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  1. #1
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    On December 31, if all goes well, we will be launching our new Targeted Ad Network.

    The affiliate portion will be hosted by clixGalore. They will be making the payments, doing the tracking and spinning the links.

    Affiliates will be paid 3 cents per click plus they will get 5% of the monthly income from all affiliates they refer.

    Afiliates will be sending traffic to targeted category pages. Each page will have only 7 ad listings combining text and a banner for each advertiser.

    The cost to advertisers will be $10 CPM on a first come first served basis with minimum of 100,000 impression purchase.

    There will be 20 various category pages to promote which we will roll out two at a time.

    We are starting out with 18,000 affiliates plus a good portion of our 6,500 CJ affiliates and over 100 ezine publishers as affiliates

    We expect a minimum of 200,000 page views per targeted category page per month with the more popular categories approaching one million per month.

    The only traffic restrictions are for rewards and incentivized game sites.

    If you are an advertiser it's first come first served per category - the maximum purchase at any one time for any single category is 1 million impressions for $10k.

    All payments must be prepaid. Ad agencies may purchase no more than three ad slot listings per category.

    The first four targeted pages will be:

    Computers, Periperals & Software
    Jobs, Employment and Education
    Personal Finance, Insurance & Investing
    Games, Entertainment & Electronics.

    The next four will be:

    Shopping, Gifts & Gourmet
    Home, Garden & Leisure
    Sports, Crafts & Hobbies
    Health, Wellness & Nutrition

    The next four will be:

    Books, Music & Movies
    Travel, Hotels & Cruises
    Spas, Cosmetics & Fashion
    E-Commerce, Web Design & Hosting

    Compared to a PPC listing on Overture.
    Advertisers get limited competition -
    only 7 listings versus 40. The click thru
    rate per viewed ad can approach 20% of the
    gross pageviews of each targeted page category.

    Within 90 days we expect to generate over 1 million pageviews per month on some of our category pages.

    If you are an ABW member and an advertiser, you get first crack at an ad listing. Just send me an email and we will contact you.

    More will be posted Thrusday.

    Merry Christmas.

    Fred

  2. #2
    ABW Founder Haiko de Poel, Jr.'s Avatar
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    January 18th, 2005
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    New York
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    21,609
    Fred,

    $10 CPM (WOW that is high!) and $0.03 per click to affiliates?

    Isn't this just a traffic "churning" program?

    What can an advertiser expect from it?

    Haiko

  3. #3
    ABW Ambassador
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    Haiko,

    I was thinking the same thing.

    Fred,

    What will it do for my site?

    Mike

  4. #4
    Resident Genius and Staunch Capitalist Leader's Avatar
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    January 18th, 2005
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    Yeah, that'll take more of a sales pitch! I'm sure I could sign up for ClixGalore myself cheaper. If Clix WASN'T cheaper, then you wouldn't be getting a profit!

  5. #5
    ABW Ambassador
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    January 18th, 2005
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    West Coast USA
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    >Compared to a PPC listing on Overture.
    Advertisers get limited competition -
    only 7 listings versus 40.

    I tend to think in terms of where the listings are seen.
    Top 2 or 3
    I don't compete with 7

    The last Million impresions we bought back in July were at $1 CPM on a travel site.

  6. #6
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    Everyone is a commedian.. [img]/infopop/emoticons/icon_smile.gif[/img] [img]/infopop/emoticons/icon_smile.gif[/img]

    Let's look at the way stuff really works and not at how you all 'think' it works.

    First: The competition. BeFree, Snare, CJ, etc. charge merchants a monthly fee. Last I looked it was $2,000/month for Snare. Plus a set-up fee, $5,000 to simply be on the system and get your links and banners spun on whatever affiliate sites you can get them on with NO guarantee of anything, plus you are competing with 1,500 other merchants for affiliate ad space. The click thru rate on Snare is 1% or less.

    Compare Us with Snare.
    On our new system, you compete with just 7 per page and the links bringing tr4affic to the page your ad is one are all targeted. Plus some of the 7 may not quite be in the same niche. You get 200,000 impressions for $2,000 and reasonably targeted traffic to view your ad. Your ad is a combo text and banner. In the tests, we ran, the average click thru from even junk traffic was 4.3%.

    If we sell all 7 slots we in effect make $70
    per thousand. Paying 3 cents per click plus the cost of ClixGalore costs $37.50 per thousand. Paying people to sell the ads costs $15. We make a gross profit of $17.50
    per 1,000 out of which we have to pay the cost of running the business and make a profit.

    200,000 impressions times 4.3% equals 8,600 click thrus. If you got 8,600 click thrus from Snare affiliates your cost would be $.23 per click thru based on your $2,000 monthly fee.

    And the bad part is there is no guarantee your affiliates will make a dime. If they don't you can bet you will see a declining number of clickthrus every month.

    Compared to PPC searchengines. It's like being guaranteed one of the top 7 slots. What's the cost of being one of the 7 for say Computers, Pheriperals & Software. In November Computers were searched 1,231,384 on BendOver. The cost per click ranged from $.77 for #1 to $.37 for number 7. For $2,000 on our system, number one would need to get 2597 click thrus to equal the same dollar amount as getting over 8,000 click thrus on our program. Number 7 would need 5,405. So the advertisers get 50% to more 200% more
    clicks for the money.

    Heck, Gevalia is paying $.92 per click on BendOver and coffee only did 77,331 searches.
    $2000 would only get slightly more than 2,000 click thrus here and less than 50% of the impressions.

