How It Works

Why the Bungee Bones Peer Reviewed Directory Works

Commission And Paid Link Pricing

Throughout the history of the Internet there have been a number of different models of how advertisers would pay. In the early days websites would supply their traffic figures and irregardless of which traffic counting standard was followed (i.e. unique visitors, page impressions, click, etc) an advertising fee was determined in a manner quite similar to brick and mortar advertising standards. Newspapers and magazines use their circulation numbers to determine their rates for example. Television uses "Nielsen Ratings" and radio uses listener surveys.

But the Internet seems to always have had a problem coming up with a suitable standard by which to measure the advertising value of any particular website. The best system developed, so far, seems to be the Pay Per Click system. One significant benefit of PPC is the fact the results are easy to track and adjustments can be instantly made to an ad campaign. If a particular keyword does does bring sales it can be dropped in favor of a more successful one. The one serious drawback to PPC however has been its susceptibility to click fraud. Though a conscientious advertiser who tracks his PPC campaigns will be looking at the return on investment of his advertising dollar and won't really be too affected by click fraud it is still a little unnerving to know a percentage of the clicks paid for are not legitimate. A new move is being attempted to move more to a "Pay Per Action" payment system as a result of click fraud.

COMMISSIONS

BungeeBones commissions, which is the basis by which our webmasters get paid, can most closely be categorized as a Pay Per Action system. Webmasters who host one of our directories on their site will be compensated for every "action" taken to purchase a paid link from their website. Either a site is a paid link or a free link. There is no where to hide and no opportunity for fraud. It is a fairly straightforward system.

PRICING

BungeeBones' prices are determined by our auction system, with webmasters bidding against each other for placement in a manner similar to Pay Per Click. Directories have, traditionally, stuck with a flat fee system and charged the same irregardless of the categories popularity.

BungeeBones pricing goal, then,  is to have each category's price rise or lower based on its demand. Categories related to LAW for example will sell for a higher price than those related to Little League Baseball. Accurate pricing of the innumerable possible categories would be an enormous task. Not only would it consume a large amount of resources it would be extremely difficult to price it accurately.

While Pay Per Click pits one webmaster against another in an auction system to arrive at its prices, BungeeBones' goal is to provide incentives for website owners/managers to take an active role in their link management (again, similar to Pay Per Click). Through the auction system they will be presented the option toeither pay the category price and remain in the category or to login to their control panel and move their listing to a new category. If they default in their management BungeeBones will move it from the category into a generic subcategory (named "Bungeed Sites").

 

What do sites give up by not being in the paid program? Because each directory site decides whether to display free links or not and, if so, for how long, then free link sites miss out on the incoming traffic from the members who elect not to send traffic to free links (but send it to paying members).

How Much Will You Make With Bungee Bones?

For you to figure out the answer to that question let us start by looking at what is perhaps the largest human edited directory there is, a  service called "DMOZ". DMOZ, also called the "Open Directory Project"  describes itself like this "The Open Directory Project is the largest, most comprehensive human-edited directory of the Web. It is constructed and maintained by a vast, global community of volunteer editors". DMOZ is a volunteer organization. It lists sites for free (as do many of the search engines).

Currently DMOZ reports its usage at over 4 million sites - 74,719 editors - over 590,000 categories.

Let's look at some of the companies that charge for providing traffic. The old style of paying for traffic was pretty much pioneered and dominated by Yahoo. The growth of Yahoo was quite rapid. This fact is even more remarkable when you consider that Yahoo started (see their history here) in 1994 from a college dorm trailer when the Internet was just hatching. Yahoo used to charge nearly $300 to be listed at its peak and it didn't even guarantee a ranking. Yahoo reports billions of pages in its index but there are usually multiple pages in their index from a site so I'm guessing perhaps a billion websites (just a guess). Today you can get your site indexed by Yahoo for free as they have pretty much been forced to abandon the paid inclusion model for the Pay Per Click model as we will discuss next.

The premier name in Pay Per Click is Google. now the second largest internet company, most people think of Google as a search engine. But the source of their income is all those ads they place on the sides of millions of websites. When you click on one of those ads, and get taken to that website, that company pays Google for bringing you to them. The companies pays Google an amount they had agreed to through a bidding program based upon keywords. The grease that moves this massive advertising is the fact that Google shares all that income with the websites that post the ads and who deliver the clicks.

Google is by far the largest search engine. I couldn't find any numbers but the biggest number of returned pages for a search term was over 300 million but that is just one term.

We can also take a look at the number of  new domains that are being registered. According to Verisign's report "According to the report, 4.6 million new domain names were registered in the second quarter of 2004, representing a 2.5 percent growth over the first quarter, 2004. In all, worldwide domain name registrations reached a peak of 64.5 million domain names, a 7 percent increase over end of year 2003."

So we have 65 million new sites a year to get indexed, plus the billions of existing ones. How many of these you get as your downline determines how much you make.

Here is a chart that illustrates how much you would make if you got ten websites to register in the directory from your website and if they got ten more each and those got ten more each etc.

Level	# of total sites in your downline	# of new sites enrolled per site	Price Paid (through auction)	Total income per level to the #1 upline*	Percentage of the price Level 1 receives at each level
You As Upline ->  1	10	10	$5	$25	0.5
2	100	10	$5	$125	0.25
3	1000	10	$5	$625	0.125
4	10,000	10	$5	$3,125	0.0625
5	100,000	10	$5	$15,625	0.03125
6	1,000,000	10	$5	$78,125	0.015625
7	10,000,000	10	$5	$390,625	0.007813
8	100,000,000	10	$5	$1,953,125	0.003906
9	1,000,000,000	10	$5	$9,765,625	0.001953
10	10,000,000,000	10	$5	$48,828,125	0.000977

* Each level is on a 50/50commission split with the level  below it. If your second level charges $5 you get half of that. If your level three earns $10, your level two gets half of that $5 and you get half of that($2.50).

I'm not going to tell you that you will reach level 10. Or 9 either. And if you do happen to do that I wouldn't have a clue as to how long it will take you. But there are some things that I am fairly certain about are:

• exchanging links is a viable strategy for improving traffic from search engines. Their thinking is that if you are linked to from other sites in your category then you must have relevant material.

• Multi Level Marketing, even though it has been misused, is the fastest way to get a product launched and BungeeBones wants and believes its directory to be an asset on near every website out there.

• Human edited directories are a high quality product. By enrolling everyone who submits a website to do a little "volunteer" work and manage their link we will be creating a high quality directory that the Internet public will find useful and will use.

• With 65 million new websites each year, and billions more websites struggling to be seen, there is a huge, growing market for high quality directories to these sites.

How the Auction Works

About Paid Categories

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