You may have noticed that I have been running the Buy Me a Beer plug-in for the last little while, and well, it hasn’t exactly been the most lucrative venture I have attempted. In fact, up until yesterday, I did not receive a single beer from any of the 100 or so RSS subscribers nor did I receive a beer from any random visitors who found Beyond the Rhetoric through a search engine. That changed last night.
You might know venture capitalist Dan Rua from his affiliation with PayPerPost, a blog marketing service that pairs bloggers (they call them “posties”) with paid advertisers so that said bloggers can publish sponsored posts on their websites. In exchange, the team at PayPerPost takes a small commission for providing the middle-man service. It’s a great system for blogs who don’t have all that much traffic, and thus, cannot make that much money through Google Adsense, AuctionAds, Kontera, and other (CPC, CPM, and CPA-based) ad networks like them.
Well, Dan was nice enough to buy me a beer for three bucks. He’s the first (and I hope he won’t be the last). Interestingly, the booze that he provided was not fully out of the goodness of his heart. Oh no. Just like nearly everyone else on the Internet, Mr. Rua had ulterior motives. As I mentioned above, Dan has a vested interest in PayPerPost and in a separate email, he was encouraging me to try PayPerPost Direct, the direct (if you’ll pardon the pun) competitor to ReviewMe. Here’s his message:
I saw your speedlink post tonight and appreciate your reference to PayPerPost as one you’d recommend. Dosh did a good job summarizing them all.
Give the PPP Direct widget a try for awhile to see how it works for you. Heck, try it side-by-side your other badges and see which gives you the best results. At your currently advertised price of $50, you would pocket $50 with PPP Direct and fee to advertiser would be $5. An even better win/win, you can offer a lower price with PPP Direct like $40, resulting in more reviews but you pocket $40 instead of $25 per review. No-brainer?
If you do try it, I’d love any feedback you can share on the widget…
Take care Michael!
I haven’t really decided what I’m going to do about this situation, but what I might end up doing is removing the ReviewMe “buddy” icon from the sidebar completely. No, I’m not going to replace him with a PayPerPost Direct widget. Instead, I could try plunking both of them in my official advertise here page. This way, any potential advertiser will have a choice. I’ll probably include some sort of link to my contact page as well, in case they want to do a private ad sale.
What do you think? Should I pick just one or allow them to compete with one another on my site?
Perhaps one of the most ironic things of all is that this post is a paid post. I know I said that I’d avoid post offers sponsored by PPP itself, but I thought I’d give them another chance, given that I apparently have Dan Rua on my side. I’m not promoting or advertising PayPerPost, per se, but I figured because I was going to write a post about me getting my first beer, I might as well get paid for it too. It’s only ten bucks, but that’s enough for a couple more beers. 😈
Thanks again, Dan Rua, for the beer. I’m going to enjoy this.
Enjoy the beer whether you try the widget or not — no reciprocation required. Although, I do think the widget will buy you a lot more beers than my $3 😉
If you do try it, I’d love some feedback…
Thanks Dan. I wasn’t going to let your three bucks push me one way or another anyways. 🙂 I’ll give it some thought and see if I get any feedback here from other readers.
lol
I think having both services available to order through would just confuse people. They wouldn’t know which one to go through… You’re better off just to pick one…
Let ’em compete on your advertisers page…that’s what it’s there for….right? 🙂
I’m having quite a bit of success with my method:
Get listed in both marketplaces so that advertisers who search through these sites can see your site and order a review through the marketplace.
At the same time, create your own button or landing page so that advertisers who stumble across your site on their own can order a review. In this situation, the marketplace has done nothing for you so why do they deserve a commission? Handle it yourself and keep the maximum that the advertiser is willing to pay.
Hence, if you charge $10 for a post you want to be listed in ReviewMe at $20 while still offering about $10 in the PPPDirect marketplace and on your own site.
With PPP Direct, the commission is quite small but you’re also missing out on the maximum that an advertiser will pay and the 10% commission can add up over a number of reviews. Had I used PPPDirect for my reviews in the past month, I would have missed out on about $25 and I honestly doubt that the PPP marketplace would have sent me any reviews to cover that. I’m yet to read of a blogger who has done a PPPDirect review but I still see a lot of ReviewMes.
It makes me a little angry that these marketplaces take a commission for reviews that aren’t found through them. Michael, I’ve never seen your site listing in ReviewMe or PPPDirect and if I was to order a review it would be based purely on my visits to your site.
