3 ms·

"but in the long run the cost of using AdGrok will probably average out to about 5 percent of what users spend on AdWords" One of my clients spends about $1000

by keltex 16y ago

"but in the long run the cost of using AdGrok will probably average out to about 5 percent of what users spend on AdWords" One of my clients spends about $1000 per day on adwords. They would never spend $50/day on software like this.

antongm 16y ago
The plan is to charge a flat rate for smaller spends, and do more of an agency, percent-of-spend model for larger accounts. Your buddy with the $1000/month spend would be in the former category, and pay more like $20-$30/month. I can almost guarantee his ROI will be more than 2-3% better with AdGrok, so it would make sense for him to use it.
mceachen 16y ago
We're beta-testing our pricing model at the same time we're beta-testing our product. There's historical evidence in the ad space that people are willing to shell out 15-20% of their spend on agencies. We're shooting for a pricing structure that will make using AdGrok a no-brainer. Our early adopters are finding AdGrok very "sticky" -- they consistently say they are happy that they never need to log into AdWords again.
chime 16y ago
> One of my clients spends about $1000 per day on adwords. They would never spend $50/day on software like this. Assume the human effort/labor isn't part of the equation: $1000 in adwords -> $1001 in sales. $1000 in adwords + $50 AdGrok -> $1052 in sales. Only reason to not pay for AdGrok is if the labor cost increases. If the labor cost decreases, they absolutely should do it.
rlander 16y ago
You're assuming AdGrok is just a frontend to Adwords. I think their platform is much more than that: besides the prettier/easier interface, I imagine its core is based on campaign optimization/management (through ML algorithms) and keyword generation, like kenshoo, clickfuel and clickable. If that's the case, then it is more than worth the 5% comission.
xal 16y ago
1000 a day is actually pretty low. Once you find out what your CPA is and your lifetime customer value you simply look at your profit sheet and write a cheque to google for the full amount if you make a profit within say 10 months. Yes, that's reality. Google takes 100% of profits in exchange for promise of more profits to take 100% of. Yes I want to be in their business rather then mine too.

by keltex 16y ago

antongm 16y ago

The plan is to charge a flat rate for smaller spends, and do more of an agency, percent-of-spend model for larger accounts. Your buddy with the $1000/month spend would be in the former category, and pay more like $20-$30/month. I can almost guarantee his ROI will be more than 2-3% better with AdGrok, so it would make sense for him to use it.

mceachen 16y ago

We're beta-testing our pricing model at the same time we're beta-testing our product. There's historical evidence in the ad space that people are willing to shell out 15-20% of their spend on agencies. We're shooting for a pricing structure that will make using AdGrok a no-brainer. Our early adopters are finding AdGrok very "sticky" -- they consistently say they are happy that they never need to log into AdWords again.

chime 16y ago

> One of my clients spends about $1000 per day on adwords. They would never spend $50/day on software like this. Assume the human effort/labor isn't part of the equation: $1000 in adwords -> $1001 in sales. $1000 in adwords + $50 AdGrok -> $1052 in sales. Only reason to not pay for AdGrok is if the labor cost increases. If the labor cost decreases, they absolutely should do it.

rlander 16y ago

You're assuming AdGrok is just a frontend to Adwords. I think their platform is much more than that: besides the prettier/easier interface, I imagine its core is based on campaign optimization/management (through ML algorithms) and keyword generation, like kenshoo, clickfuel and clickable. If that's the case, then it is more than worth the 5% comission.

xal 16y ago

1000 a day is actually pretty low. Once you find out what your CPA is and your lifetime customer value you simply look at your profit sheet and write a cheque to google for the full amount if you make a profit within say 10 months. Yes, that's reality. Google takes 100% of profits in exchange for promise of more profits to take 100% of. Yes I want to be in their business rather then mine too.