35
makemetop benefits of search engine marketing and we didn't really
understand 11:03:51 makemetop what our work was
really worth! So we undervalued ourselves, 11:04:12 makemetop charged what our work was really worth! So we
undervalued ourselves, 11:04:31 makemetop After
about a year and having 11:04:43 makemetop nudged
our prices higher and higher with no real downturn in
11:05:00 makemetop business - we went the whole-hog and
decided not to accept any work 11:05:14 makemetop
unless the client signed up for a year and the annual contract
11:05:26 makemetop produced a minimum of $5000 revenue. At
end of 2000 when paid 11:05:37 makemetop
inclusion, paid reviews and PPC really started becoming a part of
11:05:48 makemetop the SEM mix we doubled our prices again -
and waited for the 11:06:02 makemetop fallout. It
didn't really happen. Sure, we lost smaller enquirers
11:06:12 makemetop but we gained business from larger
organisations. However, by the 11:06:24 makemetop
end of 2001 we recognised that unless we were giving clients an
11:06:33 makemetop excellent return on investment, they were
unlikely to stick with us. 11:06:44 makemetop So,
we began to work closer with clients to ensure that they were
11:06:54 makemetop getting good relevant traffic and (within
the limits of our ability) 11:07:05 makemetop
that it converted to sales. Within a few months, it became apparent
11:07:19 makemetop that the marketing departments of our
clients were working out their 11:07:34 makemetop
cost per visitor and their ROI and comparing it to the costs of both
11:07:45 makemetop banner ads, other forms of on and
off-line marketing and PPC costs 11:08:00
makemetop from Overture. The differences were frightening. On some sites
we 11:08:11 makemetop were driving focused
traffic for fractions of a cent per visitor - 11:08:21 makemetop yet their competitors were willing to pay (in
some cases) several $ 11:08:32 makemetop per
click and still could make money. 11:08:41
makemetop It became obvious to us that we were still undervaluing our
services 11:08:59 makemetop but how to get this
message across? The answer was blindingly simple! 11:09:10 makemetop Paid performance. If you identify the market a
potential client was 11:09:21 makemetop in you
could identify the 'perceived worth' of traffic in that
11:09:32 makemetop market. For example take 'data recovery
services' which is currently 11:09:44 makemetop
over $10 per click on Overture to be in the top 3. How much would it
11:09:57 makemetop be worth to someone in that industry to
have top 10 listings on the 11:10:08 makemetop
major SEs for that and similar terms relating to that industry? The
11:10:19 makemetop answer was around $1.00. The sales pitch
was simple - instead of 11:10:30 makemetop paying
a $3,000 set-up fee which covers the first 3 month's services
11:10:39 makemetop why not use our paid-performance plan.
You give us a deposit of $1K 11:10:54 makemetop
which is fully applied against click-throughs and we charge you $1
11:11:05 makemetop per unique relevant visitor. Traffic you
get going directly to your 11:11:17 makemetop
website is not charged for - only traffic we generate on a separate
11:11:31 makemetop website - you the client can see the
results in real-time - and you 11:11:43 makemetop
get charged nothing further until your click allowance is used up.
11:11:54 makemetop If it is not used up within 3 months -
you are entitled to your 11:12:05 makemetop
unused element of the deposit to be returned. 11:12:16 makemetop The client nearly bit our hand off. They have
done well out of it 11:12:26 makemetop and so
have we - earning 4 times what we would have charged on our
11:12:35 makemetop most expensive plan.
11:12:44 makemetop Since then, this has been a standard part
of our sales pitch 11:12:55 makemetop (although
the number of $1 per click deals is low) - average per
11:13:07 makemetop click price is 22 cents and over 60% of
our sales come from this 11:13:19 makemetop
method - yet revenues have tripled and profitability has soared.
11:13:31 makemetop Due to the growth in recognition of the
PPC engines (who still have 11:13:42 makemetop a
part to play in our SEM strategy) this method removes the sense of
11:13:51 makemetop distrust that there could be when selling
SEO services and can 11:14:05 makemetop provide a
method of marketing which can be beneficial to both the
11:14:13 makemetop client and the SEO company.
