Archive for September, 2009

SEER is looking for the SEO rookie of the year, you game?

Thursday, September 3rd, 2009

Hi There, SEER Interactive is looking for an SEO ROOKIE to join our team of all stars.

We are fully aware that our most successful SEO team members often came from backgrounds having very little to do with the Internet or search engines. As such we are putting out a call for people who want to break into SEO, feel they would be strong at SEO, but just don’t have the 1-2 years experience or more required to get your foot in the door at most SEO companies.

I’m Wil and I have been doing SEO for 11 years, yes SEO every day for 11 years, and I LOVE IT!!!

When I started in SEO it was all about persistence, it was a NO QUIT attitude, it was knowing the answers were out there, watching youtube videos, reading on forums, going through delicious and blogs like seomoz and search engine watch to find answers to the unknowns. Sometimes I just had to search and join networks to find those answers, and I did.

Someone had to give me a shot with NO experience (here’s the guys who did) so I’m going to give it a shot myself.

SEO is all about persistence, or as I say “tenacity over tenure” as such its time for me to put my money where my mouth is and offer a potential job to a newbie, if you are game, please send your resume. While we are looking for newbies, we are still looking to interview people who are very web savvy, have a passion for the web, love marketing, competition, and numbers.

So newbie, let us tell you why SEER just might be the right place for you:
1 – We’re stable!! This is no fly by night business, we’ve been around for 6 years, and are growing this year!
2 – We were in the top 5 fastest growing companies in the Philadelphia area (Article no longer live) last year
3 – The people here are SMART, you’ll learn a ton, and we want to help you learn it all if you are willing to work your tail off and seek out greatness for yourself and for our clients.
4 – Our mantra is be good, be good to your community, be good to each other and be GREAT to your clients. Here’s JoAnne – taking tape down from painting:

5 – We require you to spend time volunteering monthly, we want to work with great people but not people who are so selfish that they never think about helping others. You can take off any time (including during work hours) to volunteer your time with an organization who needs you help.
6 – We’re open, so open that we have open meetings every month where we share the company performance, there’s only one door in the whole place, we share info down to profits, with all employees, companies ask people to be entrepreneurial, but then don’t give them the whole picture, that’s whack, we aren’t whack.
7 – We are raise and bonus happy, as long as the company is doing well and you are showing a daily desire to be better than you were yesterday, you will do well here.
8 – We stick up for you. Ever had a boss who made you work with a client who treated you like crap? What did that tell you? It probably told you the boss cared more about the $$ than about you. If you are indeed GREAT, we go to the mat for you. While we’re not proud of having to let clients go, if they treat anyone here as anything less than a professional, we will not tolerate that and if you are GREAT, they are going to have to go, you will stay.
9 – We’re anal about how we manage projects, our clients pay us well and as such they deserve a team who will call them multiple times a week, stay late, come in early, and communicate with them every step of the way. YOU MUST HAVE STRONG ATTENTION TO DETAIL and be resourceful, you must know what to do when no one gives you tasks
10 – We have fun, we have season tix to the Phillies (Phillies photo), yes this shot is from our seats, and yes we have tix for the playoffs :)

have done 2 trips to six flags & take off for team volunteer days.

Notice in the picture below, Laura, Crystal and Andrew are having a blast, I am petrified:

11 – We TRUST you, we have no sick days, and to be honest our vacation days are even a bit flexible (I don’t keep track and people don’t abuse that fact), we gave everyone gift cards this year to go take flights on southwest, yes we work hard and people need to recharge, so we bought a gift card for everyone here, many people can do round trip flights with the gift cards we gave to see old friends, family, or take a vacation on our dime!
12 – We HATE losing, we are in a numbers business, and when the numbers aren’t good people here don’t sleep well, it BOTHERS them to no end, and they’ll do everything they can to fix it.
13 – We have LOOOOOOW turnover, we expect greatness and not everyone is cut out for the pace we run at here, but we have had 2 people choose to leave in 4 years, one left to become a programmer and another wanted to get her masters in non-profit, if I have to lose someone that’s a great reason, best of luck Leslie! Hopefully above all else that says something about who SEER is.

So if you are interested, please send in your resume, if you are a total newbie, we’re taking a risk on you, so don’t expect to come here and break the bank in for first 6 months, but also believe it, people have gotten multiple raises here within their first 6 months if they are amazing, so if you believe in yourself go for it, trust us.

Not a newbie? Ok, well you got 1-2 years experience, don’t turn away, we’re game to chatting as well.

For those whom an interview makes sense, expect to receive a website on your interview day to improve from an SEO perspective, yeah we’re a throw you in the fire kinda business.

PPC Profit Calculator – Is Not Using an Agency Costing You Time and Money? Plug in the Numbers and See!

