Pay-Per-Success: Changing the Client-Agency Model

12 OCTOBER 2011 – SMB MONTREAL

Pay-Per-Success: Changing the agency-client modelA social media agency model

100% KPI based compensation

Octavian MihaiRock&Social

Social Media Brunch - Montreal12 October 2011

OCTAVIAN MIHAI :: ROCK&SOCIALSOCIAL MEDIA BREAKFAST MONTREAL

1. SOCIAL MEDIA & BRAND COMMUNITY

2. PAY-PER-SUCCESS AGENCY MODEL & EXAMPLE

3. Q&A FUN, FUN, FUN!


SOME INTRO


ROCK&SOCIALKICK-ASS SOCIAL MEDIA AGENCY SPECIALIZED IN CREATING AND DISTRIBUTING AWESOMENESS.


BUSINESS MODELPAY-PER-SUCCESS.


MOTTOBE SMARTER, PARTY HARDER.


WE ARE IN THE BUSINESS OF BRAND COMMUNITY BUILDING.


NOT (ONLY) ABOUTCONVERSATIONS


NOT (ONLY) ABOUTENGAGEMENT


NOT (ONLY) ABOUTTECHNOLOGY


NOT (ONLY) ABOUTCONVERSION


SOCIAL MEDIA


(FOR LACK OF A BETTER AND WIDELY ACCEPTED WORD)


IS ABOUT THE DEMOCRATIZATION OF IDEAS


IS ABOUT THE CREATION OF COMMUNITIES OF IDEAS


AND FROM A BUSINESS PERSPECTIVE


IT’S ABOUT CREATING


MEANINGLESS

Daniel Hernandez


OR


MEANINGFUL

Daniel Hernandez


RELATIONSHIPS BETWEEN CONSUMERS AND YOUR BRAND


SOCIAL MEDIA FACILITATES THE CREATION OF A CONSUMER BRAND COMMUNITY


Gregory A. Perez

YEEEEE…

FUN, FUN, FUN!


THESE ARE YOUR EMPLOYEES, YOUR CONSUMERS, YOUR REGULATORS


SEE YOUR BRAND COMMUNITY PLATFORM AS A SOCIAL CRM SYSTEM ON STEROIDS


SOCIAL MEDIA TOUCHES EVERY ASPECT OF YOUR BUSINESS


HRMARKETINGSALESCUSTOMER SUPPORTPRODUCT, ETC


A SIMPLE BRAND COMMUNITY MODEL

BRAND COMMUNITY IS A STRATEGIC APPROACH TO BUSINESS THAT HAPPENS TO USE SOCIAL MEDIA

A STRONG BRAND COMMUNITY WILL

DECREASE MARKETING AND SALES COSTS

INCREASE BRAND EQUITY AND SALES

PROVIDE DETAILED BUSINESS INTELLIGENCE

INCREASE EMPLOYEE ENGAGEMENT AND DECREASE HR COSTS


BRAND COMMUNITY ATTRIBUTES

SIZEENGAGEMENTREACHPLATFORMS


PAY-PER-SUCCESS(100% KPI BASED

COMPENSATION)


LINK REMUNERATION WITH RESULT MILESTONES

(KPI BASED COMPENSATION)


PAY-PER-SUCCESS ADVANTAGES


EVERYBODY IS FOCUSED ON RESULTS (AGENCY AND CLIENT)


PROCUREMENT IS HAPPY


CONSUMER GETS THE BEST DEAL


CREATIVE SOLUTIONS


DEFINING SUCCESS KPIS


REMEMBER THAT SOCIAL MEDIA TOUCHES EVERY ASPECT OF YOUR BUSINESS


HR KPIS

NO QUALIFIED CVSEMPLOYEE

ENGAGEMENT


MARKETING KPIS

BRAND AWARENESSMARKET SHARE VS

COMPETITION


SALES KPIS

QUALIFIED LEADSCUSTOMER

ACQUISITION


COMMUNITY BASED KPIS

SIZEENGAGEMENT %REACH


REMUNERATION MODELS


CLASSICAL AGENCY REMUNERATION

RETAINER BASED YEARLY BUDGET

CAMPAIGN BASED 30% + 40% + 30%50% + 50%


PAY PER SUCCESS AGENCY MODEL

KPI BASED COMPENSATION

30-40% IN MONTHLY RETAINER

ADJUSTMENTS EVERY QUARTER

15-20% INCENTIVE


A SIMPLE PAY-PER-SUCCESS BUSINESS CASE & PROCESS


EXAMPLES:KPIS & COMPLETION %


EXAMPLESPAYMENT STRUCTURE


EXAMPLES:PLANNING PHASE


EXAMPLES:MONTHLY OPERATIONS


EXAMPLES:CAMPAIGNS


BE CREATIVEMONITOROPTIMIZEITERATE FUN FUN FUN


RECAP PAY-PER-SUCCESS


• 40% RETAINER BASEDHIGHER MAXIMUM BUDGET – KEEP INCENTIVES UP - AT LEAST 15%GATHER BEST DATA AND NEGOTIATEAGENCY MUST HAVE STRATEGIC LEADAGENCY MUST CONTROL THE KPI CYCLE (SALES, SOCIAL MEDIA, SUPPORT, ETC)CLIENT MUST PAY ON-TIME

PAY-PER-SUCCESS RULES


LAST THOUGHTS


PAY-PER-SUCCESS WALKS THE TALK LINKING REMUNERATION WITH ADVERTISING MILESTONES


THE BRAND COMMUNITY APPROACH HELPS YOU ASK THE RIGHT QUESTIONS


SOCIAL MEDIA ADVERTISING IS ABOUT CREATIVITY AND BUILDING A COMMUNITY NOT ONLY ABOUT AD-WORDS AND PAY-PER-CLICK.


CREATIVITY CAN BE USED EVERYWHERE EVEN IN YOUR BUSINESS MODEL.


LET IT ROCK & PLEASE CONNECT


Q&A


@ROCKANDSOCIAL

@OCTAVIANMIHAI

WWW.ROCKANDSOCIAL.COM


THANK YOU! HOPE IT HELPED!


OCTAVIAN MIHAICEO, [email protected]@octavianmihai@rockandsocial

PHOTOS ARE PROVIDED BY THE INTERNETS.LET ME KNOW IF YOU KNOW THE CREDITS OR THEY BELONG TO YOU AND WANT ME TO TAKE THEM OUT.

Pay-Per-Success: Changing the Client-Agency Model

Business

Transcript of Pay-Per-Success: Changing the Client-Agency Model