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Ever since 1905 when John Wannamaker, the founder of WalMart said, “I know that half of my advertising dollars are wasted, I just don’t know which half,“ it has been the merchant’s dream to make advertising dollars accountable.
Advertisers should no longer have to pay for intangibles like branding or ads on a search engine. Merchants shouldn't even have to pay for impressions or click-thrus, so there’s no guesswork about whether or not a marketing program or ad campaign is working....or if you are experiencing click fraud.
Commission based advertising, also known as performance based advertising, is a way by which merchant web sites can extend their audience reach and put their marketing dollars on a variable on sales instead of a fixed-cost basis or variable based off of potentially fraudulent ad clicks. Many merchants aren't aware of alternatives to the PPC ad campaigns they run and don't know about commission based advertising.
Merchants are 'brain washed' into believing the only way to reach customers is to pay and compete for ad space and hope their ad is clicked on by a customer who will purchase their product. Regardless, the search engine or banner host is paid, while the merchant takes a loss if the sale isn't made. Does this sound fair?
The concept is simple. The merchant and our company create a partnership that compensates us if an advertisement stimulates a sale. Compensation could be click-thru based (a fixed price is paid for each customer who clicks on the ad or link in a web site), lead based (for example, if the customer fills in a form to request more information), pay per sale or pay per recurring sale (a percentage of the lifetime value of the acquired customer). It depends on the results the merchant would like.
It’s all performance based, you simply pay upon results after securing a profitable transaction. Commission based advertising allows you to ‘buy’ paying customers for your site. The merchant in turn gets a low-cost sales channel, because the merchant would only have to pay for what sells, unlike ad campaigns found on Google, Yahoo or Microsoft Live search engines where merchants pay per click on their ads.
Increase your audience reach, improve your response rates and convert more sales. To understand the effect on the bottom line, we will compare your figures for banner advertising and performance based advertising. We have found that most large Internet retailers currently spend between $25 and $50 to acquire a new customer, an enormous amount compared with off-line retailers. This high cost is primarily a result of advertising on Internet with portals like Google, Yahoo, and Microsoft Live search engines to develop brand name awareness.
We offer a variety of commission based advertising programs as well as answer many of the common commission based advertising FAQs.
For additional information, please contact us at 406-210-0860.
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