Re: Payment on Conversion

Bruce Milligan (bruce_at_boone.net)
Fri, 6 Sep 96 17:03:46 -0400

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In his message, Robert Grosshandler wrote:

>If this works, successful sites would make more money than they would
>on a per impression, or per clickthrough basis, but, there would be no
>guarantees. It would allow me to accelerate the launch of this
>product much more quickly than any other method available to me.

I encourage you to try this if you want, Robert. We're still in an age
of experimentation, and there obviousy are no hard and fast rules yet.
Keep in mind that the offer to purchase your product probably should have
something to do with the topic interest of the people surfing the site
where you "advertise". As a completely absurd example, I don't think it
would be worth your time to promote farm implements on a page dealing
with Religion & Philosphy.

It seems that what you're doing is asking the other sites to become your
sales agents -- and as such, they should get a commission, right? And so
you propose to give them just such a commission. But you'll have to be
willing to justify to every single site that the money they get from the
commissions you pay will make it worth their while to do business with
(for?) you. Some sites may like the deal, others may not. It's kind of
like approaching a consignment shop that I might own: If I don't think I
can sell enough of the product to cover my administrative costs and the
value of my floor/shelf space, then I'm not going to accept your deal.
And if they don't like your product enough to become your "agents", then
they may say no on that basis.

One more related idea: It's getting harder and harder to do busines in
this online advertising industry without offering guarantees. Most
advertisers are now demanding guaranteed audience delivery, and
(therefore?) most media outlets with ad inventory are selling on the
basis of guaranteed audience delivery.

It will be an interesting test, if you decide to do it. Please let this
list know how it goes if you do, so we can learn and hopefully give you
more ideas to bolster your success. And if you decide not to do this,
then I bet we can learn from your rationale there, too. Thanks, and good
luck.

-bruce milligan

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