Mark's dilemma

From: Andrew Bourland <andy_at_bourland.com>
Date: Fri 25 Jan 2002 09:43:19 -0500

On 1/24/02 "Mark Hopkins" <mark.hopkins_at_powerpackedads.com>
wrote:

> PowerPackedAds.com is all about letting almost anyone
> produce much more effective ads. It's not about
> complaining that people don't pay high CPMs,
> it's just trying to do something about it.
>
> I've set up affiliate programs before, but I thought it
> would make more sense to do this as advertising/CPM
> because of the product. But, maybe you're right Scott,
> and my expectations were not realistic. Perhaps I and
> every other business should forget it and go CPA.

Mark,

Wanting to look at this from YOUR side, I went to your site
at powerpackedads.com

I can understand the challenge you are up against. $28 for
an ad solution doesn't lend itself to a healthy affiliate
or CPA payment for a publisher (the only places that will
really reach the people you need to reach will probably NOT
accept CPA or affiliate ads, so you're outta luck).

And if you did a CPM deal, you would have to sell roughly 36
units to break even on a $1000 CPM buy.... Which is kinda
doubtful.

This reminds me of my early days when we (we being
DaveCentral.com) tried to put something together for WinZip
(sale price $29) and basically, there was almost no way we
could put together a deal that would help him reach his
objectives while making a deal that would be worth our while.

My only thinking at this point is that the price point would
have to be greater to make it worth the trouble, or it has
to lend itself to a whole bunch of repeat buys to make it
worth yours.

Anybody else here know what could be done to create a win-win
solution for someone wanting to advertise and sell a $28
product online?

Andy
--
Andrew Bourland
http://www.bourland.com
Monitoring the shift from Free to Fee
Currently on Bourland.com:
* SexBlogs.com and Blogger.com
* Jakob Nielsen, JupiterMMXI, Technology Review
* AmericanGreetings.com, Salon Premium and Northern Light







Received on Fri Jan 25 2002 - 08:43:19 CST