Is Success Based Marketing a Good Idea For Companies?

Working with many different size companies I've learned some very interesting 'behavior' patterns. These different behavior patterns have taught me a great deal why big companies are big and why small companies are small.

It basically all comes down to the marketing. The big companies always invest more money in the marketing. The smaller companies always invest more money in the production with the hope that the product will sell itself. Whats even more interesting is that smaller companies many times will prefer to pay only based on success.

Why is paying based on success not a good thing - even for small companies?

If a marketer is very good and he/she is getting paid accordingly - he/she will be extremely committed to the client and will make every effort to bring in excellent results. If a marketer takes on a project that is based on success - the commitment to the client will be extremely low and in the long run this affects the client.

This past weekend there was was a very interesting article published about this issue - I highly recommend you read it:

"Success fees’ May Not Lead to Success For Israeli Firms"

All the best!

Hillel Porath

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