Performance based advertising [a.k.a. Cost Per Action (CPA) or Pay for performance advertising] is probably the most cost effective advertising you can get for your business.
Unlike traditional advertising that costs you a fixed fee, irrespective of whether your get results or not, performance based advertising means that your advertising costs are based on the actual performance of the adverts and you only pay for results, i.e. web traffic, leads or sales.
Set up correctly, this type of advertising is very cost-effective and your reach can be very wide. This is also and ideal form of advertising to offer your brokers, or any other insurance broker for that matter, to add to their web sites as they can earn an income without having to spend time on the sale.
2.1. Types of performance based advertising:
2.1.1. Advertising on search engines:
Advertising on search engines are directly linked to the keywords or phrases that people use to search, i.e. “medical aid”, medical cover”, “hospital expenses”, doctors bills”, “health insurance”. This means that the visitors who see your add are actually looking your type of product or a related service or information.
2.1.2. Content advertising:
Content advertising means that your adverts appear on private web pages with content related to your products and services.
2.1.3. Affiliate marketing:
Affiliate marketing means that you pay a certain amount or percentage to web site owners with suitable web sites to place your adverts on their web sites
2.2. Types of payment options:
2.2.1. Pay per click:
Pay per click (PPC) means that your pay for every time an Internet visitor clicks on your advert and goes through to your web site. So you pay for traffic to your web site and the cost is normally from R1.00 per click, however you can limit the amount you re prepared to spend in total.
2.2.2. Pay per lead:
With Pay Per Lead (PPL) you pay a certain amount, based on your conversion rate of leads conversion) for every online lead you get. For example, Outsurance pays R75 per lead.
2.2.3. Pay per sale: With Pay Per Sale you pay a percentage or an amount only when a sale actually materializes. This may be an issue with regulations as medical aids, the last time I heard, are only allowed to pay an admin fee and not commission. On the other hand this is an advertising cost for Commed but this is probably a grey area that we should stay away from.
2.3. Our involvement:
Phoenix can help you set up and administer these, and other, advertising options. There is an initial set up fee and the cost of the actual adverts will be carried by yourself according to the amount budgeted for each.
We can also assist with finding and recommending additional online advertising options.
Contact us if you need help