If a group of distributors for the same single company want to advertise on Google, they will inevitable get into a PPC bidding war for the base URL.
If the consultants were to manage their own campaigns, then they would compete with others and thus, raise the price of the PPC campaign, the only way to both maximize the effectivenes of the campaign and prevent PPC price increases is to have a neutral 3rd party set up an even rotation of ALL team consultant ads. I’m the one who made the decision to start a candle business so here are my stories.
How It Keeps Going
The key to the COOP is Google’s Adwords Certification status. The certified professional gets to hand out $100, no strings attached Google money called ‘promotional credits’. The Google professional gets no compensation for giving out credits. They are benefits of having passed the stringent (i thought they were fun) Google Adwords Certification track.
The Advertising Cooperative is a term that I coined to describe the pooling of advertising moneys which are then administered by a neutral 3rd party.
To understand the value of an advertising coop, you first need to explore the outcome without this ‘truce’ of sorts amongst the advertisers.
There are only 8-10 main advertising spots available by Google on the first page. As soon as 10 or more people want to advertise on the first page, the price goes up. Further, this starts a cascading effect AGAINST the consultant and prices will continually rise for the keyword, indefinitely, as more consultants compete.
With a coop, only the top 6 spots are sought after. Consultants don’t maintain their own advertising campaign but instead have them administered by a neutral third part who rotates through ALL consultants in the COOP. All consultants then have ads that ROTATE through with each search for that keyword.
Why People Have A Hard Time Copying My Strategy
First you have to become Google certified to get the promotional credits. Then you have to know Ad Copy writing as the public is very fickly and wants to see exact word combinations. Then you have to construct a creditable landing page for all of your ads. Then make it easy for them to buy.
There is a lot of work involved and some is expert-level.
As new consultants experience sales, they can make the decision to re-invest a portion of those moneys into more advertising or keep the profits and stay within the coop.
It should be noted that the Coop does not go after the #1 PPC spot, ever. Secondary ad generation is key to the Internet campaign model to remain solvent at around 5-7 cents ($.05 – $.07) per click. This allows the proper ratio of HITS to SALES. At an average sale amount of $50, the campaign remains solvent and produces a positive profit.
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