RE: Cost-per-Action Advertising

From: Michael Ehlenberger <>
Date: Tue 01 May 2001 10:31:58 -0500


>While I salute anyone who can make a deal that works, I
>think there's an unfair comparison being made when we
>make the analogy between web advertising and other
>direct response, and try to buy our web advertising on
>a cost per action basis. As one who sustained a highly
>targeted print newsletter for a dozen years primarily
>on direct mail campaigns, I'm intimately familiar with
>the costs involved in DM. It's true that web ad
>effectiveness can be *measured* by looking at the cost
>per action, but I don't think it's a reasonable way to
>*price* the purchase of the advertising space (trust
>me--it's not just because I now have banner ad space
>to sell!)

Bravo! BRAVO! Very well put. I must add that after
all is said and done in MOST CPA deals, you are now
depending on the advertiser to be honest and pay you
for actual performance that you couldn't track. So,
it's like being forced into a partnership with someone
you don't know and than being told that you will never
see the books, only what information they choose to
share with you. Than... maybe you will get paid.

Again, I will put it out for all response. If anyone
has found an effective way to manage and track CPA
deals, and has a secret receipt for profit I'd like to
know about it.

Thanks All!

Michael Ehlenberger
Director, Business Development
Premium Network, Inc.
408.360.9895 direct
415.284.1444 San Francisco office

Received on Tue May 01 2001 - 10:31:58 CDT


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