Tuesday, September 1st, 2009

One legitimate concern that potential PPC clients have when choosing a search firm to manage their PPC, is the agency’s fees. These prospects may be considering managing campaigns themselves and while they may not achieve the same results as an Agency, removing a layer of fees might seem to trump the gains of a seasoned SEM professional.

My colleague Joanne, recently wrote a blog on helping e-commerce clients determine if they are profitable when they include SEER’s fees. She uses her calculator and the method she describes in her blog for the e-commerce clients (Page currently not available) she manages and in doing so she helps our client sleep better at night because they know even with SEER’s fees and their variable costs she is able to achieve increasing profitability.

The SEER team has recently enhanced this calculator to help both lead generation clients and e commerce clients determine profitability when all cost and fees are taken into consideration. The excel file is linked here, but will eventually be made into a widget on the SEER site.

The goal of this calculator is to help clients and potential clients determine with all fees included whether or not their paid search campaign is returning a profit.

To use this calculator you need the following information:

  1. Monthly Budget
  2. Set Up Fee (if applicable)
  3. Commission or Flat Fee paid to the Agency
  4. The average CPC for the account
  5. The Lead to Conversion rate (leads/clicks)
  6. Sales to Lead Ratio — for e commerce clients this will be 100%. For lead generation clients knowing this ratio is essential for evaluating the profitability of the account
  7. Average Order Value
  8. Variable Cost or Profit Margin

All other fields can be calculated with this given information.

  1. Profit/Sale = Average Order Value — Average Variable Cost
  2. Clicks = Total Budget/ CPC
  3. Leads = Leads to Conversion Rate * Clicks
  4. Sales = Sales to Lead Ratio * Leads
  5. Revenue = Sales * Profit per Sale
  6. Monthly Fees to Agency = Flat Fee or Commission + “Setup Fee/12”
  7. Total Cost = Monthly Budget + Cost to Agency + Variable Cost
  8. Profit = Revenue(E) — Total Cost(G)

Let’s look at how this calculator can be used, with the following assumptions held constant.

  1. Sales to Lead ratio = 25%,
  2. Average order value = $3,500
  3. Profit margin = 25% or $2625

Scenario 1: No Agency

Monthly Budget = 5K,
Set Up Fee = 0
Agency Fee = 0
Avg. CPC = $5
Lead Conv. Rate = 3%

Plugging in these assumptions into the calculator, as seen below the client is doing ok and able to generate $1,562 in profit a month on his own without an agency.

PPC Calculator - Scenario 1

Scenario 2 No Change in Performance with Agency

Monthly Budget = 5K,
Set Up Fee = $6,000
Agency Fee = $2,000 Flat fee
Avg. CPC = $5
Lead Conv. Rate = 3%

In the example below you can see that total profit for the month fell from $1,562 to $63 by adding agency fees with no improvement in performance. The conclusion from this example is that an agency better increase performance to justify their fees.

But as the following examples will demonstrate, if you were to choose a strong agency that can increase performance metrics, the results will improve your profitability.
PPC Calc. Scenario 2

Scenario 3: Agency with Improvement in Conversion Rate

Monthly Budget = 5K,
Avg. CPC = $5
Lead Conv. Rate from 3% to 5%
Agency Fees = 1k Flat fee
Set Up Fee = 6K

This example illustrates how improving the lead to conversion ratio from 3% to 5% can change the profitability.

How can an agency increase conversion rate? At the onset, they will help you re-organize the account and will do extensive keyword research to identify keywords that have the potential to convert. They will then make sure that they organize these keywords into tightly themed groups, with ad copy that speaks to the keywords that you are targeting. They will also work with you to find the best pages to land these clicks on or recommend that landing pages be developed to target these keywords directly and ensure their ad copy includes any offers or benefits emphasized on the landing page.

Also, a strong agency will watch your account like a hawk and identify any keywords that have very low conversion rates using Google tracking or high bounce rates using Google Analytics. They may lower bids on these terms, or suggest a new landing page, or even eliminate these terms so more of your budget is available for the higher converting terms. Additionally, they will use Search Query reports to eliminate irrelevant terms you are being matched to by adding negatives to your account. Combined, this continual tweaking should influence your conversion rate in a positive way. They may also suggest landing page improvements and test these changes using the website optimizer to help develop the page that has the highest overall conversion rate.

These steps will not only impact your conversion rate, but may also increase your Quality Score, which in turn will influence the CPC you will have to pay for any given position. In other words, with a better quality score you may be paying less than your competitor for a better position. The impacts of quality score are not factored into the calculator example below, but is just another reason why not using an agency may be costing you money.

