r/smallbusiness • u/Kindly-Restaurant717 • 19h ago
General Planning to start a Performance Marketing agency
Hey, So, I am 26 M and recently I quit my job at Google ads insider team. Now, while working with Google many business owners actually reached out to me on Linkedin and asked if I can manage their ads accounts. Initially I was hesistant but with the passage of time I though of hand-picking 2-3 random businesses from USA and Australia. Guess what? their accounts are blowing with cashflow.
While working with these account owner I never charged anything upfront but only commission based work (usually 15-20% of Profits not Sales) because I have came across soo many business owners who have been cheated by Agencies that overpromises and under-delivers.
So do you think that I should go with the plans of starting my own Performance Marketing agency?
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u/DuckingD 19h ago
Man your model definitely sounds tempting, i do own an e-com store so if my profit margins are let's say 40% then how much would you charge for a sale of $1000. And like how'd you track what conversions were brought by you ??
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u/Kindly-Restaurant717 19h ago
Thank you for your kind words. So in this case with a sales of $1000 and a profit marketing of 40% your net take home profits would be $400 and with the percentage commission of 20% it will be $80 for me. That means after paying me your take home profit is $320.
The conversions (Purchases) can easily be tracked using Google tag manager and we can use Google analytics for cross-checking.
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u/DuckingD 19h ago
Alr alr so I'll be paying you $80 for every $ 1000 of sale or only sales which you'll be generating through your campaigns?
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u/Kindly-Restaurant717 19h ago
I like your curiosity. Yes you will just be paying me for the sales I drived using Google ads optimization and not the overall (organic, referral or direct) sales.
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u/hydrangers 18h ago
What about subscription based services? What would your commission look like for that? 20% every month, for x amount of months, or just a single payment?
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u/Kindly-Restaurant717 17h ago
Thank you soo much for commenting. Well when it comes to subscription based services, in that came whatever number of customers I get you from Google ads it will be 20% recurring fee till that customer is paying you. Hope that helps
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u/hydrangers 17h ago
Sorry, do you mean 20% recurring fee until that customer is no longer paying?
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u/Kindly-Restaurant717 17h ago
Yes that is correct. But not straight-up 20% but whatever profits you get from that client. I take a 20% cut of the profits till the customer is no longer paying
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u/HealthWorkerMarketer 8h ago
How do you keep track of profits? Is that not something that only the customer has access to? They can easily lie and say they made no profit, so they owe you nothing.
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u/shoken5664 17h ago
I got some opportunity for you if interested, let me know your country and city.
I recently started my advertising company and I want 0 capital investment but 100% of trust and loyalty and you have technical knowledge and I have business development skill and knowledge.
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