Comments on: Special Report : Profit Sharing - The Performance Marketing Model of the Future http://www.vinnylingham.com/special-report-profit-sharing-the-performance-marketing-model-of-the-future.html Entrepreneur, Blogger, Speaker, Webaholic & Search Engine Guru Fri, 29 Aug 2008 19:00:00 +0000 http://wordpress.org/?v=2.6.1 By: Choosing Your PPC Business Models » PPC Blog by Gordon Choi - Effectively Managing and Optimising Paid Search Marketing Projects http://www.vinnylingham.com/special-report-profit-sharing-the-performance-marketing-model-of-the-future.html#comment-75507 Choosing Your PPC Business Models » PPC Blog by Gordon Choi - Effectively Managing and Optimising Paid Search Marketing Projects Wed, 26 Sep 2007 03:50:17 +0000 http://www.vinnylingham.com/2006/10/special-report-profit-sharing-the-performance-marketing-model-of-the-future.html#comment-75507 [...] Profit share is slightly different to revenue share. With profit share, it also requires great amount of trust in the relationship between both parties. The client will have to reveal not only the actual revenues but also the actual profits. Another benefit of the profit share model can be supported by one of the researches on Vinny Lingham’s blog. [...] [...] Profit share is slightly different to revenue share. With profit share, it also requires great amount of trust in the relationship between both parties. The client will have to reveal not only the actual revenues but also the actual profits. Another benefit of the profit share model can be supported by one of the researches on Vinny Lingham’s blog. [...]

]]> By: The Dunning-Kruger Effect and Search Engine Marketing http://www.vinnylingham.com/special-report-profit-sharing-the-performance-marketing-model-of-the-future.html#comment-71564 The Dunning-Kruger Effect and Search Engine Marketing Tue, 11 Sep 2007 18:06:15 +0000 http://www.vinnylingham.com/2006/10/special-report-profit-sharing-the-performance-marketing-model-of-the-future.html#comment-71564 [...] with the founder of a UK based SEM company, and asked him why he didn’t change his model to performance marketing, and not % of spend - his answer was that he simply would not make as much money. Ok - so instead, [...] [...] with the founder of a UK based SEM company, and asked him why he didn’t change his model to performance marketing, and not % of spend - his answer was that he simply would not make as much money. Ok - so instead, [...]

]]> By: Vinny Lingham’s Blog » Blog Archive » Linkshare Acquires Traffic Strategies http://www.vinnylingham.com/special-report-profit-sharing-the-performance-marketing-model-of-the-future.html#comment-43680 Vinny Lingham’s Blog » Blog Archive » Linkshare Acquires Traffic Strategies Tue, 05 Jun 2007 08:01:58 +0000 http://www.vinnylingham.com/2006/10/special-report-profit-sharing-the-performance-marketing-model-of-the-future.html#comment-43680 [...] often quote a research paper that we produced, on Profit Sharing (read: Affiliate Marketing) as the model of the future for managing paid search. We have used some very sound economic & mathematical calculations to derive at these [...] [...] often quote a research paper that we produced, on Profit Sharing (read: Affiliate Marketing) as the model of the future for managing paid search. We have used some very sound economic & mathematical calculations to derive at these [...]

]]> By: Vinny Lingham’s Blog » Blog Archive » Affiliate Summit West 2007 : Opening Session http://www.vinnylingham.com/special-report-profit-sharing-the-performance-marketing-model-of-the-future.html#comment-6529 Vinny Lingham’s Blog » Blog Archive » Affiliate Summit West 2007 : Opening Session Mon, 22 Jan 2007 19:03:19 +0000 http://www.vinnylingham.com/2006/10/special-report-profit-sharing-the-performance-marketing-model-of-the-future.html#comment-6529 [...] This talk reminds me a lot of the work we have published around Performance Marketing Profit Share. [...] [...] This talk reminds me a lot of the work we have published around Performance Marketing Profit Share. [...]

]]> By: Vinny Lingham’s Blog » Blog Archive » Vinny Lingham’s Top 10 Blog Posts of 2006 http://www.vinnylingham.com/special-report-profit-sharing-the-performance-marketing-model-of-the-future.html#comment-1604 Vinny Lingham’s Blog » Blog Archive » Vinny Lingham’s Top 10 Blog Posts of 2006 Mon, 13 Nov 2006 20:28:11 +0000 http://www.vinnylingham.com/2006/10/special-report-profit-sharing-the-performance-marketing-model-of-the-future.html#comment-1604 [...] Special Report: Profit Share - Performance Marketing Model of the Future [...] [...] Special Report: Profit Share - Performance Marketing Model of the Future [...]

