Today, we’ll dive into the potential pitfalls and what you need to consider when deciding how to use each one. Ready to steer clear of the traps and make the best choices for your business? Let’s get started!
Missed the first part? Here’s Part 1 of this series.
The Hidden Costs of SEO, PPC, and PPL
SEO: The Long Haul Commitment
SEO is a marathon, not a sprint. It takes time to see results, and patience is key. Here are some things to consider:
- Time Investment: SEO requires a consistent effort over months (sometimes even years) to climb up the search rankings. You need to create quality content, build backlinks, and continuously optimize your site.
- Algorithm Changes: Search engines like Google frequently update their algorithms. What works today might not work tomorrow. Staying updated and adapting to these changes is crucial.
- Upfront Costs: While SEO is cheaper in the long run, the initial costs for quality SEO services can be significant. Think of it as an investment that pays off over time.
PPC: Quick Wins at a Cost
The well-known providers in this category are Google Ads (formerly known as Adwords) and Facebook.
PPC can bring instant results, but it comes with its own set of challenges:
- High Costs: The cost per click can be high, especially in competitive industries. If not managed properly, your budget can disappear quickly with little to show for it. This is why so many turn to a PPC professional (like Prospect Genius) to avoid lighting their money on fire.
- Continuous Spending: As soon as you stop paying, the traffic stops. There’s no lasting value once you turn off your ads.
- Click Fraud: Sometimes, your competitors might click on your ads just to drain your budget. While there are measures to prevent this, it’s a risk you need to be aware of.
Pay-Per-Lead: The Easy but Risky Option
The well-known providers in this category are HomeAdvisor and Angi (formerly known as ServiceMagic and Angie’s List.)
PPL might seem like a quick fix, but be cautious:
- Shared Leads: Often, the leads you buy are also sold to other businesses. This means you’re competing with others for the same potential customer.
- Quality of Leads: Not all leads are created equal. You might end up paying for leads that are not relevant to your services, are already hours or even days old, or are difficult to convert.
- Lack of Control: You’re at the mercy of the lead provider. If they decide to change the terms or raise prices, you have little say in the matter.
- Race to the Bottom: Chasing these shared leads often turns into a “race to the bottom” as it devolves into a cutthroat race to be the lowest-priced option.
IMPORTANT: Aligning Incentives for Success
SEO: Partnering for the Long Term
When you invest in SEO, you and your SEO provider share a common goal: driving organic traffic to your site. This alignment means both parties succeed together. Your SEO provider has every incentive to bring you quality traffic because their success depends on yours.
PPC: Careful Management Needed
With PPC, the incentives are clear: you pay for every click. However, it’s crucial to have a skilled manager who can optimize your campaigns, target the right audience, and ensure you’re not wasting money on irrelevant clicks. Proper management is key to getting the most out of your PPC budget.
A very common billing strategy is to charge the business one flat rate. This means that there’s a black box from which the click budget AND the management budget will be pulled. There’s an inherent incentive with this methodology to ratchet up portion kept by the PPC manager, while cutting into the click budget. They are incentivized to keep as much as possible without you quitting. Be very wary of this billing strategy.
Here at Prospect Genius, we bill for your management fee, and then have Google bill you directly for the clicks. There’s no way for us to cheat in this structure, which is why we do it this way.
Pay-Per-Lead: Misaligned Incentives
Here’s where things get tricky. Lead providers like HomeAdvisor or Angi have a built-in incentive to sell as many leads as possible, even if that’s at the expense of quality. The structure of how this model works incentivizes them to send you leads that don’t quite fit your services, forcing you to dispute charges or waste time and money on unqualified prospects. Worse, they also have an incentive to sell the same lead to multiple companies, making it a race to see who converts it first. Even worse still, they’re incentivized to sell you stale leads that were previously sold to other companies, even if they are already days old.
Building Lasting Value
SEO: Your Digital Asset
SEO is an investment in your business’s future. The content you create, the backlinks you build, and the optimizations you make all contribute to a growing digital asset that keeps delivering value over time. Even if you stop active SEO efforts, the benefits can linger. Plus, you can take your accumulated value with you to another SEO provider (provided you own the assets) which affords you freedom to pick the best SEO partner at any given time.
PPC: Short-Term Boost
PPC can provide a significant boost, especially for promotions or seasonal offers. But remember, it’s like renting traffic. The moment you stop paying, the traffic stops. It’s great for immediate needs but not for building long-term value. The pricing is determined by auction and so you will get no benefit from long-term use. Your prices will only go up over time.
Pay-Per-Lead: Temporary Fix
PPL can fill gaps and provide immediate leads, but it’s not a sustainable long-term strategy. It’s like constantly buying plants instead of growing your own garden. You get the instant result, but there’s no lasting value.
The Takeaway
When deciding how to use SEO, PPC, and PPL, keep these considerations in mind:
- SEO: Think long-term. It’s an investment in your business’s future and brand.
- PPC: Use it strategically for quick wins and short-term needs.
- PPL: Be cautious. It can be a quick fix but often comes with hidden costs and risks.
At Prospect Genius, we believe in building lasting value through smart, strategic marketing. We focus on SEO to create a strong foundation for your online presence, supported by PPC and social media marketing as needed. Stay tuned for our next post, where we’ll explore why buying leads might be the worst option for a long-term strategy. Until then, keep growing and glowing!
We hope this helps you navigate the potential pitfalls of SEO, PPC, and PPL. If you have any questions or need guidance, feel free to reach out to us at Prospect Genius. We’re here to help your business thrive!
