Re: Standard Split for Ad Networks

From: David Hammes, VP <dhammes_at_4internet.com>
Date: Mon, 11 Jan 1999 18:56:00 -0600 (CST)

STAN POLITI <SPOLITI_at_COMPCURR.COM> WROTE:
>Can anyone tell me what the 'standard' ad revenue split is
>between the parties involved? If there is no 'standard',
>what's the range?
>
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Here are a few thoughts:

BeFree and LinkShare are some of the networks who have the
technology to manage (3rd party) transactions and charge a
fee. The approximate split is from 7% to 10%, I believe, and
is worth it for someone else to manage and report stats.

The most effective way to determine this for your business
is by "doing the math" (as you probably know). What is the
value of the inventory and impressions you give up for an
affiliate? What is the value of one of the customers you
send to an affiliate (short term and the lifetime value)?
What are your costs to market your site (all promotional
overhead, etc.)? When you know how much it costs to acquire
a visitor/ customer, how much should you recieve in return
for acquiring the customer?

What is the value to your business?

These are a few factors and variables to look at.

David Hammes
dhammes_at_4internet.com


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Received on Mon Jan 11 1999 - 20:26:33 CST