NONE: Re: ONLINE-ADS>> Ad Banner Payment Methods
Re: ONLINE-ADS>> Ad Banner Payment Methods
Brian Coryat (brian_at_web-ignite.com)
Tue, 09 Sep 1997 08:28:50 -0700
>Subject: Re: ONLINE-ADS>> Ad Banner Payment Methods
>
>At 11:05 AM 9/8/97 -0400, Jeff Freeburg wrote:
>> How do other sites arrange for payment from advertisers or
>> other business-to-business sponsors?
As with most things on the net there are not yet any standards set. Here
are your options as I see them:
1) [Bill Net-30] All large sites such as Lycos, Yahoo, etc bill on a net-30
basis. You usually will not have to pay until about 45 after your ad starts
running. The benefit to this method is that many fortune 1000 companies and
large institutions have an accounts payable system that makes it very
difficult to pay anything in advance. The disadvantage of this is that you
can almost count on getting screwed on occasion by disgruntled or broke clients.
2) [Ask for 50% up front] Some smaller and medium size sites ask for 50% up
front and 50% at a later time. Usually 30 days or at the termination of the
contract. The advantage of this method is that at least you won't *lose*
money when a client decides not to pay you. The disadvantage is that it
will make it difficult for some companies and ad agencies to advertise with
you because of a accounts payable policy of not paying for anything in advance.
3) [Ask for 100% up front] This is what we require for advertising on our
ValueClick Banner Advertising Network. Of course, we charge as little as
15-cents per click-through so the larger companies are willing to jump
through some bureaucratic loops to take advantage of our pricing. Keep in
mind that an ad agency or company may not want to send a 100% payment to
anyone they have not heard of.
4) [Depends on the client] This is very tough to do, at least it was for us
whenever we tried it. The problems found are mostly logistical in nature.
Who is a good credit risk, who is not, where do you draw the line? How do
you tell a potential client that he has to pay up front when he already
knows that you bill net-30? Most importantly, where do you find the
bookkeeping genius that can keep track of several different payment methods.
5) [Turn your traffic over to a network] This is by far the simplest hands
off option available. You will not have to deal with sales. You won't need
to upload banners at a clients whim. No collections problems (if you choose
a legit network). The disadvantage of this method is that you won't get
paid as much since the network needs to take their cut as well.
6) [make up your own method] Remember, this is the net. We are all
pioneers, making it up as we go along. Just because it has not been done
does not mean that it can't be.
=================================================================
Brian Coryat, President/CEO (805) 965-0543
AAA Internet Promotions / Web Ignite Corp / ValueClick
** Pay just 15-cents per click through! http://valueclick.com **
=================== brian_at_web-ignite.com ======================
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