    All in all, our pricing is beyond fair.

    Now $10CPM would be really high if you were talking about having the top banner on a run of the mill webpage, but on targeted pages with high traffic, it's fair.

    You have to compare what it costs to get the traffic from other places.

    And if you get a 15% click thru rate which is possible then our prices offer real value.

    And one other thing, you can't pay CPM to affiliates because their job is to funnel traffic to merchants, not spin banners. But CPM on targeted pages is the only fair way to do it.

    CPA would work if it were set up against a
    guaranteed per click but then it would be hard to control because you have to wait for the money.

    This setup is the only one that's fair for all.

    Now a merchant could go direct to ClixGalore, but then what are they going to pay. If they pay 3 cents per click they are paying $30 per thousand clickthrus plus costs and there is no guarantee it's anywhere reasonably targeted.

    Now suppose our affiliates send 1 million
    visitors to our targeted Computer page. It
    would cost the merchant $10,000. This amount is about what people pay for a single 1/4 page ad a major computer magazine with similar viewership.

    Now, try this: Suppose you are a merchant and set up a specific deal page with a call 800# to buy it, and you pay us $10k to get the ad viewed by 1 million. If it were direct mail, you'd have to pay, $170,000 just for the stamps. Suppose you get 4% click thru and you sell 1% of that because you know how to sell and write copy - you get 40,000 to view your offer. You make 400 sales. It cost you just $2.50 per sale.

    If you can right good compelling copy and use the banner to do the same, you can make some good money.

    It will work and work well, it just will take some selling to get it started.

  7. #7
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    There is no free lunch...we are in to make a profit. Our set up is similar to direct mail for 95% less.

    A merchant could go to ClixGalore and signup
    and do the same thing but to compete with us for traffic he'd have to pay at least 3 cents per click thru. It's hard to do that and make a profit unless the deal is first rate and you can control the incoming traffic. Also, people tend to click on generic based links as opposed to banners.

    For example: "Click Here To Learn About Some Great Deals On Computers, Pheriperals and Software" will get double or triple the click thru rates as a banner for say Dell.
    Now when the person gets to our page, he/she
    gets to read both a text ad and banner for 7
    merchants and he now has the choice to go where he has an interest. With our set up more people will click thru to the merchants because they aren't forced to do so. If Dell has compelling copy and a good banner they will get a visitor to their offers.

    And the real power is that with our set up a merchant can focus a single offer page for only $1,000 and get 100,000 to see the ad and offer. They can test ads and deals to see what works and what doesn't.

    Individual product or service offers will be a big part of what is advertised.

    For example: You have a single page sales set-up for some product or service. It cost you $1,000 to get a targeted 100k to view the ad. You get 5% to go read all about it. You sell 5% of those. 5,000 actual visitors read your full offer. You sell 5% of those - you make 250 sales. Cost $4/sale. Now it all depends on the price you charge to determine your profit, if any.

    In any case, the traffic is all paid for and
    you can put a hard number on your cost per sale. You get branding, click thrus and targeting and we have the fraud part totally
    covered.

    Now with PPC if you can get a top 7 listing for less than $.20 you might be able can beat this senario, provided you can get 5,000 click thrus.

    You could run your own program and pay 3 to 10 cents per click but would it be targeted.

  8. #8
    ABW Founder Haiko de Poel, Jr.'s Avatar
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    Fred,

    It still looks like traffic churning to me!

    How are the "clickers" targeted traffic? The only target they have is the $0.03 per click nothing else!

    Anyone can buy 100,000 hits to their site for around $100! What will the result be? --- Nothing!

    Haiko

  9. #9
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    So don't buy any listings, Haiko.

    Continue getting the shaft from Snare & BeFree and CJ (though not as bad).

    And most important - what are the alternatives? And at what price? Is it doable, profitable, scaleable?

    And Dave's right. Anyone can go do it. It's not rocket science. Problem is, you have to pay in advance for the priviledge and then
    sweat out collecting from the advertisers who
    make you the money to pay the affiliates.

    As for traffic 'churning,' that's what a network of locations to visit is all about.
    Getting traffic to view your site, make a purchase or a click out that pays you when they go to the next link in the chain.

    If affiliates don't get paid or make money you don't have a viable online business once you get past the individual one man show.

    The question is not how much it costs but how profitable is it? If you made $100 per day and you can do it paying $10 per day - you spend the $10. If it costs $95 to make the $100, you might not play but then again it is a profit, so you still might play. Depends upon the alternatives you have to choose from and the competition.

    Another problem you fail to comprehend is scale. GE owns NBC. They also own GE Medical Imaging. The Medical Imaging makes 10 times more money than does NBC. Now NBC is a big deal but to GE it's just a low level profit center.

    Getting 100 targeted clicks per month from a keyword on BendOver that makes you $20 for the $5 it costs is really worthwhile if you
    are a low overhead one man show. But it is not worth your time if you are a corporation with even 10 employees.

    But, if you have an ad budget of $10 million,
    and you can get 1 million even somewhat quality impressions for $10k you buy the deal. Because, the price is right relative to what you can buy eleswhere. And what you are interested is in the total mix from all channels.

    I only need to sell 7 deals and that won't be hard to do.

    And it only takes one sale to trigger the other 6 sales. It's like the reason why the Bulls paid Michael Jordan $32 million per season to play for them - so he wouldn't play for the Lakers and the Bulls would win the championship not the Lakers.

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