DomeBase said:
Your point is well taken, but in some respects this is a technical problem not an economic one. The technical problem is not being able to track the referral path. As technology advances, my hunch is that this barrier will erode and folks *will* be able to track the referral path more effectively and will be able to share value generated with those along the referral path. you may ask what would motivate a seller/advertiser to go to this effort and not just stiff the originating site? For the same reason that it is not wise to stiff agents or other referring parties -- because if you do then they stop sending business your way. So -- as technology evolves -- I think we will see continued movement toward profit sharing based on sales (not clicks) generated.
right on. as a google adwords client i can honestly say that the PPC approach
is not going to work for very long. my company spends close to half a million
a year on google adwords and the conversions are not good.
we're now improving all stats tracking systems to figure out which keywords
and which search engines and referrers are best so that we throw less
money out the window. i know a lot of other companies that heavily
depend on PPC for traffic are doing the same.
i think the biggest problem with PPC, and Google Partners such as
DomainSponsor, Sedo, etc is that they only care about the click. all that
matters is that the click generates the most $$ for them. they don't
care what is being sold on the sponsors site because they don't profit
from that.
IF the partner worked not only on optimizing the most CLICKS but also
on optimizing SALES, then everyone would win. this of course would
be very hard and the traditional templated parking pages would have
to go. also, this method introduces a new problem in
which the seller could cheat by not providing accurate sales stats.
it's a tricky problem. but with these PPC bids going through the roof
something will have to change.
luc l