1. Pay-Per-Success:
Changing the agency-
client model
A social media agency model
100% KPI based compensation
Octavian Mihai
Rock&Social
Social Media Brunch - Montreal
12 October 2011
12 OCTOBER 2011 – SMB MONTREAL

2. 1. SOCIAL MEDIA & BRAND COMMUNITY
2. PAY-PER-SUCCESS AGENCY MODEL &
EXAMPLE
3. Q&A FUN, FUN, FUN!
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

3. SOME INTRO
12 OCTOBER 2011 – SMB MONTREAL

4. ROCK&SOCIAL
KICK-ASS SOCIAL MEDIA AGENCY
SPECIALIZED IN
CREATING AND DISTRIBUTING
AWESOMENESS.
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

5. BUSINESS MODEL
PAY-PER-SUCCESS.
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

6. MOTTO
BE SMARTER, PARTY HARDER.
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

7. OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

8. WE ARE IN THE
BUSINESS OF BRAND
COMMUNITY BUILDING.
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

9. NOT (ONLY) ABOUT
CONVERSATIONS
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

10. NOT (ONLY) ABOUT
ENGAGEMENT
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

11. NOT (ONLY) ABOUT
TECHNOLOGY
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

12. NOT (ONLY) ABOUT
CONVERSION
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

13. SOCIAL MEDIA
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

14. (FOR LACK OF A BETTER
AND WIDELY
ACCEPTED WORD)
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

15. IS ABOUT THE
DEMOCRATIZATION OF
IDEAS
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

16. IS ABOUT THE CREATION
OF COMMUNITIES OF
IDEAS
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

17. AND FROM A BUSINESS
PERSPECTIVE
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

18. IT’S ABOUT
CREATING
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

19. MEANINGLESS
Daniel Hernandez
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

20. OR
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

21. MEANINGFUL
Daniel Hernandez
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

22. RELATIONSHIPS
BETWEEN
CONSUMERS AND
YOUR BRAND
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

23. SOCIAL MEDIA FACILITATES
THE CREATION OF A
CONSUMER BRAND
COMMUNITY
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

24. YEEEEE…
FUN, FUN, FUN!
Gregory A. Perez
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

25. YEEEEE…
FUN, FUN, FUN!
Gregory A. Perez
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

26. THESE ARE YOUR
EMPLOYEES, YOUR
CONSUMERS, YOUR
REGULATORS
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

27. SEE YOUR BRAND
COMMUNITY PLATFORM
AS A SOCIAL CRM
SYSTEM ON STEROIDS
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

28. SOCIAL MEDIA TOUCHES
EVERY ASPECT OF YOUR
BUSINESS
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

29. HR
MARKETING
SALES
CUSTOMER SUPPORT
PRODUCT, ETC
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

30. A SIMPLE BRAND
COMMUNITY MODEL
12 OCTOBER 2011 – SMB MONTREAL

31. BRAND COMMUNITY IS
A STRATEGIC
APPROACH TO
BUSINESS THAT
HAPPENS TO USE
SOCIAL MEDIA

32. A STRONG BRAND
COMMUNITY WILL

33. DECREASE MARKETING
AND SALES COSTS

34. INCREASE BRAND
EQUITY AND SALES

35. PROVIDE DETAILED
BUSINESS
INTELLIGENCE

36. INCREASE EMPLOYEE
ENGAGEMENT AND
DECREASE HR COSTS

37. BRAND COMMUNITY
ATTRIBUTES
SIZE
ENGAGEMENT
REACH
PLATFORMS
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

38. OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

39. PAY-PER-SUCCESS
(100% KPI BASED
COMPENSATION)
12 OCTOBER 2011 – SMB MONTREAL

40. LINK REMUNERATION
WITH RESULT
MILESTONES
(KPI BASED
COMPENSATION)
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

41. OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

42. PAY-PER-SUCCESS
ADVANTAGES
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

43. EVERYBODY IS FOCUSED
ON RESULTS (AGENCY
AND CLIENT)
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

44. OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

45. PROCUREMENT IS HAPPY
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

46. OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

47. CONSUMER GETS THE BEST
DEAL
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

48. OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

49. CREATIVE SOLUTIONS
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

50. OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

51. DEFINING
SUCCESS KPIS
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

52. REMEMBER THAT SOCIAL
MEDIA TOUCHES EVERY
ASPECT OF YOUR
BUSINESS
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

53. HR KPIS
NO QUALIFIED CVS
EMPLOYEE
ENGAGEMENT
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

54. MARKETING KPIS
BRAND AWARENESS
MARKET SHARE VS
COMPETITION
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

55. SALES KPIS
QUALIFIED LEADS
CUSTOMER
ACQUISITION
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

56. COMMUNITY BASED
KPIS
SIZE
ENGAGEMENT %
REACH
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

57. REMUNERATION
MODELS
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

58. CLASSICAL AGENCY REMUNERATION
RETAINER BASED YEARLY BUDGET
30% + 40% + 30%
CAMPAIGN BASED
50% + 50%
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

59. PAY PER SUCCESS AGENCY MODEL
KPI BASED COMPENSATION
30-40% IN MONTHLY RETAINER
ADJUSTMENTS EVERY QUARTER
15-20% INCENTIVE
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

60. A SIMPLE
PAY-PER-SUCCESS
BUSINESS CASE &
PROCESS
12 OCTOBER 2011 – SMB MONTREAL

61. EXAMPLES:
KPIS & COMPLETION %
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

62. EXAMPLES
PAYMENT STRUCTURE
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

63. EXAMPLES:
PLANNING PHASE
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

64. EXAMPLES:
MONTHLY OPERATIONS
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

65. EXAMPLES:
CAMPAIGNS
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

66. OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

67. BE CREATIVE
MONITOR
OPTIMIZE
ITERATE FUN FUN FUN
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

68. OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

69. RECAP
PAY-PER-SUCCESS
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

70. PAY-PER-SUCCESS RULES
• 40% RETAINER BASED
HIGHER MAXIMUM BUDGET – KEEP INCENTIVES UP - AT
LEAST 15%
GATHER BEST DATA AND NEGOTIATE
AGENCY MUST HAVE STRATEGIC LEAD
AGENCY MUST CONTROL THE KPI CYCLE (SALES, SOCIAL
MEDIA, SUPPORT, ETC)
CLIENT MUST PAY ON-TIME
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

71. LAST THOUGHTS
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

72. PAY-PER-SUCCESS
WALKS THE TALK
LINKING REMUNERATION
WITH ADVERTISING
MILESTONES
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

73. THE BRAND COMMUNITY
APPROACH HELPS YOU ASK THE
RIGHT QUESTIONS
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

74. SOCIAL MEDIA ADVERTISING IS
ABOUT CREATIVITY AND
BUILDING A COMMUNITY NOT
ONLY ABOUT AD-WORDS AND
PAY-PER-CLICK.
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

75. CREATIVITY CAN BE USED
EVERYWHERE EVEN IN YOUR
BUSINESS MODEL.
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

76. LET IT ROCK & PLEASE
CONNECT
12 OCTOBER 2011 – SMB MONTREAL

77. Q&A
12 OCTOBER 2011 – SMB MONTREAL

78. @ROCKANDSOCIAL
@OCTAVIANMIHAI
WWW.ROCKANDSOCIAL.COM
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

79. THANK YOU!
HOPE IT HELPED!
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL

80. OCTAVIAN MIHAI
CEO, Founder
o@rockandsocial.com
@octavianmihai
@rockandsocial
PHOTOS ARE PROVIDED BY THE INTERNETS.
LET ME KNOW IF YOU KNOW THE CREDITS
OR THEY BELONG TO YOU AND WANT ME TO TAKE THEM OUT.
OCTAVIAN MIHAI :: ROCK&SOCIAL
SOCIAL MEDIA BREAKFAST MONTREAL