Re: More suggestions...

From: Andy Bourland <andybourland_at_yahoo.com>
Date: Thu 01 Nov 2001 20:30:00 -0500

In response to Miguel's lengthy diatribe praising the
virtues of CPA and CPC pricing models...

Having followed the links at the bottom of your post,
I can well understand why you believe so fervently in
the models you espouse... and I have no doubt that
it works for you. I'm happy for you.

At some point in time however, we're going to have to
think through what really happens with most human
beings who are surfing about on the net.

Your model depends on hyper-compulsives who are looking
for "free-this" and "free-that". Sweepstakes junkies,
contest addicts, people who are desperately seeking
something for nothing. As state lotteries throughout
the land prove, there are plenty of hyper-compulsives
out there, and there are bucks to be made in preying
upon their weaknesses.

But what about the rest of us who actually THINK before
they buy? Who consider alternatives? Who research
various products, their competitors, the companies
who stand behind them?

There are a good many people like that on the net.
I daresay a majority -- though I have no research to
say that's definitely the case. My experience and
observation over the years is that a good deal of
what people use the internet for is to explore for
more information on almost any endeavor they are
involved in: buying a car, buying a hi-fi, coaching
kids soccer, dealing with disease, homeschooling, etc.

They come for information, various perspectives,
alternative points of view.

This majority is highly unlikely to respond to the
increasingly inane come-ons that CPA marketers use
to prey to the hyper-compulsive market.

This majority can in fact develop the awareness,
interest in and relationship with a brand that can be
found online -- but it's highly unlikely that they
will compulsively buy the first time they see a banner
or because they are being offered "free-this" or
"free-that". They're not idiots, and don't like
being treated that way.

A publisher's business model that builds a high
quality audience -- one that is very attractive to
select advertisers -- is a wise course to take. A
quality audience is not built or retained by treating
them like fools. It's developed by offering quality
content and/or services on an ongoing basis, nurturing
their relationship with that audience, and not pitching
them all the time.

People expect some degree of objectivity from sites
like this, and when the publisher is "partnering" with
an advertiser, beholden to them in that they get
NO money unless their visitors click a banner or buy a
product, that trust and that relationship diminish greatly.

Prolonged brand exposure to a quality audience has value,
even though you can't immediately measure it through
"clicks" and compulsive buys made on the spot.

In our obsession with numbers and spreadsheets, we have
a hard time understanding or believing in that, but it's
true.

When the "open to buy" comes about in your life --
whether it be for a car or an ad management system or
house painters or a new camera -- the immediate
advantage goes to those who have established a brand
relationship with you over the time that you WEREN'T
in the market. So you are ready to buy, and suddenly
you have 2-3 alternatives that you are willing to
consider. How did those brands get there? Through
ongoing marketing programs that built their brand
awareness over time.

There will always be low hanging fruit, hyper-compulsive
buyers, suckers, and others who can be counted to
respond to the direct response business that pollutes
cable television and has now destroyed the internet.
Yours will always be a successful business model. The
numbers will always back your point of view.

But for the rest of us -- the majority, I daresay -- a
business model that exhibits respect for the readers
and prospective customer's intelligence, that pays fair
value for access to a quality audience, and that
patiently develops brand relationships with publishers
and customers over the long run will prevail.

Right now, times are tough. The bottom feeders and
direct response merchants are ruling the roost online.
This too shall pass.

We're recovering from the VC induced drunkfest of the
late 90's and are just now beginning to explore the
advertising and publishing models online that we didn't
get to before because we were inebriated by greed and
exuberance.

Those who truly offer value online will get their
rewards. Those marketers that develop a solid
understanding of the needs and wants of those who
search for information online will get their rewards.
That they haven't completely figured it out yet is
hardly surprising, given the young age of the industry.
But it will happen.

So your CPA/CPC value system will have its place in the
dregs of the online world where it belongs, just as it
thrives on the Jerry Springer show and 3 am cable TV.
It will always be prosperous.

But the internet IS a great medium for publishing, for
research, and for doing business. The patient,
intelligent approach to business shall prevail.

Andy


=====
Andrew R. Bourland
andy_at_bourland.com
978.409.1446



Received on Thu Nov 01 2001 - 19:30:00 CST