Results Based Pay For Your FB Ads Agency?

0:00hi guys it's ben heath from lead guru and in this video i'm going to talk about whether or not you should accept or you should offer results-based pay if you're a facebook ads agency if you offer facebook advertising services this is something that a lot of your prospects or your clients might want they might want a situation where they only pay you if you're able to deliver them a certain profitability a certain roast something along those lines and i'll talk about whether you should accept it whether you shouldn't what we do all that stuff in this video i think if you're offer facebook ad services or you

0:28run a facebook ads agency this can be really really valuable before i get into that one very quickly ask you to smash that like button and of course subscribe to our channel if you are new and haven't done so already okay so results based pay the advantage is for your clients are obvious who wouldn't want a scenario where they end up paying a uh business that they hire an agency based on the results they're able to achieve it basically means that the client can't lose out so if you offer something like results-based pay you're very likely to find that your conversion rates go up you require a lot

1:03more clients all that sort of stuff but there are also some massive disadvantages to it for you as a facebook ads agency and it's not something that we offer it's not something that i would recommend many facebook ads service providers or facebook ads agencies offer and here's why here's what you need to watch out for when you're running a facebook ad campaign for a business what do you have in your control okay you have to some extent not complete control but to some extent you have the ad creative in your control you have the ad copy in your control the targeting options the various settings within your

1:39facebook ad campaign okay so a bunch of really important stuff and that's what you're being paid for but you don't have control over enough of the elements that go into a successful facebook and instagram ad campaign in order to dedicate resources whether it's your time or you have stuff and it's cost associated with that and only be paid if it works out there's too many factors outside of your control that can go wrong okay um and that might sound if you're not involved with facebook as obviously that might sound like a bit of a cop-out but it absolutely isn't it really isn't there's only so much you can do as a

2:13facebook ads agency if you work with a client that let's say is launching a brand new product and that exact same product or something very very similar can be bought for 30 less on amazon very easily that campaign is very unlikely to succeed now that sounds obvious and logical but you'll be surprised how many prospects how many new clients you might get that have that sort of scenario where their exact product something very similar can be bought on amazon for a fraction of the price okay that's one example um you could have really bad customer feedback scores we've certainly had that with previous clients we're running ads

2:45on facebook campaigns are doing really well but their support this particularly happens with businesses that grow really fast because their support system can't keep up with it they have stock issues you end up where customers um don't receive the product for a few weeks perhaps when they get in touch with support it's a few days and they leave bad feedback scores on facebook which then jeopardizes the advertising efforts okay um and that's a really important and significant thing that will definitely impact the results that you get that's nothing to do with you as a facebook ads agency you've done everything you can so you could enter

3:17into a scenario like that where you're no longer delivering results your os has dropped or maybe even your ability to advertise has been been curtailed on facebook and you're not getting paid even though you've done great work okay that can absolutely happen there are all sorts of things that clients have to sign off on often ad creative perhaps they don't want to go with the ad creator that you want to go for perhaps they're not willing to run the aggressive sale that you know would deliver the great fantastic results it sounds great in theory to offer results-based pay but in practice you just run into so

3:47many issues that are outside of your control you could well start working with a new client um in say february and the best time of year for them to generate sales is say september through december quite a lot of businesses operate like that they you start working with a new client you agree on a let's say a percentage improvement in return on ad spend you run campaigns for the first three months february through to april may and it doesn't work as well as what was done let's say october november time well if those products happen to sell really well september october november december there's very little you're gonna be able

4:24to do to beat those results at other times of year and you may not know that going into it if it's not an industry you've worked with a lot before you might not know the specific nuances a classic another classic example of things that are outside of your control that can massively have an impact on on your results would be things like clients websites not being up to scratch um their landing page is not being quite right you may not have any control over that aspect of their business but a landing page a product page a webinar that converts people these have enormous impacts over the results the row us that you get

4:56from your facebook ad campaigns so i think that as a facebook ad agency you can control what you can control which is the facebook advertising side of things you can control the fact that you can deliver a fantastic facebook ad campaign you can do the work you can put together nice creative you can test new strategies you can find targeting options that work you can write excellent copy and you should be paid based on the work that you do agreed not subjective to what the client thinks agreed upfront because you know the value of what you're able to produce and not based on the results that yes is