Plugging in the increase in conversion rate into the PPC calculator, illustrates how increasing your conversion rate, which results in more leads, which results in more PROFITABLE sales, may take your monthly profitability from $1,563 in our original non agency scenario to $4,438 with fees included

PPC Calc - Scenario 3

Scenario 4: Agency w/ Improvement in Conversion Rate and Account Expansion

Monthly Budget from 5k to10K,
Avg. CPC = $5
Lead Conv. Rate = 5%
Agency Fees = 1k Flat Fee
Set Up Fee = 6K

Now, in our final scenario your agency not only helps you increase your conversion rate but they also help you expand your campaign which pushes your Monthly Budget to 10K. Again is this realistic? The answer again, is yes VERY. An agency can help you expand into engines you were not using like Yahoo and MSN. This is a no brainer for many clients because if every lead is profitable to you, than the more leads the more profit, so why not expand what you know works in Google into Yahoo and MSN. Additionally, a strong agency should have a plan and set goals on how they plan to profitably expand your account. They should look tirelessly for new keyword ideas, using Google Analytics for what types of terms are working organically. Additionally, they should look at Search Query Reports on a regular basis to find additional terms that you are being matched to with broad matches, which may spur on new keyword recommendations. An agency will help you expand profitably because they will be monitoring the account daily and providing reports on a weekly or bi weekly schedule, which will help them catch quickly what is not working.

Plugging the increase in budget into the PPC calculator, with all other factors remaining constant, illustrates how increasing your budget, which results in more clicks, which results in more leads, which results in more PROFITABLE sales could take your monthly profitability from $1,563 in our original non agency scenario to $10,375, fees included!

PPC Calc - Scenario 4

The next question you may ask, is now that I know all this, why should I use an agency? This question could be its own blog and there has been a lot written on this topic. Below are some posts that help answer this question.

  1. Why You Need to Outsource
  2. Search Engine Watch Forum – Outsource PPC
  3. Why Outsource your PPC Advertising (Page currently not available)

Now, even if you choose the right agency these performance enhancements cannot be expected over night. Typically it takes about three months of tweaking and testing for an agency to achieve the efficiencies that were described in this post. Moreover, not every client is the same, so expanding the account without your CPA increasing dramatically may not be possible in your industry. However, the PPC calculator helps you see what type of improvements an agency needs to make to cover their fees. As seen in the scenarios explained, in many instances you cannot afford not to test working with an agency. Not only will you save time by not having to manage the account yourself, but you may also be missing out on huge profits that a seasoned professional can help you achieve.

PPC Profit Calculator – Is Not Using an Agency Costing You Time and Money? Plug in the Numbers and See!

Tuesday, September 1st, 2009

One legitimate concern that potential PPC clients have when choosing a search firm to manage their PPC, is the agency’s fees. These prospects may be considering managing campaigns themselves and while they may not achieve the same results as an Agency, removing a layer of fees might seem to trump the gains of a seasoned SEM professional.

My colleague Joanne, recently wrote a blog on helping e-commerce clients determine if they are profitable when they include SEER’s fees. She uses her calculator and the method she describes in her blog for the e-commerce clients (Page currently not available) she manages and in doing so she helps our client sleep better at night because they know even with SEER’s fees and their variable costs she is able to achieve increasing profitability.

The SEER team has recently enhanced this calculator to help both lead generation clients and e commerce clients determine profitability when all cost and fees are taken into consideration. The excel file is linked here, but will eventually be made into a widget on the SEER site.

The goal of this calculator is to help clients and potential clients determine with all fees included whether or not their paid search campaign is returning a profit.

To use this calculator you need the following information:

  1. Monthly Budget
  2. Set Up Fee (if applicable)
  3. Commission or Flat Fee paid to the Agency
  4. The average CPC for the account
  5. The Lead to Conversion rate (leads/clicks)
  6. Sales to Lead Ratio – for e commerce clients this will be 100%. For lead generation clients knowing this ratio is essential for evaluating the profitability of the account
  7. Average Order Value
  8. Variable Cost or Profit Margin

All other fields can be calculated with this given information.

  1. Profit/Sale = Average Order Value – Average Variable Cost
  2. Clicks = Total Budget/ CPC
  3. Leads = Leads to Conversion Rate * Clicks
  4. Sales = Sales to Lead Ratio * Leads
  5. Revenue = Sales * Profit per Sale
  6. Monthly Fees to Agency = Flat Fee or Commission + “Setup Fee/12”
  7. Total Cost = Monthly Budget + Cost to Agency + Variable Cost
  8. Profit = Revenue(E) – Total Cost(G)

Let’s look at how this calculator can be used, with the following assumptions held constant.

  1. Sales to Lead ratio = 25%,
  2. Average order value = $3,500
  3. Profit margin = 25% or $2625

Scenario 1: No Agency

Monthly Budget = 5K,
Set Up Fee = 0
Agency Fee = 0
Avg. CPC = $5
Lead Conv. Rate = 3%

Plugging in these assumptions into the calculator, as seen below the client is doing ok and able to generate $1,562 in profit a month on his own without an agency.

