Performance Marketing Terms & Conditions
Below are our terms of service for performance based advertising.
Looking for our general terms of service?
How we differ from most digital marketing agencies in our performance-based advertising is our payment structure is strictly performance-based and usually tied to sales, underscoring our commitment to deliver demonstrable results for our clients. These are additional terms of service that apply to our performance-based marketing clients.
The definition of "performance" in the context of performance marketing program?
"Performance" in the context of our performance marketing program is defined by the achievement of specific objectives outlined at the onset of working together. Generally for brick and mortar ecommerce stores, we track the success of digital marketing performance as sales revenue that is a direct result from advertising campaigns. However, for some clients it's more appropriate to measure other factors such as lead generation.
Metrics used to measure performance
By default, in our performance-based marketing program the term "performance" primarily refers to the Return on Ad Spend (ROAS), which serves as our key performance indicator. However, we remain flexible and open to incorporating other relevant metrics as deemed appropriate.
How we measure performance metrics
We utilize a suite of analytical tools that are standards throughout the top performance marketing agencies, including but not limited to Google Analytics, Google Ads, and Shopify Analytics to gauge performance. One should note that due to a variety of factors, the results obtained from different analytics models may not always align perfectly. In such scenarios, we opt to base our fee calculations on the largest measurable result of performance.
Fees for our performance marketing program
Unlike most digital marketing agencies that charge an upfront setup fee, followed by a recurring monthly fee and further a percentage of the ad budget, our billing model is radically different because it is only based on business growth through sales.
We only charge a revenue share fee based on a percentage of the sales that are directly attributable to our advertising campaigns. This means that our performance based marketing revenue share is intrinsically tied to your success. We firmly believe in our ability to drive results, and therefore, we're willing to put our money where our mouth is. If we don't generate sales for you, you don't pay us. It's as simple and transparent as that.
Do we charge a setup fee?
No, we do not charge a setup fee. As part of our commitment to performance-based pricing, we believe in demonstrating value before you incur any costs. This approach allows us to build trust and align our goals with your success from the outset.
Do we charge a monthly fee or retainer?
No, we do not charge a monthly fee or retainer. Our payment model is purely performance-based, meaning we only charge a fee when we generate positive measurable results from our digital marketing efforts. This approach ensures that we are fully invested in your success and encourages us to continually strive for improved performance.
Do we charge a percentage of ad budget?
No, we do not charge a percentage of ad budget and never have. Our unique revenue model is strictly based on performance, which means we only get paid when we successfully generate sales for your business. This aligns our interest with yours, as our earnings are directly tied to your success. Our approach ensures that we are fully committed to driving powerful results that will contribute to your bottom line.
How do we make money from our marketing services?
Our revenue model is fundamentally rooted in partnership, where your success is our success. We begin our work without any cost, diligently setting up everything to establish a solid ad structure for achieving sales. This approach is a testament to our confidence in our ability to deliver a substantial return. Once we generate sales that exceed five times your ad spend in one calendar month, we will invoice you a revenue share of your sales.
How do we calculate revenue share?
Our revenue share is calculated on a sliding scale based on the multiple of sales revenue generated from your ad spend. We keep it extremely transparent and fair - the more you earn, the higher our fee, up to a limit. Here's how it works:
Lets say you spend $100 on ads.
- Earn up to $499 - Our work is FREE!
- Earn 5X ($500) - Pay 5% ($25)
- Earn 6X ($600) - Pay 6% ($36)
- Earn 7X ($700) - Pay 7% ($49)
- Earn 8X ($800) - Pay 8% ($64)
- Earn 9X ($900) - Pay 9% ($81)
- Earn 10X ($1,000) - Pay 10% ($100)
- Earn 11X ($1,100) - Pay 11% ($121)
- Earn 12X ($1,200) - Pay 12% ($144)
- Earn 13X ($1,300) - Pay 13% ($169)
- Earn 14X ($1,400) - Pay 14% ($196)
- Earn 15X ($1,500) - Pay 15% ($225)
- Earn 16X ($1,600) - Pay 16% ($225)
If you earn more than 16X, our fee is capped at 16%.
How our performance marketing budget subscriptions work
We need an ad budget to do our media buying. Our performance marketing budget subscription works on a prepaid basis. Once you are accepted as a client, you'll subscribe to a monthly budget, selected by you.
The budget will automatically be charged to your credit card each month and will be applied to your advertising account, minus any processing fees and/or currency conversion.
We will then use this pre-paid budget for your ads.
We guarantee paid advertising results based on ad spend, not total ad budget
ROAS = Revenue / Cost
Our calculation for Return On Ad Spend is ad revenue divided by ad cost.
Performance results are tied directly to the cost on advertising, not the total budget available. This means that if the allocated budget is not fully utilized within a given period, the results will correspond to the amount actually spent on ads during that period.
Guaranteed minimum performance threshold
We provide a 5X guarantee on the performance of our digital marketing services. Each month we are unable to generate a Return on Ad Spend (ROAS) of 5 times your investment in advertising, our services will be provided at no cost to you. This means we are firmly committed to ensuring that you receive value from our services and are confident in our ability to deliver results. Simply put, your success is our success.
What happens in the case of underperformance or non-performance?
In the event of underperformance or non-performance, our policy is straightforward and customer-centric. If your advertising spend in any given month fails to generate at least five times that amount in sales, we will not bill you for our services for that period.
If we don't spend your ad budget
It's best to consider your ad budget as a monthly average for a longer period of time. Some months it'll be under, some months it may be over budget. But it'll average out to your monthly budget.
