Wayne Browning wrote:
> CJ is a seller of "infrastructure only." They also
> represent the biggest enemy of on-line publishers in
> that they have no regard whatsoever for publishers.
> They have little regard for results.
Will this thread never die?
What if affiliate marketing is like the stock market?
CJ = NYSE
Publishers = Sellers
Advertisers = Buyers
In this model the typical exchange cares only about
transactions, not price. An exchange is focused on
driving volume, because that's how it is paid.
In CJ's case it charges buyers 30% of commission paid
to sellers, subject to a 30 cent minimum per transaction.
To the extent that transactions are greater than $1, CJ
has an incentive to side with sellers (publishers) in
commanding higher prices.
Separately, CJ charges sellers a fee to join the exchange
(think: seat on NYSE). This gives it an economic incentive
to bring in more buyers. More buyers is a benefit to
sellers.
More sellers and buyers means more efficiency. Efficiency
simply means that prices at any given time represent the
cumulative knowledge of all participants, not that prices
are high or low per se.
In summary: Basic economics dictates that exchanges are
not the "biggest enemy" of sellers. While most exchanges
strive for neutrality, CJ's current pricing creates an
economic incentive for it to 1) attract more and more
buyers (which benefits sellers); and 2) side with sellers
in seeking higher transaction prices.
Both run counter to the assertions made in the previous
post. For more on "CJ as stock market" see:
http://www.affiliatehandbook.com/voices/20011019d_avant.html
Joel Gehman
President, PerformFirst.com
Publisher, AffiliateHandbook.com
joel_at_performfirst.com
tel.610.792.9597
cel.610.564.7349
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Received on Tue Oct 23 2001 - 12:09:51 CDT
