We believe the results we generate should determine our reward. The rationale for using a performance-based approach to pricing is based on three key points:

• Aligning incentives ensure a better outcome
• You don’t risk paying for something you don’t get
• We are confident in our ability to deliver value

If just one of these points make sense to you a performance-based pricing model may be right for you.

Setting up the right pricing model will require some considerations – one of these being what you want to achieve with your AdWords campaign. For most of our clients success is measured in sales, leads or profits and therefore they choose to reward us according to how we increase those economic metrics. To give you a better idea of how this can be done you can check out a couple of sample pricing models we are actively using.

There are alternative approaches such as fixed fees, ad spend fees or click-based fees. Each of these approaches have reasons to be used but we have found them to not serve us or our clients as well as a performance-based pricing model.