Jellyfish's unique transition charging model is designed for clients that would like us to run a Risk-Free Cost Per Acquisition (CPA) campaign for them but have not yet established a proven CPA.
Our Risk-Free CPA model gives companies a way to generate volume of acquisitions in their PPC campaigns in a way that is completely self-financing. However, if you haven't run a PPC campaign before, or don't have an established CPA, the Transitional Model might be just what you're looking for.
For an agreed transitional period (usually 3 months) we will run the campaign on a management fee basis in order to track and hence establish a robust and accurate CPA via Paid Search. This tracking will capture all acquisitions, online as well as call generated (if applicable).
We'll then apply our advanced campaign and bid management methodologies to drive the CPA down as far as possible during this agreed timeframe. Full transparency and reporting is provided during this period.
At the end of the transitional period, Jellyfish and the client will review the CPA that has been achieved. The client then has the option to switch to a pure CPA model going forward, whereby Jellyfish pay all the media costs and only charge the client the CPA upon delivery of the acquisition (sale, enquiry, registration etc.)
The management fee during the transitional period is £5,000 per calendar month, or 15% of the media budget, whichever is greater.
If the client decides to switch to the pure CPA model going forward then the CPA would be the actual CPA achieved at that point (in terms of pure media cost) plus a 15% uplift.
During the transitional period the CPA that Jellyfish has achieved is £10.00 (in terms of pure click costs with the search networks). At this point the client can decide to switch to the pure CPA model, in which case the CPA payable to Jellyfish thereafter would be £11.50. (£10 + 15%)
Alternatively, the client could decide to extend the transitional period and see if Jellyfish can achieve further economies and continue to drive the CPA down. However, with a fixed management fee of £5,000 pcm (or 15% of media spend) the resources Jellyfish can apply will be limited. There's only so far a CPA can be driven down, given the resource constraints.
The transitional model is the perfect way to establish campaign metrics and to prepare to migrate to a CPA-based campaign.