Performance Marketing and the Pay Per Lead Model

Today’s video is all about the Pros and Cons of Pay Per Lead Performance Marketing. 

As an influencer in the performance marketing space, I think it is essential to be upfront and honest about the negative sides of PPL equally to the positive. 

While the positives outweigh the negatives, It’s important to know both sides before diving in. 

So let’s get straight to it  👇

The Cons of Pay Per Lead


1. Hard to Land a ‘Whale Client’ :

What do I mean by a ‘Whale Client’? 🐋

I mean national clients with a vast B2C audience and with deep pockets.

If you’re lucky and land a ‘Whale client’ off the bat, you could make 7-figures with this one client alone! 

"I've been through a ton of courses that teach how to get to $100k per month, but Dan's pay per lead model is the only one that I've been able to do it with and I did it with 1 Client."​
Matt Milne


When first starting Pay Per Lead, it can be hard to land a national client when you have no testimonials and little reputation in your chosen vertical.  

To combat this, try asking your current clients if they would be willing to switch to Pay Per Lead, or offer a lead based trial to new prospective clients.

See 3 Ways to Charge Clients For Your Leads  for more tips. 

Practice makes perfect, so keep fishing, and you will catch a BIG whale client. 🎣

2. Facebook Ad Issues

Unfortunately, if you are in the Facebook Advertising game, you will probably come across a time when Facebook has disapproved an ad or shut down an entire advertising account. 

Trust me; it happens to the best of us. 

Luckily I have an in-depth article on how to fix these Facebook issues that us advertisers have to face. 

You can read it here 👉 Facebook Banned Accounts 

3. Profit Margins Are Thin at First

When you’re first starting in Pay Per Lead, your profit margins can seem thin. 

Remember, you are building a sustainable and profitable agency, and not everything happens at once. 

4. Clients Can Stop Ordering

Performance-based marketing requires thick skin. 

A client could order 100 leads from you one week and stop ordering the next. 

In our program, we teach how to deliver exceptional quality leads that keep the clients ordering. ✔️

5. Hard to Get Paid Upfront

How you get paid by the client comes down to how you position your offer.  

Ideally you would have your client agree to pay you upfront each week. 

Worst case, you agree to be paid a week in arrears and put the advertising spend on your credit card. 

Pros of Performance Marketing


1. Easier to Land Clients

Trying to sell a 6-month retainer contract is hard work.

Pay Per Lead is an offer that converts and is an easier sell. 

✖️ NO contracts. 

✖️ NO complicated monthly reports. 

✖️ NO SEO. 

If the client ordered 100 leads a week, then decided they don’t want to use your services again, there would be no hard feelings. Simply move onto the next client.

2. Higher Profit Margins

Once you get your ads dialled-in, you can make higher profit margins with Pay Per Lead. 

For example, you can make 7-figures from one national client! 💸💸

3. Less Work

Gone are the days of being a “Jack of all trades”, for your clients.

With the Pay Per Lead Model, you only need to focus on one thing: generating quality leads! 

4. Client Relationships 

With the Pay Per Lead model, clients treat you like a team member instead of just another agency. 

Leads are the lifeblood of their business, and if you can deliver high quality leads consistently the relationship benefits both parties. 

5. Frequent Flyer Points

Not many realise this little perk. 

If you use your credit card on your advertising accounts, then you can rack up tons of frequent flyer miles. 

After all your hard work, why not treat yourself by taking your family away on a free trip using your points? ✈️🌴

6. Multiple Traffic Sources 

Don’t put all your advertising eggs into the Facebook basket. 

In our program, we teach our students how to diversify and advertise on multiple traffic platforms such as Youtube and Twitter. 

With the Pay Per Lead Model, where you advertise is up to you. 

Thanks for watching. 

If you want to learn how to run a profitable Pay Per Lead Agency and switch over from retainer contracts, then how about we set up a time to chat

You can find out more about my program here and how to set up a call. 📞 👇

Video Transcript

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