5:26partly down to that stuff but also massively dependent on on a whole bunch of other things that i've mentioned that might be outside your control you basically cannot operate a business the successful scalable et cetera if your pay is dependent on so much that is outside your control that is not going to go well um it's not something i'd recommend and you know i'm on i'm on our website right now you know this is our done for you services page and you can see if i sort of scroll down we've got examples of fantastic results right we've got case studies in there there's a whole case study section up

5:59here we've got um screenshots i mean here's a screenshot for a client where we spent 26 000 pounds generated over half a million five hundred and eleven thousand pounds and over a short period of time that's a nineteen point three one rest which is absolutely incredible something that we're very proud of but even though we deliver great results and we demonstrate it through our case studies our testimonials and that's a really important part of acquiring clients we're not comfort well we're not okay with any one client coming along and saying well i can see you can produce those results so how about we do a deal

6:29where you have to achieve a 6x row ass for my business or you don't get paid no because a 6x roast might not be possible even if we put together the best facebook ad campaign that anyone's ever produced if your product or service isn't good enough to do it if your brand isn't aligned right with your target audience it just might not be possible okay if your price point's way off all these things that you don't have control over that can have a big big impact on the success of of your results the only time when i would potentially look into doing a results-based system would be actually there's two scenarios

7:04but one not really i'm gonna go through the first one is if you work with a client for a long time you know you can deliver results and it's been proven and then you come up with some sort of incentive structure where um if you achieve certain results you get paid more that would be okay but you want to have worked with them first to know that what the goals are being set are actually possible that's the first thing the second thing okay would be if you are relatively new you haven't got case studies you haven't got testimonials you haven't worked with many clients you want to gain experience

7:38you will find it easier to get those first few clients if you offer a results-based structure and that might be worth it to get the experience to get the testimonials and things right at the beginning okay now normally i'd recommend working for free for a month or two and then charging or charging very little instead of results based still just i've seen this go wrong so many times but that is an option that you could look into doing right at the beginning because experience and getting clients on board is more important than the revenue you generate okay um that's a that's a a scenario which i wouldn't hate doing

8:12something along those lines but that's not how i set it up now if you say to clients look we're just not willing to offer results-based uh payment structure you can give the reasons that i've given why i've certainly have that conversations with probably what definitely dozens maybe even hundreds of prospects i've said that too what you can say because often they want to align your interests right they want to be like well hang on i want us to be on the same page here i want that if i do well you do well and vice versa which i completely agree with here's how i would recommend your

8:39structure and how we structure it we start with a flat fee okay and then we charge a percentage of the ad spend beyond a certain point so what we say to clients is look if you come on board and you start spending x amount you are only going to increase your ad spend if we're delivering good results it's the only scenario in which someone will scale a campaign right i mean of course so we are highly incentivized to get you the best shots possible because we know if we get you the best results possible you will scale and when you scale we make more money so

9:10it's not results-based pay but it has got an incentive structure we are aligned on our interests and we are going to do whatever we can do to get the best results possible so i think that's a really important thing that you can say and that clients often really like um so yeah so basically don't forget uh don't forget that point because it's a it's a big one and okay before you go a couple of things i want to uh well one thing i want to quickly mention that i haven't talked about youtube channel before and it's specific to this sort of content if you're a facebook ads you say

9:39oh no you're on facebook services so come to my website leadguru.com and then go to um the free resources section and in this free resource section you probably can't see it because i'll be blocking this part by this free research session there's a facebook ads agency mini series right if you click on this you'll see that it's how to build and scale a facebook ads agency it's a completely free mini series um a bunch of free content that you can go through that shows you how to acquire clients how to um price your services proposals how to retain clients how to scale all that sort of stuff

10:12completely free a link will be in the video description like you can either come to the website and find it or there'll be a link in the description of this this video go ahead and click through to that um sign up for that and um yeah i think you'll find that very very useful if you found this video helpful please comment below to let me know comment below if you've got any questions i can't answer all the questions but i certainly do my best and i do get to quite a lot of them subscribe to my channel if you are new and haven't done so already

10:37smash your like on the video and uh yeah i'll talk to you guys soon best of luck with everything bye for now