Meet Greg Shepard.  Greg is CEO of managed affiliate solution provider, NetTraction.com and he’s pitching a new approach called “Cost-Plus-Performance.” Well, it’s not really new of course but when viewed through a more “traditional” marketing lens it’s clearly out-of-the-box. 

Why the new model?
Shepard and his team are, likely, onto the increasing (read: pent up) demand coming from advertisers who engage in old-style affiliate marketing strategies.  Specifically, they want to work in more creative ways with affiliates.  Why?  Affiliates that command unique audiences are demanding it.  The “virtual sales force” is asking for a base salary.

As Shepard says…

“... now there is a way for merchants to now offer a win-win, where both merchants and affiliates have a vested interest. Improving technologies now make it possible for the formerly CPS, CPA, CPL performance programs and the CPM, CPC and flat advertising models to unify creating a new hybrid that I call the Cost-Plus-Performance model.”

What new technologies? 
Well… probably not those of Linkshare, Performics, Commission Junction and the more well-known affiliate marketing networks who seem forever locked into stagnated, in-flexible platforms.  Indeed, such networks have partnered with the likes of Omniture and other Web analytics solutions but this offers little help to advertisers that yearn for flexible payment arrangements with affiliates like FatWallet.com and other powerhouses who have more to offer advertisers… or who are not satisfied with a “pure CPA” relationship.  Currently, if an advertiser works with an affiliate solution provider that only facilitates tracking and reporting on “pure CPA” relationships, a solution must be cobbled together… a situation that the folks at Mercent seem to have their eyes on as well.

So… what does NetTraction have to offer and what about more flexible solution providers like Kowabunga?