An Affiliate-Owned Ad Network Cooperative

6 replies
I'm bootstrapping an affiliate program that hopes to bring a whole new paradigm to ad networks.

I recently found some stats:
  • There are over 100 Ad Network companies
  • Only 20% of the web sites use any of them!
In those 100 companies there are such names as Google, Yahoo, Amazon, Microsoft etc. (the heavy hitters) and yet they still can only convince 20% of web site owners to turn their web traffic into cash? That is a really pathetic performance on their part but I believe an incredible opportunity at the same time.


As near as I can figure, the reason for their dismal performance is that they pit web traffic producers/publishers against web traffic buyers/advertisers when more often than not a web site owner really wants to play both sides of the game (i.e. they want to buy AND sell) but the current systems make doing that either not worth it or too difficult.


The solution, I believe is to form a web advertising cooperative owned by the web site owners themselves. One of the most successful cooperatives is a producer coop called "Ocean Spray" (yes, the cranberry juice cocktail people). They are owned by 700 cranberry grower families.


Some details I have worked out (don't have them all worked out though) is that the coop members invest their web traffic, that the web traffic gets pooled and aggregated and that each member then gets to sell the aggregate. In other words, each member is a venture capitalist and a sales shopping cart at the same time (in theory each earns according to their web traffic but per customer and not per click). Then, since every customer is also a potential producer then if the customer gets recruited then the recruiter gets overrides on the recruits sales. As the coop grows an investor receives long term returns on their original web traffic investment.
#affiliateowned #cooperative #network
  • Profile picture of the author Joey Babbs
    I like the concept.

    one issue i see is who holds the puppet strings and allows new publishers to become part of the network?

    For example say Im a church and I want to be part of that network...then some sleazy website promoting adult porn is on the same network...how do you respond to that....

    My example is extreme of course....im not really a church
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    • Profile picture of the author BungeeBones
      Excellent question. The current approach is to not have adult or gambling categories for people to add links to.

      Then, as the admin, I review links when they are added and do my best to keep the dead links out.

      Then, too, since links are ordered in the order they are received there is at least a little incentive for new links to "rat" on bad links in their category. I provide a way at signup to see the other links in your category. "Bad links" can mean inappropriate or simply just miscategorized ones too, or even dead ones. By getting rid of them a new site moves their own a little higher.

      The question reminds me of when I used one of the smaller, lesser known ad networks (PPC) and they posted ads for a divorce attorney and it WAS a church site LOL. Had to pull the code off the page in a hurry. The moral of the story is that even the algorithms aren't perfect :-)

      I plan on adding the option to allow those categories when the publisher adds the script but it isn't coded yet.
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      • Profile picture of the author Joey Babbs
        I think if your going to be a real deal ad network...you gotta have some standards on who is allowed to be part of the network...and it cannot be an algorithm that 100% decides....in other words everyone needs manual review at some point.
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        • Profile picture of the author BungeeBones
          Originally Posted by Joey Babbs View Post

          I think if your going to be a real deal ad network...you gotta have some standards on who is allowed to be part of the network...and it cannot be an algorithm that 100% decides....in other words everyone needs manual review at some point.
          I agree. But the devil is in the details. We saw what happened to DMOZ relying on strictly volunteer reviewers (complete with corruption ).

          Some editing will be simply being outbid so that the spammy stuff gets pushed lower. And what constitutes spam is definitely in the eye of the beholder too.

          The free links are ordered in the position they are received and within the selected category. There will be somewhat of a motivation (a selfish one for the new links but that works) where the new links can move their free link up by reviewing the competition. And too, there is just some good education value to see what your competition is offering so I'm believing we'll get a lot of help once the idea catches on.

          And since the ultimate goal is that the owners of the network are the advertisers they hopefully will help keep an eye on it.

          When I code that publishers could just block categories they didn't want then some of the problem goes away. Then the only issue is whether the site is relevant to the category it is in.

          I'd love to apply some blockchain technology to the problem. Bitcoin works by consensus.
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          • Profile picture of the author BungeeBones
            This was just released by the CEO of Bitpay and might be just what is needed to provide the decision mechanism you discuss...
            BitPay CEO: "We've published a paper on ChainDB's consensus mechanism and are seeking feedback" : Bitcoin

            The Bitcoin world is changing so fast ... like the Internet during its early days ... I'm confident that if this new chainDB isn't the answer then something will be along soon that will
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  • Profile picture of the author Rozanne
    I can see this concept working very well and will let publishers make a good ROI.
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