How to set up pay per performance model of marketing

echnique that is used for websites. This type of advertising requires the company doing the advertising to pay a fee based on an action that a visitor to their website takes. One example of pay per performance advertising is pay per click advertising, which requires the merchant to pay a fee every time a person clicks on a link for their website. Another type of pay per performance advertising would be paying a fee for any sale that is made when a person clicks on a link. There are many different types of models of marketing for pay per performance and only you can choose the right model for your company.

Step one:
Choose which company you want to use for your pay per performance advertising. There are quite a few to choose from, such as Overture or Google AdWords. Before deciding on which company you wish to use you should do your research on them to see which one is going to work best for your company.

Step two:
Now you must choose your target key words or phrases. At this point you can revise your company's website to include your target key words or phrases that you have chosen for your pay per performance advertising. But even if you don't you can still increase your traffic because your pay per performance key words or phrases are not tied to the content of your website but are actually tied into the ads you write for your pay per performance model.

Step three:
Here you are going to want to set up a monthly budget for your pay per performance advertising. Once you have reached you maximum amount your advertising for that month will stop, unless you choose to pay more money for future clicks, not all companies have this option. Also keep in mind that this could end up costing quite a bit more money so it is best to stick to your original budget.

Step four:
Understand what fees are involved in pay per performance. When you first set up your account you are going to have a deposit fee that may or may not be refundable. You are also going to be charged a minimum price per click; this price will vary depending on how popular your key word is. The more popular the key word or phrase the higher the price per click is going to be. But remember you want the more popular key words so that you can get placed higher on the list next to the search results.

Pay per performance marketing has other advantages as well. One of the advantages to pay per performance marketing is that it can be set in motion immediately. It used to be that when you ran ads you had to take them to the printers to have them printed and then you had to mail them out, but with pay per performance your ad can be online within an hour of your company winning the bid and paying for it. A second advantage to pay per performance marketing is that you can expand your customer base. Using this type of advertising can provide you with a select target group of internet users, thus increasing your traffic. By using a pay per performance model of marketing you are paying to have your ad viewed by certain groups of people who are searching for what it is you have to offer.

Just remember that in order to make a profit you need to market your company effectively and pay per performance marketing is a great way to get your name out there on a fixed budget.