11:14:32 makemetop Well, that's the end of the background -
now for the questions :) 11:14:36 mark g dynamite
stuff, questions everyone? 11:14:52 shermanhu All
visitors are logged through a special domain specifically set up for you by us
where you have full access to the referral logs in real time to make sure that
the traffic generated is applicable to your site, and the phrases used are
relevant to your market and services. 11:15:04
shermanhu that's on your site - how do you set that up?
11:15:13 shermanhu a separate sub domain of your main
site? 11:15:37 makemetop Correct - we are in
essence selling traffic. A completely separate and visible domain is
created. 11:16:08 mark g that complies with the
normal SEO rules, correct? 11:16:22 makemetop We
don't use sub-domains but will call up the client order-form, contact data or
perhaps ordering engine. 11:16:37 shermanhu so if
I'm thinking straight...you would set up another site, related to the clients'
domain or industry 11:17:03 shermanhu and all
traffic you generate go through this domain, and the client can then track it
effectively and accurately? 11:17:08 makemetop
Absolutely. In order to do a decent job you need to have an on-theme site with
the client contact details 11:17:15 shermanhu
that makes sense! 11:17:19 mark g so that would
involve the expense of Yahoo, Looksmart, Inktomi etc hence the set up
cost? 11:17:43 makemetop and everything is
tracked through this site. The site has to be suitable for DMOZ
11:17:50 makemetop Yahoo etc., etc.
11:18:08 mark g You mentioned the mistrust of clients when
pitching SEO to them, this is a very real problem for a lot of us
11:18:24 mark g and one many of us wrestle with every
day 11:18:31 makemetop Correct, we ask for the
deposit to cover the initial costs of paid reviews, spidering etc.
11:18:33 mark g this is an ideal solution
11:19:10 shermanhu Barry, how do you determine the cost per
visitor? which tools to determine value? overture? etc
11:19:19 mark g good question 11:19:42 makemetop Overture is very helpful - we look at the most
important key phrase price 11:20:01 makemetop
then look at the secondary phrases to give an overall average value of the
traffic 11:20:25 makemetop Obviously this is
significantly less than the top Overture price. 11:20:33 mark g others resources you use?
11:20:37 mark g espotting? 11:20:48 makemetop We also have to gauge traffic - it isn't worth
doing this plan for an area where there 11:20:56
makemetop is no real volume. 11:21:16 makemetop
Yes, Espotting as well in the UK can give a great indication - so does
AdWords 11:21:24 shermanhu so lets say its $3 for
the VIP phrase, and $2 for the secondary phrase, is the value then 3+2=5/2=2.5
per visitor? 11:21:36 shermanhu in
general? 11:21:56 makemetop In that case I would
probably pitch at $1.50 to make it a no brainer for the client!
11:22:16 mark g that's a big difference though than
1.50 11:22:27 shermanhu okay, because you know
you would win with the traffic anyway right? 11:22:34 makemetop Exactly. 11:23:02
makemetop Another example with crazy bidding in the UK was serviced
offices 11:23:33 makemetop Bids were running at
£25/$40 per click - I got the deal at £2/$3 which was way
lower 11:23:44 mark g is the take up mostly high
traffic sites that already do some form of SEM? 11:23:55 makemetop but the client signed for a year with a ceiling
of £7.5K per month. I'll have that :) 11:24:40 shermanhu do you have a set number of key phrases you
agree on, like 10, 20 etc...how do you work this out with a client, I can see a
client of mine having many competitive phrases for his site
11:24:42 makemetop No - most companies are aware of SEM but
haven't done anything in the past. 11:25:22
makemetop We do it on the basis of 'key themes' rather than particular phrases.