]]> By: Rhianna http://www.vinnylingham.com/special-report-profit-sharing-the-performance-marketing-model-of-the-future.html#comment-153647 Rhianna Sat, 14 Oct 2006 04:54:24 +0000 http://www.vinnylingham.com/2006/10/special-report-profit-sharing-the-performance-marketing-model-of-the-future.html#comment-153647 Vinny, <br><br>Your endorsement (i.e. you wrote: "I have been a huge advocate of ...") as "an extension of the merchant themselves ..." is in contrast to Carsten Cumbrowski's <a>Affiliates are not an extended Sales Force</a><br>Both opinions are interesting and worthy of consideration.<br>I believe that Affiliates whether part of a larger, organized group, or whether independent thrive on an independent freedom that could not exist if the Affiliates were an extension of a merchant's sales force. Being an extension of a merchant's sales force also implies exclusivity but one Affiliate may promote and market a merchant and that merchant's competition. As an independent (small) marketer through the websites I create and maintain, I like to sell "gizmos" and as long as I sell a "gizmo" from one of my sites, it doesn't matter to me what merchant is selling the "gizmo" as long as I get the commission. There are times when I will put two links for a certain item or 2 links for separate but similar items on the same web page -- it doesn't really matter to me whether Merchant A makes the ultimate sale or Merchant B unless one of those merchants has a track record for paying me more (in that case, I usually focus my energy on the merchant who pays more). <br><br>In terms of Clicks2Customers search marketing, would your company really wish to be an "extension of the merchant themselves" to the extent that the merchant has control over your company? Do you see your company as a Franchise of the Merchant exisitng underneath a Merchant's umbrella? Probably not, but I wonder how eager Merchants will be to engage in a contract of profit sharing when they are used to paying a stated fee/commission? <br><br>I enjoyed reading all the comments & the links embedded in the comments!<br>Andreas Reiffen produced a fine study :-) Vinny,

Your endorsement (i.e. you wrote: “I have been a huge advocate of …”) as “an extension of the merchant themselves …” is in contrast to Carsten Cumbrowski’s Affiliates are not an extended Sales Force
Both opinions are interesting and worthy of consideration.
I believe that Affiliates whether part of a larger, organized group, or whether independent thrive on an independent freedom that could not exist if the Affiliates were an extension of a merchant’s sales force. Being an extension of a merchant’s sales force also implies exclusivity but one Affiliate may promote and market a merchant and that merchant’s competition. As an independent (small) marketer through the websites I create and maintain, I like to sell “gizmos” and as long as I sell a “gizmo” from one of my sites, it doesn’t matter to me what merchant is selling the “gizmo” as long as I get the commission. There are times when I will put two links for a certain item or 2 links for separate but similar items on the same web page — it doesn’t really matter to me whether Merchant A makes the ultimate sale or Merchant B unless one of those merchants has a track record for paying me more (in that case, I usually focus my energy on the merchant who pays more).

In terms of Clicks2Customers search marketing, would your company really wish to be an “extension of the merchant themselves” to the extent that the merchant has control over your company? Do you see your company as a Franchise of the Merchant exisitng underneath a Merchant’s umbrella? Probably not, but I wonder how eager Merchants will be to engage in a contract of profit sharing when they are used to paying a stated fee/commission?

I enjoyed reading all the comments & the links embedded in the comments!
Andreas Reiffen produced a fine study :-)

]]> By: Rhianna http://www.vinnylingham.com/special-report-profit-sharing-the-performance-marketing-model-of-the-future.html#comment-663 Rhianna Fri, 13 Oct 2006 23:54:24 +0000 http://www.vinnylingham.com/2006/10/special-report-profit-sharing-the-performance-marketing-model-of-the-future.html#comment-663 Vinny, Your endorsement (i.e. you wrote: "I have been a huge advocate of ...") as "an extension of the merchant themselves ..." is in contrast to Carsten Cumbrowski's <a>Affiliates are not an extended Sales Force</a> Both opinions are interesting and worthy of consideration. I believe that Affiliates whether part of a larger, organized group, or whether independent thrive on an independent freedom that could not exist if the Affiliates were an extension of a merchant's sales force. Being an extension of a merchant's sales force also implies exclusivity but one Affiliate may promote and market a merchant and that merchant's competition. As an independent (small) marketer through the websites I create and maintain, I like to sell "gizmos" and as long as I sell a "gizmo" from one of my sites, it doesn't matter to me what merchant is selling the "gizmo" as long as I get the commission. There are times when I will put two links for a certain item or 2 links for separate but similar items on the same web page -- it doesn't really matter to me whether Merchant A makes the ultimate sale or Merchant B unless one of those merchants has a track record for paying me more (in that case, I usually focus my energy on the merchant who pays more). In terms of Clicks2Customers search marketing, would your company really wish to be an "extension of the merchant themselves" to the extent that the merchant has control over your company? Do you see your company as a Franchise of the Merchant exisitng underneath a Merchant's umbrella? Probably not, but I wonder how eager Merchants will be to engage in a contract of profit sharing when they are used to paying a stated fee/commission? I enjoyed reading all the comments & the links embedded in the comments! Andreas Reiffen produced a fine study :-) Vinny,