Is it fair for either company to take a commission for that?
I know any response against the above the comment will include “But PPP Direct doesn’t take a cut, you still get the $50” so let me clarify:
My price charged is worked out on market rates so that I’m offering the maximum that I believe an advertiser is willing to pay while still receiving a decent number of review requests. I believe for many advertisers, they may set themselves a $50 spending limit (for example). If I were to use PPPDirect, it would cost the advertiser $55 which is out of their budget and I lose the offer.
Similarly, if there is an advertiser who is willing to pay $55, I am receiving less than their maximum and losing out. It’s like Dosh’s strategy of not listing prices and setting each review price on how much you think the advertiser can afford to pay.
If they can afford to pay more – I want more.
All good thoughts Kumiko. Andy Beard covered a variety of reasons why advertisers might prefer engaging via PPP Direct’s negotiation, payment and transaction tracking engine.
See
http://andybeard.eu/2007/05/payperpost-direct-review.html
http://andybeard.eu/2007/06/payperpost-receives-7m-additional-funding-launches-direct-marketplace.html
It only takes one advertiser with such a widget preference to make up for ten that would prefer email negotiation back and forth with you and tracking campaign purchases on their own. I’d bet the larger the advertiser, the more likely they’ll avoid email and manual campaign purchase tracking.
Even if those ideas don’t knock you over, you can always try both side-by-side and see how advertisers prefer to engage with you…
Just my $.02 — Michael already took my beer money 😉
Andy makes some valid points but it all relies on a large advertiser visiting the site in the first place. If a large advertiser is surfing around for smaller blogs to promote on they’d have to be prepared for some manual work just to find the sites.
Isn’t that the point of the PPPDirect directory – to make it easier for large advertisers? I’ve got no problem with PPP charging 10% if the advertiser finds me through the directory but if I’ve had to put the hard work in getting the advertiser to my site in the first place I don’t think PPP deserves a commission for my work.
I’m sure with ReviewMe and PPP running side by side PPP would get a lot more action – but don’t forget that I can make $25 affiliate income if a new advertiser purchases through the ReviewMe button! With both buttons showing $40, I’d make more with ReviewMe!
This is great feedback on how you think about various tradeoffs Kumiko.
Given your decision to go badge-less, I’m guessing you figured any potential affiliate income didn’t compensate for RM’s 100% markup. I won’t debate that choice.
PPP Direct’s 10% markup offers a very different tradeoff. You are betting that 10 times as many advertisers will prefer using home-grown email negotiation and manual tracking vs. PPP Direct’s negotiation/tracking widget. We may disagree on that bet, but it’s not necessary in a data vacuum. Running with the PPP Direct widget AND a homegrown badge allows you to see if your 10X bet is sound.
Thanks for all the insight Kumiko — it suggests that PPP Direct widget adopters deserve as much marketing and advertisers as PPP can throw at them…very interesting 😉
I like your style Dan and I feel bad that I’ve spent a lot of time being less than positive about your investment. I’ll tell you what would work for me:
If an advertiser finds my site through the PPP Directory – charge a 20% service fee. You did the work and deserve it. You’re still undercutting RM and would be the marketplace of choice for me. Furthermore, it gives you a great incentive to promote and market my site to advertisers!
If an advertiser orders on a site directly – 0% service fee as I did all the work. But the widget will always have the PPPDirect logo to compensate for processing fees and that level of advertising on my site is worth a lot more than what would be made through a review commission! 10% and your logo appearing (widget or popup) is just too much in my mind.
Interesting…
Sounds like a good experiment for a Beyond the Rhetoric ‘Beer Vote’!
You can count my beer towards PPP Direct!! 😉
I doubt many people would be voting in that Poll… 😛
I do agree with Kumiko at this point. When a blog such has yours has gained enough trust, most advertisers will be willing to do business directly with you. Thus, by cutting out the middleman, you are able to get more money and also the advertiser can negotiate directly with you for anything regarding the review.
With a reliable blog, the only reason such a service like reviewme exists is to help advertisers who have not visited your site, to find it.
I also like the idea of listing both on the site, or at least using both as an option. While I’ve been listed in the ReviewMe directory for two months now, it hasn’t sent me any new orders. Yet, if it did they would take their 50% cut. The one review I did have was direct from the user visiting the blog. Should I have used PayPerPost I would have earned more as they take less.
nice beer selection!
congrats on the beer!
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