MarcfromCJ
03-18-2003, 05:00 PM
Marc from <a href="http://traffic.consumptionjunction.com">Consumption Junction</a> here, and I wanted to take a few minutes to tell you about our new <b>Pricing Policy</b> (keep reading, it’s 30% lower than before!).
We’ve had a whirlwind of activity to make CJ even better for both our advertisers and our fans. We have removed some of the banner and text link positions and redesigned the site navigation in an effort to make the site more appealing to our fans and to better qualify the traffic for advertisers. We’ve listened to our Fans and our Advertisers alike and in response have made adjustments.
We've <b>reduced our pricing by almost 30%</b> and we wanted to let you know how we came up with our new pricing (check the <a href="http://traffic.consumptionjunction.com/specials.html">Available Now / Profit Calculator Page</a> for new rates).
<a href=mailto:Sean@ConsumptionJunction.com>Sean Clarke</a> is responsible for selling as much of our advertising inventory as possible on a Retail basis. We send any remaining inventory to affiliate programs like TrafficCashGold.com, SilverCash.com, TopBucks.com, and DollarMachine.com. These programs typically get 10% to 20% of our ad rotation every month. At the end of each month, we determine the average revenue per click that we make off the clicks sent to these programs. Next, we figure out average number of clicks generated for each of our ad spots during the previous month. <b>We set the pricing for our ads by multiplying the average number of clicks generated by each placement times the average affiliate revenue per click.</b>
After crunching all the data, we found that in the month of February we averaged <b>6.75 cents of revenue for every click</b> that we sent to the affiliate programs (this is based on the clicks we record and the money they pay us which puts all the programs on a level playing field). So we’ve adjusted our pricing cost <b>7 cents a click</b>. We add in the extra 1/4th of a penny per click to cover the labor that goes into setting up campaigns for customers. <b>Honestly, this is a hell of a deal</b>. The traffic we send to affiliate programs is done on autopilot. We just setup the banners, text links, and videos that they give us and send it over. For our <b>Retail Customers</b>, we spend hours of time with each customer getting to know their sites and helping them create the perfect advert creative to maximize their return. The <b>Video Sponsorships</b> are a great example. The ones that we used to send traffic to affiliate programs averaged 8500 clicks each last month. The ones that we used to send to <b>Retail customers</b> averaged 19,000 clicks last month. That’s because we put in the time to help them get the perfect video.
The point of all this is that <b>we're charging the same for the traffic that we could make by sending it to the affiliate programs</b>. This system works because our Retail Customers can make more off CJ traffic than we can by sending it to affiliate programs. Most of these affiliate programs are using leased content. Sites that advertise on CJ with custom-content always do better than sites with leased content. That's why we do especially well for single-model amateur sites and reality-based sites. When we determine how much we make off CJ traffic by sending it to affiliate programs, we're not getting paid on email addresses collected, check transactions, cross sells, or all the exit consoles. These are all ways that you can make more off our traffic than we can by sending it to the affiliate programs.
We feel this method is best way to offer our customers <b>fair pricing</b> that will give them <b>a damn good chance of making a profit</b>. Yes, this does mean we're going to make roughly 30% less off selling our ads. But, we hope that it will also mean that the ads will be easier to sell and that more of our customers will renew their campaigns. We're still marketing as aggressively as ever, so I urge you to <b>take a look at our <a href="http://traffic.consumptionjunction.com/specials.html">new pricing</a> and get in touch with us</b> before we sell out of inventory!
We’ve had a whirlwind of activity to make CJ even better for both our advertisers and our fans. We have removed some of the banner and text link positions and redesigned the site navigation in an effort to make the site more appealing to our fans and to better qualify the traffic for advertisers. We’ve listened to our Fans and our Advertisers alike and in response have made adjustments.
We've <b>reduced our pricing by almost 30%</b> and we wanted to let you know how we came up with our new pricing (check the <a href="http://traffic.consumptionjunction.com/specials.html">Available Now / Profit Calculator Page</a> for new rates).
<a href=mailto:Sean@ConsumptionJunction.com>Sean Clarke</a> is responsible for selling as much of our advertising inventory as possible on a Retail basis. We send any remaining inventory to affiliate programs like TrafficCashGold.com, SilverCash.com, TopBucks.com, and DollarMachine.com. These programs typically get 10% to 20% of our ad rotation every month. At the end of each month, we determine the average revenue per click that we make off the clicks sent to these programs. Next, we figure out average number of clicks generated for each of our ad spots during the previous month. <b>We set the pricing for our ads by multiplying the average number of clicks generated by each placement times the average affiliate revenue per click.</b>
After crunching all the data, we found that in the month of February we averaged <b>6.75 cents of revenue for every click</b> that we sent to the affiliate programs (this is based on the clicks we record and the money they pay us which puts all the programs on a level playing field). So we’ve adjusted our pricing cost <b>7 cents a click</b>. We add in the extra 1/4th of a penny per click to cover the labor that goes into setting up campaigns for customers. <b>Honestly, this is a hell of a deal</b>. The traffic we send to affiliate programs is done on autopilot. We just setup the banners, text links, and videos that they give us and send it over. For our <b>Retail Customers</b>, we spend hours of time with each customer getting to know their sites and helping them create the perfect advert creative to maximize their return. The <b>Video Sponsorships</b> are a great example. The ones that we used to send traffic to affiliate programs averaged 8500 clicks each last month. The ones that we used to send to <b>Retail customers</b> averaged 19,000 clicks last month. That’s because we put in the time to help them get the perfect video.
The point of all this is that <b>we're charging the same for the traffic that we could make by sending it to the affiliate programs</b>. This system works because our Retail Customers can make more off CJ traffic than we can by sending it to affiliate programs. Most of these affiliate programs are using leased content. Sites that advertise on CJ with custom-content always do better than sites with leased content. That's why we do especially well for single-model amateur sites and reality-based sites. When we determine how much we make off CJ traffic by sending it to affiliate programs, we're not getting paid on email addresses collected, check transactions, cross sells, or all the exit consoles. These are all ways that you can make more off our traffic than we can by sending it to the affiliate programs.
We feel this method is best way to offer our customers <b>fair pricing</b> that will give them <b>a damn good chance of making a profit</b>. Yes, this does mean we're going to make roughly 30% less off selling our ads. But, we hope that it will also mean that the ads will be easier to sell and that more of our customers will renew their campaigns. We're still marketing as aggressively as ever, so I urge you to <b>take a look at our <a href="http://traffic.consumptionjunction.com/specials.html">new pricing</a> and get in touch with us</b> before we sell out of inventory!