Our goal is to spend at least 80% of your total budget each month. This can be difficult at first, but will become more consistent over time.
It is of course in our interest to spend all of your ad budget, so if we are not spending it completely it's becasue we're working something out. Please be patient with us.
In the event of under-spending, any remaining budget from a given month will automatically be rolled over into the following month's total budget. If we overspend, the surplus will be deducted from the next months budget.
Payment terms on all our invoices
Our billing cycle operates on a 7-day net term. This means that from the day an invoice is issued, you have exactly 7 days to clear the payments. This applies even if the invoice date falls on a weekend or a public holiday.
Are there cancellation or termination terms specific to the performance-based marketing program?
Our performance based marketing agency is built upon a foundation of mutual business objectives and partnership. We are thoroughly committed to working with clients that are equally excited about partnering with us. We intend to work together long term, because the successful campaigns are so good for both you and us.
You can cancel anytime
There is no contract or minimum time required to participate in our online advertising program. You are free to cancel your advertising services subscription at any time.
Upon cancellation, any remaining advertising budget paid to us will continue to be spent on your ads until your budget is used up. In terms of billing, you will be charged each month only when your revenue exceeds more than five times the amount spent on ads until the ad budget runs out.
We can cancel anytime
We reserve the right, at our sole discretion, to suspend or terminate your subscription to our performance-based marketing program at any time, with or without cause, and with or without notice. Such termination can result from a variety of reasons that may include, but are not limited to, an assessment that our performance based marketing program is not the best fit for your needs, an assessment that we can't produce enough results to make our performance based marketing strategy viable. A cancellation initiated by us follows the same protocol as one initiated by you.
We are not liable for any losses, damages, or harm arising from a cancellation of service, regardless of who initiates it.
If there is remaining ad budget, we may choose to apply the remaining budget to any outstanding invoice(s) at our discretion, though we will usually spend the remaining budget on ads and invoice for our performance based revenue share.
What's expected from our clients
Getting started with us is a straightforward process if your website is already functioning optimally and at first we mainly need access to your online properties such as, but not limited to, Google Analytics, Google Search Console and Google Merchants.
As we delve into your paid search data, potential areas for improvement may come to light. In such instances, we will provide you with insightful recommendations for enhancements.
We encourage you to provide us with any assets that you may have, such as high-resolution photos, professionally designed logos, promotional videos, or any other materials that reflect your brand identity.
We also appreciate promotion details ahead of time, including seasonal promotion you plan to run but also exclusive paid ads promotions we can offer year-round.
If you are developing marketing strategies for the future, we'd appreciate if you keep us apprised of your plans, and provide us relevant assets and links.
Addressing product refunds
Once a purchase is made on your store, it is beyond our control of whether or not your customer requests a refund or return. There is also no way for us to monitor this activity. Similar to lead generation for service industries, where not all leads result in sales, in retail some sales result in returns. We hope that all sales are fulfilled without issues, but we do consider refunds and exchanges a cost of doing business and don't count returns against our revenue share.
However, we will troubleshoot and issues with the sales you are receiving if you believe an abnormal number of paid search purchases are being returned. Please let us know if this is the case, so we can look at what may be the cause of this and whether it is something we can address for future marketing.
Data collected in the context of performance measurement
We require access to our clients' Google Analytics accounts and other relevant online platforms. This allows us to gather precise data about their advertising opportunities and results, serving as a foundation for evidence-based performance marketing decision making as well as a critical aspect to calculating our revenue share of sales. We may also install a Google Ads conversion tracking script onto your website.
Do our clients own their accounts?
Except the paid search ad account, all the accounts connected to our performance-based advertising program are owned by our clients who give us administrative access to them. You can withdraw access at any time.
Keep in mind, that since access to these accounts is critical to measuring and maximizing your marketing goals as well as measuring the success of your paid search campaigns, if access to any of these accounts is withdrawn without notice, your status as a member of our performance advertising services is terminated, outstanding invoices need to be paid immediately, ads are turned off and you forfeit any remaining ad budget as we cannot reliably measure our results which is needed for our business model. If you do plan to exit our program, please have a conversation with us so that we can schedule a graceful exit together that maximizes your revenue up to the moment that your ads are turned off.
In regards to the ad account, it is owned and maintained by us and access to ad accounts is not shared with clients/members. If our relationship is terminated, the ad account is not transferred to you.
If you are interested in working with Peter inside your own ad account, then that would fall under our time-based coaching / consulting services and not performance marketing.
We don't offer full service agency support to our clients
What truly defines us and sets us apart is our relentless focus on performance. We provide a highly specialized Performance Marketing Program which is designed to maximize your sales online using paid ads. We also offer coaching and consulting to help the retail business owner take control of their online marketing. We're not really interested in much else.
We do have an extensive network of contacts for other related fields like web design, local optimization for search engines, Facebook advertising and social media marketing, etc. so if you're looking for something in particular, we may be able to suggest a good fit.
How to apply for our performance marketing program
It's important to note that our performance marketing program is not a one-size-fits-all solution. Primarily, it has been designed for brick-and-mortar retailers, although we have accommodated other types of businesses on a case-by-case basis. Most of our clients operate on Shopify, but we do cater to businesses using other platforms as well. Regardless of the platform you use, it is crucial for our program's success that we can measure sales data effectively, typically via scripts, Google Analytics, or a combination of the two. Most clients that are accepted into the program, start the following month after their marketing budget is set, however if many application some through at the same time you also may be placed on a waiting list.
If you wish to apply to our performance marketing program, please fill out the application form at the bottom of this page: https://benesthemenace.com/products/performance-based-marketing