Re: Cost-per-Action Advertising

From: Phil Tanny <info_at_subscription-service.com>
Date: Fri 01 Jun 2001 10:05:19 -0500

MICHAEL EHLENBERGER <michael_at_premiumnetwork.com> WROTE:

>Somewhere in this mass of "buying-model confusion" is a
>solution.

Here's a bit of analysis and at least one solution
as seen by this buyer.

We all want to sell CPM and buy CPA because none of us
trusts the other. The buying model of each transaction
is determined by whoever needs the sale the least.

If a seller, especially an agent, doesn't move product
they generate no income for themselves. If a buyer
can't find a comfort level with buying online
advertising they have a hundred other profitable places
they can invest their money offline until they reach
their comfort level.

Which is one reason why this marketplace will be
increasingly conducted with CPA pricing, imho.

Over the past few months I've offered our budget to
anyone I can find who gets at least 500 unique visitors
a day. Plus I've been pitched by more agents, networks
and volume sellers than I can remember. The whole
field (except small amateur site owners) has been given a
shot at our budget.

In spite of the fact that I started this campaign
looking for one large vendor to do the whole job,
medium sized, sole proprietor type web site owners are
beating the big guys hands down and walking away with

the entire sale.

Here's how they're doing it.

In 10% of the time it takes an ad network sales person
to make their CPM pitch these independent site owners
have joined my CPA based partner program and put my
income projections to a real world test on their site.

These site owners seem to get it that trust is the core
obstacle to ad sales in this marketplace.

They see that I've already solved my own trust concerns
by creating a CPA based partner program. So they don't
waste time trying to cleverly reinvent the wheel for
me. They simply grab my proposed solution with both
hands and stomp on it with both feet. If it survives
their test then they have a new customer and I have a
new vendor.

That's how it's done folks. See the problem, and
address it. Or even easier, let the buyer
themselves address it.

Many readers of this forum won't be drawn to this
simple solution because it's not complicated and
sophisticated and because they won't perceive it as
fair. I wouldn't argue with any of that.

I'm just pointing out why the winners are winning in
our case. They won our budget by recognizing that 5
minutes of coding is a more effective sales strategy
than a week of big buzz words.

Best of luck to all of you, large and small!

Sincerely,
Phil

Phil Tanny, info_at_subscription-service.com
http://subscription-service.com

'Good judgement comes from experience;
and experience, well, that comes from
bad judgement.'



Received on Fri Jun 01 2001 - 10:05:19 CDT