In the light of Borrell Associates recent study that showed astronomical churn rates at local search resellers like Yodle and ReachLocal, there has been a lot of speculation about the reasons why. I commented on David Mihm’s Blog that price is a big issue and how much they charge is still unknown.
Andrew Shotland, a a well respected seo, speculated on that same post that cost was probably between 30% – 50% of spend.
Here is what 2 customers of a prominent reseller told me:
I told them I wouldn’t do business with them until they told me how much they charged. I knew they weren’t doing it for free so I pressed. They still wouldn’t tell me and I continued to press until finally they got a manager who told me “We get the clicks at a discount from Google, so you would be paying the same thing as if you did it on your own”
That last statement sent my eyebrows up to the ceiling. The customer asked me if I could find out for him whether it is true or not. I told him that I would put out to the community.
I would like your opinion please help by commenting below.
Do you believe that some resellers get a lower price on clicks from Google and make their money on that spread?