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Offline market "Reach Local" making $120,000 month

by AP
8 replies
My business is offline marketing, similar to Maria Gudelis and David Preston.

Long story short, I was at a seminar and I ran into a Web Design company owner. The owner told me he breaks even on his website company (has 5 employees, rent, etc...) but makes the majority of his money from Reach Local .com He told me that he has $600,000 in accounts receivable from his customers every month from Reach Local. He's been doing this for several years. He stated that his commission is 20% per month or apprx $120,000/1.5M per year.

I was in shock at how easy he said it was. Yeah, it took several years to build up that base, his average customer spends $1,200 per month. I guess that's about 500 customers. He said there is almost no drop-off rate and the checks keep coming in.

Anyone here doing something similar with Reach or anyone else?

Thanks for any feedback.
#$120 #making #market #month #offline #reach local
  • Profile picture of the author JRG
    One of my clients used them. I cannot remember why he stopped. He was not happy for some reason. He also uses Service Magic. They send him leads at about $15 per lead. Many of those sites also create sites on their domain instead of yours. Which is fine for generating leads. But they also use a lot of seo because they have good site rankings. Your customers would not keep any of that ranking if they decided to stop using them.

    I would say that if you can, try to find someone you can outsource to and make the money yourself.

    Or experiment with Reach Local to get some ideas on how you can set something up on your own. Especially if you are getting a commission from it.
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  • Profile picture of the author Dean Martin
    Originally Posted by AP View Post

    I charge my clients between $30,000 to $150,000 per year to handle their marketing. I have them completely covered except PPC. I build their sites, google maps, place in vertical directories, video, direct mail marketing, yellow page copy, build Twitter pages, Facebook, etc... I'm leaving money on the table by not offering any PPC.
    We do the same marketing consulting to offline businesses that you are doing - only also include PPC. I'm not sure how you can provide a comprehensive package without it.

    I wouldn't recommend outsourcing it - bring someone in house that already knows PPC. You need to be able to integrate each ad group w/it's own landing page to keep your QS high and click prices low.

    I know you don't want to add another thing to your plate or have to learn another skill but this one is worth learning. Your clients will love you for it - mine do...
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    • Profile picture of the author DogScout
      Originally Posted by dlmartin View Post

      We do the same marketing consulting to offline businesses that you are doing - only also include PPC. I'm not sure how you can provide a comprehensive package without it.

      I wouldn't recommend outsourcing it - bring someone in house that already knows PPC. You need to be able to integrate each ad group w/it's own landing page to keep your QS high and click prices low.

      I know you don't want to add another thing to your plate or have to learn another skill but this one is worth learning. Your clients will love you for it - mine do...
      Amen, Read and implement Perry Marshall's $200 book, check out Glenn Livingston's Hyper-responsive club (Just went to $67/mo ouch! but still over delivers), research and never stop testing and you will be in the 99.9% of PPC wizards on the planet.

      98% of PPC ad placers do not test. (not just a wing it statement, enter the keyword in Google, look to the ads on the right, refresh the page. any ads that go to the same URL that do not change means they are not testing.)

      Typically there is plenty of ability to be in position 3-7 in every niche out there. (being in 1 & 2 is like being the 1st dealership a person goes to, they hardly ever buy from the 1st place, 3-7 position usually has the best CTR, but again test your keywords to be sure.)
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  • Profile picture of the author Steve Faber
    Originally Posted by AP View Post

    He's been doing this for several years. He stated that his commission is 20% per month or apprx $120,000/1.5M per year.
    I just went to the affiliate section of their website. According to their site, they only offer a 2.5% payout. Is he in some special program to receive 20%?
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    For Killer Marketing Tips that Will Grow Your Business Follow Me on Twitter Now
    After all, you're probably following a few hundred people already that aren't doing squat for you.....
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  • Profile picture of the author Sirago
    I have experience in working with ReachLocal and I would not recommend them. They handle all aspects of your PPC campaigns and I've found it very difficult to make changes to URLs, Keywords, Ad Text, anything. Also, they use a system to manage your campaigns for you so if you tell them to spend $1000/mo and the system sees that it's only spent $500 and there are 5 days left in the month, it'll blow through the last $500 in 5 days by raising your CPC.

    I've worked with ReachLocal for over a year at my current employer and I would say it wasn't a good experience. The sales process is GREAT.. they get you on board.. but once you've given them money, watch out.. there goes the customer service.

    If you like to have ANY control over your campaigns, DO NOT use ReachLocal.

    Just my two cents.
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