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The Before & After Of Customer Service Outsource Industry
The Before & After Of Customer Service Outsource Industry
A blog banner by Magellan Solutions for The Only Answering Service Comparison You Will Need (2021)
The Only Answering Service Comparison You Will Need (2021)

A Guide For 2021 Pay Per Sale Telemarketing

A Guide For 2021 Pay Per Sale Telemarketing

A Guide For 2021 Pay Per Sale Telemarketing

Finding Ways For A Pay Per Lead To Work

Pay per sale is sometimes addressed as cost per call leads. But in telemarketing, we refer to it as pay per lead telemarketing. It is a marketing process that pays the owner or publisher of a Website. It is based on the number of sales that are generated from an advertisement. Under this agreement, the advertiser only has to pay for sales generated by the site based upon a prior agreed-upon commission rate. 

While the intentions of using a pay for performance telemarketing model are usually good, there are several reasons why it doesn’t work well for outsourced sales. 

The first is in regards to the cost of resources. Let’s take cold callers outsourcing for example. They are an extremely expensive resource. They can also require a lot of training before they can become effective. If everyone is in agreement that cold callers are valuable resources, why would an outsourcer agree to invest in them? There will not always be a guarantee of return on that investment. From a business perspective, it may not make sense. 

Furthermore, the pay per sale puts the focus on short-term goals. There is no reason to think past hitting numbers. Thus, a pay-for-performance sales rep is focused on his short-term goals rather than your long-term success.

So how do Magellan Solutions make this work?

Online advertising

Many independent publishers or Website owners include pay-per-sale advertising on their sites. When a user clicks on an advertisement and makes a purchase, the Website owner receives either a flat fee or a percentage of the overall sale.

URL tracking

PPS uses URL tracking to identify the publisher or owner of a site. When an ad is clicked a unique URL is used that indicates to the advertiser the source of the traffic.

Advertiser & publisher alignment

Differing from other advertising models, PPS aligns the interests of both advertiser and publisher in seeking to reach larger audiences and sell more products. While traditional advertising pricing is not tied to sales, PPS motivates all parties to participate in marketing.

Setting a budget

Before jumping into PPS, from a business perspective, it is important to set a budget for how much you’re willing to spend daily.

There is no definite figure that companies follow.

While you will pay your lead generator somewhere between $25 and $30/hour depending on their level of skill and experience, you also have to consider:

In-house – $38/HR
Sales commission 15% of salary $7,350
Superannuation 9.50% $4,900
Compensation 5% $2,450
Payroll tax 5.45% $2,670
*The following are added on because with an outsourced resource, you do not pay for sick leave or holiday time.
Sick leave 5 days per year $937
Holiday pay 4 weeks per year $3,750
Public Holidays 13 per year $2,438
Outsourcing – $10/HR
Recruitment $5,000 per year
Telephone calls $30 per week $1,560 per year
Training, management & supervision $12,899 (allowing 1 hour/day)
Other overheads $1,040 per year

 

Optimization and sign-ups

Through Google Adwords, analytics, merchant center accounts for projects, and testing of e-commerce, you’re able to fully understand the level of optimization utilized and needed.

Expected profit

When taking into account various factors such as the amount of product that is for sale, product type, profit margins, as well as the median price of products, you’re able to form an educated guess on what may be expected in profit.

This process is the most favorable among advertisers. On the other hand, it’s often the least favorable option among publishers.

 

What you should do before choosing Magellan Solutions for your pay-per-sale advertising

Pay Per Sale (PPS) marketing is incredibly risky for outsourcing companies like us. But we are investing heavily upfront to get the greatest impact in the shortest period of time.

Before locking in your partnership with us:

Ensure you remain profitable.

Not every business needs a PPS campaign. It only makes sense if you have the marketing budget. If you’re selling a low-cost service or product such as handmade earrings at prices that just barely cover your time and the parts, it’ll be harder to justify the PPS spend.

Optimize your sales funnel.

The concept of a digital marketing funnel has changed quite a bit as digital marketing has evolved. This is a marketing strategy designed to attract people to your business, then guide them to conversion. Having a well-defined funnel can save you considerable resources. Furthermore, it will ensure all your marketing efforts are tailored to the various stages in the customer journey.

Track your results.

The only way to make sure that your PPC budget is driving business growth is to track and monitor your results. This means keeping a close eye on key metrics:

  • Cost per click
  • Cost per conversion
  • Click-through rate
  • Total costs
  • Quality Score

Another Option Of PPS Advertising Program

Aside from pay-per-sale-telemarketing, there is another option such as affiliate marketing. This is a popular tactic for businesses. It drives sales and generates significant online revenue. 

There is a survey that shows 81% of brands and 84% of publishers leverage the power of affiliate marketing. It is a statistic that will continue to increase as affiliate marketing spending increases every year in the United States. 

Furthermore, there is a 10.1% increase in affiliate marketing spending in the United States each year. This means that currently, that number has reached $6.8 billion or more.

Then there were also those that happened in 2017 and 2018. 

In March of 2017, Amazon’s affiliate structure changed. They offered rates of 1-10% of product revenue for creators. Thus providing the opportunity for affiliates to dramatically increase their passive income based on the vertical they’re selling on.

Then there is affiliate marketing of Jason Stone (Millionaire Mentor). He was responsible for as much as $7 million in retailer sales just in the months of June and July of 2017.

Meanwhile in 2018, content marketing costs were gauged to be 62% of traditional marketing schemes. This is along with simultaneously generating three times the leads of traditional methods. In fact, 16% of all orders made online can be attributed to the impact of affiliate marketing.

Marketing is not cut and dry. It is not predictable. Rather, it is subject to variables that constantly shift. If you need a pay for performance sales outsourcing partner, we can help you keep up with these constant shifts. 

We can also do trial stages with you as one of the top performing commission only telesales companies.

Contact us today for a quotation.

TALK TO US!

Contact us today for more information.

 

    You can also contact our numbers:


    Toll Free: 1 800 371 6224
    US: +1 650 204 3191

    UK:+44 8082 803 175,
    AU: +61 1800 247 724

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      Magellan Solutions Outsourcing, Inc

      Arrow Divider Footer min

      California – USA (West Coast)

      100 Old Country Road Suite H, Brisbane, CA 94005, United States

      Florida – USA (East Coast)

      1900 South Harbor City Blvd, (East Coast Division) Suite 300 Box 48, Melbourne, FL 32901

      Philippines – APAC

      PB Mezzanine Floor, Summit One Tower 530 Shaw Boulevard, Mandaluyong City, Metro Manila 1552

      Philippines – APAC

      8th floor, Centris Cyberpod 5 ETON Loop A, Diliman, Quezon City, Metro Manila 1103

      US: +1 650 204 3191
      UK: +44 8082 803 175
      AU: +61 1800 247 724
      hello@magellan-solutions.com

      Quick Links

      • About Us
      • Sample Call Recordings
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      • Our BPO & Call Center Facilities
      • Message from the CEO
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      Industries

      • Outsourcing for 3D Service BPO
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