We select a number 11:25:27 shermanhu or is it
based on dollar value they want to invest per month like your previous
example? 11:25:45 makemetop of competitive
phrases that we base the figure we charge on. 11:26:10 makemetop We only have 2 clients who have put on a
ceiling - most want the traffic. 11:26:34
makemetop Obviously, it has to be good traffic or the deal fails at the first
hurdle. 11:27:03 makemetop Touch wood, apart from
a bit of fine tuning in the first month we really have never
11:27:20 makemetop had any queries or complaints - they love
it. No ranking reports either :) 11:27:56
shermanhu any "best practices" advice for a seo starting out with this strategy
for clients...to avoid the possible pitfalls? 11:28:31 makemetop Like all things - don't bite off more than you
can chew! 11:28:57 makemetop Judge the type of
client you are dealing with and their ability to pay!
11:29:21 makemetop The deposit we ask for often doesn't
cover the actual costs incurred in building a good
11:29:43 makemetop site which we know will convert well for
the client - let alone cover the costs of the SEs 11:30:05 diego So for a given domain / client, how many pages are
you setting up for them (i.e. how much time are you investing)?
11:30:39 makemetop It really depends on the area you are in
- a low PPC rate often means you need a broader 11:31:00 makemetop spread of terms. A high one means often a more
focused site. 11:31:17 makemetop An average site
is probably 10-15 pages. 11:31:39 mark g where
does the content come from? 11:31:43 makemetop
However I'm just starting on a car hire site which will be targeting major
airports 11:31:54 makemetop which will be around
150 pages! 11:32:32 makemetop Usually it is based
on information on the client site - but re-written to prevent dupe
11:32:50 makemetop filters kicking in. Often the client has
dynamic content which has not been indexed 11:33:13 makemetop in any case so this is quite simple to do.
Sometimes we just start from scratch. 11:33:21
makemetop We did on the data recovery site. 11:33:50 mark g do you give the clients access to your web
stats? 11:34:21 makemetop Absolutely, they have
full access to real time figures with the ability to check
referrals. 11:34:44 katja if I understand
correctly, you own the domain and the site that you set up for the
client 11:35:08 katja so if the client terminates
the contract he loses all the traffic coming from you
11:35:10 makemetop Correct - a contract period is entered
into whereby we agree that this is for the sole 11:35:24 makemetop use of the client for the defined
period. 11:35:49 makemetop We also undertake that
if the contract is terminated all references to the client will
11:36:08 makemetop be removed - and they have the option to
purchase the domain - though not the content. 11:36:24 katja Do you link to client's original site at all or
this is really a totally separate issue 11:36:43
makemetop Yes - we are selling traffic. In essence we are setting up an
affiliate deal with the client. 11:37:10 katja
How do you get around with DMOZ? 11:37:19
makemetop It depends on the type of site. Take travel, we would probably call
the agents booking engine within 11:37:32
makemetop the site. 11:37:58 makemetop On other
sites it is a pure site but will have the clients 'phone details and e-mail
will 11:38:04 makemetop forward to the
client. 11:38:21 makemetop DMOZ has proved not to
be a problem in most instances. 11:38:37
makemetop 8/10 sites get into DMOZ. 11:38:51
makemetop 100% get into Yahoo :) 11:38:59
shermanhu thanks...Barry, will redirection to the client's original site only
when there is a need/ "call to action" like ordering, subscription etc? And do
you redesign the client's main sites for more effective click stream /
conversions? 11:39:13 shermanhu (if they pay you
of course) 11:39:48 makemetop Yes - a call to
action is the only real interface with the client's site and we do
11:40:08 makemetop work with the client to increase their
revenue stream through usability issues if we can!
