NONE: Re: ONLINE-ADS>> Exclusive agreements with Ad sales agencies ?
Re: ONLINE-ADS>> Exclusive agreements with Ad sales agencies ?
Mark J. Welch, Esq. (markwelch_at_ca-probate.com)
Tue, 02 Sep 1997 12:57:02 -0700
At 02:40 PM 8/29/97 -0700, Don Dodge wrote:
>DoubleClick is requesting an exclusive for all ads sold on our website.
> Is this normal practice or is it negotiable ? If we sell ads directly
>why should we pay a commission ? What is the disadvantage to having
>multiple ad sales agencies selling ad space for a site ? If we must
>give an exclusive what if we give the exclusive for banner ads but we
>use a different agency for content sponsorships ? What is the normal
>range of commission percentages paid to ad sales agencies ?
In my opinion, signing an "exclusive" deal with any company is not
appropriate unless they guarantee a minimum level of sales (which
some will do for certain types of sites, though I doubt DoubleClick
would do so). Obviously, the ad rep is worried that they will go to
the effort of identifying and "selling" your site to an advertiser, only
to lose the commission to some third party. There are contractual
arrangements short of exclusivity to deal with this.
Some vendors have gone out and signed up a lot of sites on an
exclusive basis, and then made virtually no effort to sell ad space,
instead waiting for advertisers to come to them. Then, when the
site grows frustrated and sells its own ads or signs with another
network, the "exclusive" agency demands its share of the revenues.
(I have at least a dozen emails from web publishers involving two
companies that did this, although neither company has sued or
even sent an attorney demand letter to the sites.)
See http://www.markwelch.com/bannerad.htm for a list of
common-sense suggestions to consider when selecting an ad
representative, broker, or network.
-- Mark J. Welch, Esq. (510) 462-8483 http://www.ca-probate.com/
-- This message is NOT legal advice, and is NOT confidential.
-- Web Site Banner Ads and Web Counters: http://www.markwelch.com/
-- Small Office / Home Office Consumer: http://www.sohoconsumer.com/
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