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?
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.
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.
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.
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|
|*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|
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.
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.
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:
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.
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.
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:
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.
Contact us today for more information.
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