11:40:28 makemetop We need this to work for them for obvious
reasons! 11:40:41 diego Getting back to the web
stats, do you do it in-house or use a service like http://www.hitslink.com/ for
the client to access? 11:41:19 makemetop In the
main we use an SSI script which we have in-house which gives very accurate
data. 11:41:44 makemetop Some clients prefer to
run with 3rd part software like hitslink and we don't have a problem with that
either. 11:42:30 katja 2 clients approached me
recently- they are just starting and their budget for any kind of promotion is
very low. 11:42:55 makemetop We prefer our script
in that it is easier to strip out repeat visits whereas we find hitslink is not
quite as good 11:43:06 katja Can for example I
just start charging them a certain amount per visitor without setting up a
budget with them 11:43:19 makemetop at
identifying unique visitors. 11:43:38 makemetop
Yes, katja. We have managed to bring on clients who are very nervous about SEO
spend 11:43:50 katja can this backfire? Any
experience on this? 11:44:16 makemetop on a PPC
basis who have increased their spend and spread as their confidence
grew. 11:44:49 makemetop I think we have been
lucky, so far. You really have to assess each client. Some just
aren't 11:45:17 katja What do you do with domain
names- all the good one seem to be taken already 11:45:26 makemetop going to get a lot of traffic in their market
niche. Some can't sell - either way you lose 11:45:52 makemetop We're in the UK :) Lots of .co.uk domains
around! 11:46:25 makemetop Seriously, you have to
be a little inventive without doing the
spammy-spam-keywords-more-here.com 11:46:45 mark
g they are getting tiresome aren't they? 11:47:00
makemetop I'm still surprised at what is available - I managed to get
hospitality-management-college.com 11:47:18
makemetop for a hospitality management college (their main keyword) last
week! 11:47:51 mark g shermanhu you're
next 11:48:01 shermanhu thanks...Barry, let's say
you have a client who desires to spend $5k per month, and you deliver more than
enough to match that dollar value...how do you stop the traffic flow, if its
let's say paid inclusions, but not through PPC? Any pull the plug
examples? 11:48:58 makemetop It is easy enough on
PFI - you can suspend traffic. Google is the real problem!
11:49:25 makemetop In reality, you can get a good indication
of what is about to transpire and I've not had 11:49:41 shermanhu sorry for sounding ignorant, how do you suspend
it? 11:49:46 makemetop anyone fail to increase
their ceiling. 11:49:56 shermanhu lol, that's a
good thing - refusing traffic! 11:50:17 makemetop
Certainly on PT and Ineedhits (for Teoma) you have a suspend button for a
URL. 11:51:36 katja Any complaints that the
traffic doesn't convert to sales the way the clients wants?
11:51:58 makemetop We try and judge if that is likely to
happen before we take on the contract. 11:52:15
makemetop Sometimes we have to be brutal and tell them - we can get you the
traffic but you# 11:52:46 makemetop won't sell
anything. We make it very clear that this is a partnership and we will
do 11:53:09 makemetop everything we can to advise
the client - but we can't close the sale - that is their job.
11:53:32 makemetop In the main, the message gets through and
they look towards their own site/business 11:53:43 katja What would this kind of contract look
like? 11:53:53 makemetop to see where they are
falling down - not us. You have to make this all clear at the outset
though. 11:54:28 makemetop e-mail me and I'll
send a draft or I can give it to Mark for you all to look at.
11:54:32 journey ?Are your services priced to compete with
the trusted feed programs from the major engines that will index problem
pages? 11:55:07 makemetop Not really, though we
do use trusted feed in certain areas. People tend to come to
11:55:17 shermanhu I'd like to see that contract too, if you
don't mind 11:55:37 makemetop come to us for
terms which are likely to be buried under directory listings or are
pretty 11:55:48 makemetop competitive.
11:56:05 diego ditto on the contract. Also, so you really
don't ever need to modify the client's site do you?
11:56:15 makemetop We do compete with L$ type listings
though and we are not wildly out on the rest. 11:56:57 makemetop No, we rarely touch the client site. If we do,
it is subject to a separate contract. 11:57:16
makemetop Nor do we charge for any traffic the client gets to their own site
through their own SEO 11:57:25 makemetop
activities. 11:58:18 diego What is the average
cost per click that you can charge clients? 11:58:57 makemetop It averages around 25 cents. Lowest is 15 cents
- highest is over $2.00 11:59:51 goodseed What is
the email we can contact you at? 12:00:06
makemetop barry 12:00:22 mark g
see Barry's site www.makemetop.co.uk
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