Re: No CPA on FrankelBiz?

From: Phil Tanny <phil_at_philtanny.com>
Date: Mon 19 Nov 2001 22:09:11 -0500

Andy Bourland said:

>Perhaps you haven't noticed, but Rob on this forum has
>been the primary cheerleader for the CPA/CPC marketers
>who are destroying the industry.

This sentence jumped out at me as offering some further
insight in to the CPA vs. CPM controversy.

Let's imagine I have a factory that manufactures
widgets. In 1999 the market for widgets was great, but
now now nobody is buying widgets. But I keep making
them anyway. So, who is "destroying the industry"?
My customers of course!

Is it possible this mindset, expressed so well and so
often in this forum, is part of the problem sellers are
having? A big part?

It seems to me this thread has been too much
a discussion of mathmatical formulas in the hope that
some clever and complicated hybrid pricing system will
solve all the industry's problems.

I would propose to you that CPA pricing has come
forward as a force not because it's a buyers market and
advertisers expect lower prices. If lower prices was
the issue then everyone would have simply negotiated
lower priced CPM deals in this cycle of the market.

In my view, CPA is becoming part of this industry
because a growing segment of advertisers simply don't
trust those selling online advertising. Please notice
I'm not saying who is right or wrong. I'm just
pointing out that the bonds of trust between buyer and
seller have frayed to a serious degree and that it's
this psychological, attitudinal element that largely
explains the emergence of CPA.

We have a human problem here folks, not a
technical one.

Tinkering with the formulas all day long, or blaming
our customers for not having an interest in the
product we are selling, does nothing to address this
central obstacle to sales, in my wordy opinion...

Sincerely,
Phil

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







Received on Mon Nov 19 2001 - 21:09:11 CST