Commission And Paid Link Pricing
Throughout the history of the Internet there have been
a number of different models of how advertisers would be charged. 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 that 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 by a registrant from their website that purchase a paid link.
PRICING
BungeeBones uses an auction system which is a modified Yankee Auction. In a Yankee Auction the highest bidder gets the product, of course, but then the same items are offered to other for the same price. Unsold items are returned to storage. BungeeBones offers the top spot for anyone to purchase and become the top link. When they do, a new purchase option is created enabling someone to bid yet higher. Other bidders can purchase that higher position or they can pay the same amount for any number of positions under the top one.
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