How To Best Handle $50k+ /month PPC Expenses When New To The Game

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invisible777

invisible777

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Jul 3, 2007
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So... my affiliate marketing expenses are going up and up (which is great = more money), but now the thing holding me back more then anything is my overall credit lines between my 2 cards (approx $40,000). It's pretty much maxed for the month, which sucks, because that means I have to scale back my campaigns. How would/did some of you handle going from spending $5-10k a month (which is where I've been since around October) to spending multiple 10's of thousands per month...

- Open more credit cards?

- Get a no preset limit card?

- Business loans?

- How to best handle your credit rating? I know that having a high utilization % can kill your credit score. A little worried about this one.

- Open business credit cards - incorporate - LLC? Not sure If I want to go this route yet, not really familiar at all with how it works.

I'm getting paid basically every 2 weeks and I fire off some early payments to free up credit lines periodically - but now this is getting a bit crazy (in a good way).

I know there's already some great threads on here about which credit cards to use, but I'm looking more for some strategy on handling these expenses when you're really just starting out in this game.

Thanks.
 


Get monthly invoicing, (adwords has this), you can get a credit each month and then pay 30 to 45 days after the end of each month. I had $50k for a while and they recently upped it to $125k and 45 day payment terms. (You get paid by the network long before you have to pay adwords).
 
beejeebers said:
Get monthly invoicing, (adwords has this), you can get a credit each month and then pay 30 to 45 days after the end of each month. I had $50k for a while and they recently upped it to $125k and 45 day payment terms. (You get paid by the network long before you have to pay adwords).
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Ok, that's news to me. Thanks for the info.

And then how do you pay off the invoice - write a check, credit card? Does it all need to be paid using the same method at the same time?
 
Why in God's name would you be doing this in your own name? Why haven't you incorporated in some way? Get on the phone with a damn tax attorney and have him file the paperwork today - what's it going to cost? $400 - $1000? Why would you take on all the liability personally?!
 
Man fucking Google is quick as shit. I did a google search for "adwords monthly invoicing credit card" and this thread is already on there, page 1.

But thanks for the info beejeebers. Anyone else have any strategies? I plan on calling Adwords on Monday.
 
Unarmed Gunman said:
Plumcard.
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I was looking at that, too. But I heard when you have a personal card then go for a no pre-set limit Business Amex, they put you through some sort of BS "financial review", which usually results in all your accounts getting canceled if they can't verify your income - and my income is pretty much all over the place right now.
 
Tell your network or advertisers that you need to get paid weekly. That always helps cashflow, and if you're doing good volume they should have no problem with it. "Well if you can't, your competitor said he will pay me weekly. I'd rather not switch to promoting them, but if you can't do it ...."
 
dsiomtw said:
Tell your network or advertisers that you need to get paid weekly. That always helps cashflow, and if you're doing good volume they should have no problem with it. "Well if you can't, your competitor said he will pay me weekly. I'd rather not switch to promoting them, but if you can't do it ...."
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This is the absolute best way. Remember, you don't work for the affiliate companies, its a partnership and they should be willing to do what they have to to keep that partnership healthy.
 
1. You must incorporate. You 're spending that much are you are not incorporated? You won't see much of that money once uncle sam bites into your ass. You must go LLC or corp to hold onto as much of your earnings as possible.

2. Get an American Express card with no preset limit and pay it on time.

3. This one is a no brainer. Pick up the phone and call the people you get your traffic from, tell them you need net 30 (try net 45) terms on your payments. You'll get 30 (or 45 ) days from delivery of goods to pay your bill. If you are doing the volume you say you are, that won't be a problem. if the guy on the phone won't agree, keep asking for the supervisor until you get to someone who can make that decision for you.
 
invisible777 said:
Ok, that's news to me. Thanks for the info.

And then how do you pay off the invoice - write a check, credit card? Does it all need to be paid using the same method at the same time?
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You pay the invoice by check or by wire transfer. But Google AdWords: Learning Center says
[SIZE=-1]Advertisers must first submit a credit application for review and approval by Google's finance team. In some cases, our finance team may request that you send your company's audited financials (balance sheet, income statement, cash flow statement and/or references) for further consideration.[/SIZE]
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[SIZE=-1]
Google is about the last place I'd send that kind of info!
[/SIZE]
 
I agree that you should incorporate and maybe get some kind of business lines of credit. I like PPC expenses on my credit card as well because I get tons of nice perks like airline tickets and credits to the AMEX mall. Best of luck to ya...
 
abednego said:
I agree that you should incorporate and maybe get some kind of business lines of credit. I like PPC expenses on my credit card as well because I get tons of nice perks like airline tickets and credits to the AMEX mall. Best of luck to ya...
Click to expand...

When getting rewards like cash back, plane tickets, etc do we need to pay taxes on them? I'm not a baller getting rewards yet but was just thinking about it.
 
Start an LLC, it costs about $250 in my state if you do the paper work yourself. This will let you apply for larger credit limits assuming you can verify your business income and your personal credit is good.

You may also want to use different cards for each PPC account.

The Google invoice thing works well to and if you have a solid history with adwords already, then they will not ask for all of your business records. I would still suggest the LLC before applying for invoicing with google as it just looks better.
 
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