I’ve given it a lot of thought and I’ve come to the conclusion that it doesn’t always pay to bid on your own brand. Sometimes it does; sometimes it doesn’t. So when should you not?
Well, there are no hard and fast rules. Every situation is different so we can’t say definitively that you should should always or should never bid on your own brand. But there are principles that we can employ.
For instance, if you have the top organic listing and no one else is bidding on your brand then you might very well be throwing money away by bidding on your brand. You could draw clicks away from your organic listing. On the other hand, if you do have competitors bidding on your brand then you need to bid on it as well. Otherwise, your competitors could be stealing clicks away from your listings. You need to protect your turf.
Another thing to consider is your affiliate policy. You should put it in writing that your affiliates cannot bid on your brand. There is nothing in the law that prevents them from doing so. If you don’t have a written policy for your affiliates then you’ll find yourself in the position of trying to stay ahead of your own affiliates for your brand name. While you’ll see your business increasing through the success of your affiliates, you could also be paying out more in commissions if you let them beat you in the bidding process. To prevent that, have a written policy that stops them from bidding on your brand and make sure the penalty is a loss of affiliate status if they do so. Protect your brand at all costs.
