E-commerce Insights: Winning at Paid Search ’07

10. Manage your agency. If you use a search agency to manage your paid search campaigns, consider the following:
• a large fraction of your sales will be driven by your brand name;
• these terms typically have low cost; and
• your agency played no role in brand reputation.

Then consider compensating your paid search marketing agency as a percentage of ad spend, as opposed to a percentage of sales.