Comments:
You hit the nail on the head - the sales force wants a base salary. Can you blame them? I am surprised that the pure pay-for-performance model has lasted this long. And I would hazard a (very educated) guess that most of the big players are already getting this in one way or another...out of network if they have to. I’m sure that will make networks sit up and take notice - money is changing hands outside of the cozy setup they have!
Indeed, Patrice. Some “affiliate networks” (i.e. Performics) realized this long ago. Other service providers like AvenueA and I’ll bet NetExponent are keen on it as well.
The real rub here is being an *agency* more than a highly scalable network. Not as much money in being an agency and it’s a long-term opportunity. Affiliate networks were, in my opinion, built to sell… and sell they have. Acquiring companies must now figure the rest out (i.e. ValueClick).
Thanks for the vote of confidence Jeff. NETexponent has been working hybrid deals with top performing sites for a long time. Once a site proves its value we are happy to compensated them fairly in a variety of ways. This can take the form of CPC, CPA, hybrid, minimums, flat fees, set-up fees, bonuses, in kind advertising.
The price that ad networks are being sold for these days is ridiculous. Some people say it is based on smoke and mirrors and that acquiring companies are in for a rude awakening.
I am happy to have a long term sustainable business that focuses on transparency and value based pricing.
Cheers