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July 12, 2010
  Pay-for-performance—when it’s a no-brainer.

In the graphic design industry we have this lovely thing called a “deliverable”. You know, a tangible “thing” a client can see or sometimes even hold that helps establish the value to the service we deliver. But for other b2b services industries, their deliverable is not quite as tangible. So how do they gain the trust and loyalty of a client? Some are finding success with Pay-for-performance models.

One example of a business that’s having great success with a results-based model is Green Leads. They provide their b2b clients with appointment setting and lead generation. As opposed to paying an outsourced lead gen vendor a monthly service fee–which is basically just an hourly rate with margin added to it–Green Leads only gets paid when they deliver a qualified meeting with the prospects their clients are targeting. “Lead gen programs are all about return on investment. With pay for performance appointment setting, our clients know exactly what the ROI of the program is going to be. They spend $X, they get Y meetings,” says Linda Flanagan, COO of Green Leads. “There is never a question of ‘what did you do for me lately'”.

Another area that benefits from a pay-for-performance model is SEO consulting. The traditional model for providing SEO consulting includes substantial up-front fees, without any direct incentive for the vendor to produce results. Because there are no performance guarantees, this model can leave clients feeling like they have no guarantee of any ROI. But BlackFin Media—Stormship’s lead technology partner—does it differently. “We measure and report the results to our clients, and bill only for the rankings that we achieve on the three major search engines,” says Chris Edwards of BlackFin. “… our team uses safe yet effective techniques to improve your website’s organic search engine rankings relative to your competition, driving targeted traffic to your site every day. Our unique results-based SEO service makes clients feel that they have a vested partner in their SEO campaign, who is motivated to achieve and maintain top rankings.”

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