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  1. #1
    Newbie
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    January 17th, 2005
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    1,537
    CPM Affiliate Network Idea. What Do You Think?
    Yesterday, we had a meeting with some 'players' with money to invest, good connections to some VC people, who have big time net experience, about putting together an online ADVERTISING Network based only on CPM.

    The affiliate program will be based on

    1. A percentage of the sale of CPM based links - banners or text. The consensus was 20% payout depending on order size.

    For example: You sell Geico $100K worth of banner impressions, you make $20K.

    2. Rates will be $5/CPM for USA Impressions. $4/CPM for International
    Impressions. These were the consensus idea of how to get the best balance of revenue and produce the best value for the merchants or business.

    The big sticking point was who should be allowed to spin the banners and how much should they earn. The options:

    1. Regular affiliate program that pays $1 to $2/CPM for every spin segretated by geography, with tight fraud and affiliate entry restrictions.

    2. Charge affiliates a minimal fee to join the program and limit the number of affiliates by an entry fee or set up fee.

    3. Pay affiliates a slotting fee against the traffic count. Affiliates get a
    flat fee of X amount to post the banner rotator ... and must generate Y amount of unique traffic to get paid.

    4. Run the banners and text links on Network controlled pages and pay affiliates a per click. Use SEO to generate traffic to specific pages.

    You task is to come up with a better way or point out which one you think would work best for EVERYONE, not just you.

    The problem is a delivery problem, not a get the ads problem or get the money to do the thing problem.

  2. #2
    ABW Ambassador
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    January 18th, 2005
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    2,420
    2. Charge affiliates

  3. #3
    Moderator MichaelColey's Avatar
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    January 18th, 2005
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    Mansfield, TX
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    16,232
    Why not just find 1000 of those "1 million hits for $1" sites and use those to generate traffic and sales? What do you need affiliates for?

    If I sign up for your affiliate program, will you pay me a CPC rate even if my traffic is all bogus... I mean... If my traffic doesn't convert for you?
    Michael Coley
    Amazing-Bargains.com
     Affiliate Tips | Merchant Best Practices | Affiliate Friendly? | Couponing | CPA Networks? | ABW Tips | Activating Affiliates
    "Education is the most powerful weapon which you can use to change the world." Nelson Mandela

  4. #4
    Full Member snappy's Avatar
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    February 21st, 2009
    Location
    Palm Bay Florida/Portland, Oregon
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    387
    Net4Biz? Why do you want to fail? Charge affiliates? Now tell me w/ a model like yours and a new company why would affiliates put money into something? Way too many companies out right now "new" and "old" manning it to their affiliates, why would anyone pay you?
    I attract success and abundance into my life because that is who I am.

  5. #5
    Newbie
    Join Date
    January 17th, 2005
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    It didn't say any affiliate would have to pay to be on the receiving end of the CPM but that it was one option. I doubt we will go that way ... but it was brought up.

    As for having affiliates ... post the banners on their site ... it's not necessary. The affiliate program to sell the CPM is already in place, so why change it ... all we have to do is put up the details.

    Sure Mike, I'll pay you CPC for traffic as long as it's a REAL person and not a bot. It's up to me to make it pay not you. There is NO FREE LUNCH on the net.

    Of course I will have to ban your site like Google did, if you use those same black hat tactics to game the system that got you kicked out.

    What you fail to understand is that as long as you make more per visitor than it costs you - the traffic is good. And not everyone is a buyer at the exact time they see your ad or go to your page. BRANDING is not necessarily about immediate sales.

    I am sure that 99% of everyone who goes to Yahoo homepage does not buy anything.
    Yet Yahoo charges $12/CPM for that 300x250 banner in the upper right hand corner ...
    and people pay it.

  6. #6
    Affiliate Manager Micker's Avatar
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    November 24th, 2008
    Location
    Ottawa, Canada
    Posts
    113
    From an advertiser's perspective, CPM is not very attractive in today's economy. CPM can't be tied back to ROI very well, so it's one of the first forms of advertising to be cut. It's getting so bad that we've switched some CPM players to display CPA banners.
    Mick Kitor

    Affiliate Manager
    [URL="http://www.getresponse.com/partners-affiliates"]GetResponse[/URL] | [URL="http://www.clickmeeting.com/"]ClickMeeting[/URL] | [URL="http://www.clickwebinar.com/"]ClickWebinar[/URL] | [URL="http://www.implix.com/"]Implix[/URL]

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