PPC Calculator - Scenario 1

Scenario 2 No Change in Performance with Agency

Monthly Budget = 5K,
Set Up Fee = $6,000
Agency Fee = $2,000 Flat fee
Avg. CPC = $5
Lead Conv. Rate = 3%

In the example below you can see that total profit for the month fell from $1,562 to $63 by adding agency fees with no improvement in performance. The conclusion from this example is that an agency better increase performance to justify their fees.

But as the following examples will demonstrate, if you were to choose a strong agency that can increase performance metrics, the results will improve your profitability.
PPC Calc. Scenario 2

Scenario 3: Agency with Improvement in Conversion Rate

Monthly Budget = 5K,
Avg. CPC = $5
Lead Conv. Rate from 3% to 5%
Agency Fees = 1k Flat fee
Set Up Fee = 6K

This example illustrates how improving the lead to conversion ratio from 3% to 5% can change the profitability.

How can an agency increase conversion rate? At the onset, they will help you re-organize the account and will do extensive keyword research to identify keywords that have the potential to convert. They will then make sure that they organize these keywords into tightly themed groups, with ad copy that speaks to the keywords that you are targeting. They will also work with you to find the best pages to land these clicks on or recommend that landing pages be developed to target these keywords directly and ensure their ad copy includes any offers or benefits emphasized on the landing page.

Also, a strong agency will watch your account like a hawk and identify any keywords that have very low conversion rates using Google tracking or high bounce rates using Google Analytics. They may lower bids on these terms, or suggest a new landing page, or even eliminate these terms so more of your budget is available for the higher converting terms. Additionally, they will use Search Query reports to eliminate irrelevant terms you are being matched to by adding negatives to your account. Combined, this continual tweaking should influence your conversion rate in a positive way. They may also suggest landing page improvements and test these changes using the website optimizer to help develop the page that has the highest overall conversion rate.

These steps will not only impact your conversion rate, but may also increase your Quality Score, which in turn will influence the CPC you will have to pay for any given position. In other words, with a better quality score you may be paying less than your competitor for a better position. The impacts of quality score are not factored into the calculator example below, but is just another reason why not using an agency may be costing you money.

Plugging in the increase in conversion rate into the PPC calculator, illustrates how increasing your conversion rate, which results in more leads, which results in more PROFITABLE sales, may take your monthly profitability from $1,563 in our original non agency scenario to $4,438 with fees included

PPC Calc - Scenario 3

Scenario 4: Agency w/ Improvement in Conversion Rate and Account Expansion

Monthly Budget from 5k to10K,
Avg. CPC = $5
Lead Conv. Rate = 5%
Agency Fees = 1k Flat Fee
Set Up Fee = 6K

Now, in our final scenario your agency not only helps you increase your conversion rate but they also help you expand your campaign which pushes your Monthly Budget to 10K. Again is this realistic? The answer again, is yes VERY. An agency can help you expand into engines you were not using like Yahoo and MSN. This is a no brainer for many clients because if every lead is profitable to you, than the more leads the more profit, so why not expand what you know works in Google into Yahoo and MSN. Additionally, a strong agency should have a plan and set goals on how they plan to profitably expand your account. They should look tirelessly for new keyword ideas, using Google Analytics for what types of terms are working organically. Additionally, they should look at Search Query Reports on a regular basis to find additional terms that you are being matched to with broad matches, which may spur on new keyword recommendations. An agency will help you expand profitably because they will be monitoring the account daily and providing reports on a weekly or bi weekly schedule, which will help them catch quickly what is not working.

Plugging the increase in budget into the PPC calculator, with all other factors remaining constant, illustrates how increasing your budget, which results in more clicks, which results in more leads, which results in more PROFITABLE sales could take your monthly profitability from $1,563 in our original non agency scenario to $10,375, fees included!

PPC Calc - Scenario 4

The next question you may ask, is now that I know all this, why should I use an agency? This question could be its own blog and there has been a lot written on this topic. Below are some posts that help answer this question.

  1. Why You Need to Outsource
  2. Search Engine Watch Forum – Outsource PPC
  3. Why Outsource your PPC Advertising (Page currently not available)

Now, even if you choose the right agency these performance enhancements cannot be expected over night. Typically it takes about three months of tweaking and testing for an agency to achieve the efficiencies that were described in this post. Moreover, not every client is the same, so expanding the account without your CPA increasing dramatically may not be possible in your industry. However, the PPC calculator helps you see what type of improvements an agency needs to make to cover their fees. As seen in the scenarios explained, in many instances you cannot afford not to test working with an agency. Not only will you save time by not having to manage the account yourself, but you may also be missing out on huge profits that a seasoned professional can help you achieve.

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