Reach Local – Are they a Scam?

Reach Local Pay Per Click Scam

Reach Local is one of the largest Google AdWords re-sellers.  They really like to use this as one of their selling points, but don’t be fooled.  They have an alleged markup (when combined with hidden management fees) of 65%!  This is the largest that I have heard of yet.

Of the 3 big AdWords re-sellers featured on this blog for their horrible pay per click services, Reach Locals programs are probably more efficient that the other 2.  They sort of comply with Google’s requirement (I’ve heard, but not seen) to divulge the ACTUAL CLICK COST.  I say “sort of” because they don’t make it easy to find this info.  They also provide somewhat better (but not total access) data for their customers.  If it wasn’t for their ludicrous markups – they would probably not be a bad choice for small businesses.

Reach Locals Markup on Clicks is the worst

The alleged fees and markup that Reach Local charges combine to total 65% of your monthly budget.  If this is true, then that means that you will definitely not get a positive return on your investment.  Actually even if their markup is as “low” has Hibu’s alleged 40% – you would still struggle to get a positive R.O.I. from a pay per click campaign ran by Reach Local.

How can I make such a blanket statement – because the fact is that paid traffic tends to convert VERY LOW overall and across all industries.   This means that you need a lot of clicks to get 1 new customer.  If the markup being charged by Reach Local is 65% – you would need 65% more clicks to get that same 1 customer that you could have gotten on your own!

In my opinion, there is no way that you can pay Reach Local a markup of 40 – 65% and expect to get an R.O.I.  Dare I say you’d have better chances in the Yellow Pages?  Yep – you would!

Avoid Reach Local and save yourself a lot of money.

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