Several people have been discussing affiliate models.
The affiliate model is very much flawed for online
advertising, because it has nothing to do with
advertising or marketing. Affiliate models are based on
mass-distribution through as many people possible
marketing the product. Affiliate programs DO NOT WORK,
as they don_t address the needs of a high-quality
website with high-quality users. If you have a quality
website you should be able to find a PARTNER where you
can come to some arrangement for that value. The prices
given in affiliate programs never fit it.
Don_t be confused by thinking that affiliate equals
CPA, because it is not true. Having a partnership with
a company where you reach a price structure that
allows you to promote their product in methods you
feel with work and get paid for results is not an
affiliate program. This is something you work out
separately with that company.
The perfect example is credit card programs _ lets use
nextcard. Nextcard will pay you as much as $35 per
approved application. But is every application-approved
equal to each other. Absolutely not _ in fact the
average cost-per-acquisition in the credit card
industry is $120! The $35 straight however ignores
several factors which SHOULD be calculated in their
payment:
- Income of applicant. The promoter of the card should
be paid based on the persons income, the higher, the
more they get.
- The credit history. While there is an acceptance
rate, there might be people with 5-star credit.
Should be a bonus for those.
However, NextCard and other credit card companies
never address this, and thus pay this flat fee.
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Pesach Lattin
Spyretech Inc - plattin_at_spyretech.com
http://www.spyretech.com
Creators of the absurd advertising newsletter
Subscribe to AdBumB http://www.adbumb.com
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Received on Fri Aug 31 2001 - 10:15:33 CDT
