Many Third Marble customers have used ReachLocal in the past.  Some of our customers have given us their ReachLocal pricing and they always show us a flat rate, monthly pricing.  Some as low as $500 per month, some much more. Regardless of the monthly fees, when we ask our customers how much of that goes to pay for the clicks – ie. actual advertising – they don’t know. The reports they get don’t break out Reach Local’s fees from the cost of the ads.

ReachLocal reviews.

In Reviewing ReachLocal for customers, we learned they were publicly traded.

So we did a little investigative research on their reviews and ReachLocal’s pricing and costs. Since they’re a publicly traded company (NASDAQ: RLOC), we can see the breakdown of ReachLocal’s sales to their expenses.  In 2013, here’s the story:

Sales – $514mm.

Cost of Sales – $241mm.

Selling, general and admin expenses – $251mm.

Total Net Loss$2mm

So if we’re reading this correctly, for every $100 a ReachLocal customer spends for their service, only $47 goes towards the ads.  We’re assuming ‘Cost of Sales’ is the advertising cost paid to Google and other online services, so $241 / $514 = 47%.

That means $53 goes to pay for their sales people and other administration expenses ($251/$514).  That’s a lot of overhead.

Moral of the story – know how much of what you pay actually goes to pay for the ads.  If you’re spending $1000 per month with ReachLocal, only $470 of it is going to pay for ads.  Are they really doing $530 worth of work for you each month? (That’s $6360 a year.)  Food for thought.

“We’ve used companies like ReachLocal but Third Marble delivered literally double the leads at half the cost.”

Hunter M, Marketing Director
National Career College

If you would like internet marketing with transparent pricing at affordable rates, click on these links to check out Third Marble’s services:

AdWords for Franchsiees

Franchisor SEO and AdWords Packages

AdWords Management Services

Local SEO Services

We hope this helps!