Your endorsement (i.e. you wrote: “I have been a huge advocate of …”) as “an extension of the merchant themselves …” is in contrast to Carsten Cumbrowski’s Affiliates are not an extended Sales Force
Both opinions are interesting and worthy of consideration.
I believe that Affiliates whether part of a larger, organized group, or whether independent thrive on an independent freedom that could not exist if the Affiliates were an extension of a merchant’s sales force. Being an extension of a merchant’s sales force also implies exclusivity but one Affiliate may promote and market a merchant and that merchant’s competition. As an independent (small) marketer through the websites I create and maintain, I like to sell “gizmos” and as long as I sell a “gizmo” from one of my sites, it doesn’t matter to me what merchant is selling the “gizmo” as long as I get the commission. There are times when I will put two links for a certain item or 2 links for separate but similar items on the same web page — it doesn’t really matter to me whether Merchant A makes the ultimate sale or Merchant B unless one of those merchants has a track record for paying me more (in that case, I usually focus my energy on the merchant who pays more).

In terms of Clicks2Customers search marketing, would your company really wish to be an “extension of the merchant themselves” to the extent that the merchant has control over your company? Do you see your company as a Franchise of the Merchant exisitng underneath a Merchant’s umbrella? Probably not, but I wonder how eager Merchants will be to engage in a contract of profit sharing when they are used to paying a stated fee/commission?

I enjoyed reading all the comments & the links embedded in the comments!
Andreas Reiffen produced a fine study :-)

]]> By: Vinny Lingham http://www.vinnylingham.com/special-report-profit-sharing-the-performance-marketing-model-of-the-future.html#comment-153646 Vinny Lingham Thu, 12 Oct 2006 18:44:48 +0000 http://www.vinnylingham.com/2006/10/special-report-profit-sharing-the-performance-marketing-model-of-the-future.html#comment-153646 Don't get me wrong, managing a small keyword set for an average SME (10,000 keyword +-) is easily achieved by using the Google interface, and will most likely be about 80% efficient if there is at least 1 person dedicated to the campaign. The issue is managing hundreds of thousands of keywords. Also, if a merchant sells more than 1000 items, it no longer becomes feasible to have only 1 person in-house. We find that our best campaigns are ones where the merchants have either under-resourced their paid search team, or allocated to an agency that does not have enough people or their own technology to manage the load. That's where performance marketing becomes supplemental.. Don’t get me wrong, managing a small keyword set for an average SME (10,000 keyword +-) is easily achieved by using the Google interface, and will most likely be about 80% efficient if there is at least 1 person dedicated to the campaign. The issue is managing hundreds of thousands of keywords. Also, if a merchant sells more than 1000 items, it no longer becomes feasible to have only 1 person in-house. We find that our best campaigns are ones where the merchants have either under-resourced their paid search team, or allocated to an agency that does not have enough people or their own technology to manage the load. That’s where performance marketing becomes supplemental..

]]> By: Vinny Lingham http://www.vinnylingham.com/special-report-profit-sharing-the-performance-marketing-model-of-the-future.html#comment-153645 Vinny Lingham Thu, 12 Oct 2006 18:41:05 +0000 http://www.vinnylingham.com/2006/10/special-report-profit-sharing-the-performance-marketing-model-of-the-future.html#comment-153645 Sorry about that Carsten - my comment spam filter caught it - it's been released, above. Thanks. Sorry about that Carsten - my comment spam filter caught it - it’s been released, above. Thanks.

]]> By: Jean-Marie Le Ray http://www.vinnylingham.com/special-report-profit-sharing-the-performance-marketing-model-of-the-future.html#comment-153644 Jean-Marie Le Ray Thu, 12 Oct 2006 14:01:22 +0000 http://www.vinnylingham.com/2006/10/special-report-profit-sharing-the-performance-marketing-model-of-the-future.html#comment-153644 Hi Vinny,<br><br>Really good thoughts indeed, but reading it my belief is that search marketing as you describe it is reserved only for big corporates with large budgets. So if you were asked to quantify the necessary investment budget for SMEs, what would be your estimatation about?<br><br>Jean-Marie Hi Vinny,

Really good thoughts indeed, but reading it my belief is that search marketing as you describe it is reserved only for big corporates with large budgets. So if you were asked to quantify the necessary investment budget for SMEs, what would be your estimatation about?

Jean-Marie

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