| Businesses around the world invest, or to be more | | | | switched the tactics by offering them the opportunity |
| precise, they spend, untold numbers of dollars to | | | | to send their message to this list over a period of |
| advertise, market and promote their products and | | | | months, but on a P4P basis (at their cost). The |
| services to make sales and gain new clients. In an | | | | business owner offered to pay them $10usd per sale |
| economic downturn these expenditures may be | | | | (out of a $35 total sale). Their comments, "we do not |
| reduced due to cost constraints and consumer | | | | do business that way." |
| reluctance to buy. | | | | The retort from the business owner: "if you are not |
| As an example it costs around $1,000usd for a small | | | | prepared to try and get 1% (yes one percent) of your |
| classified advertisement in the weekend editions of | | | | database to buy my offer (30,000 x $10 = earnings of |
| major USA newspapers, $2-3,000usd for a similar | | | | $300k), it appears to me that you do not have any |
| placement in monthly travel magazines. Radio spots, | | | | confidence in your own database, my offer, or my |
| from 'cheap and nasty' during the hours when nobody | | | | product, but you would take my money upfront even |
| is really awake to prime time messages to thousands, | | | | though you have no belief in the success of the mailing. |
| the majority of whom may not be interested and | | | | This is not the way I want to do business and you are |
| many of the rest may just go to a competitor. In | | | | not the company I want to do business with." |
| effect, business advertisers may often pay for 'lack of | | | | If advertisers believe that your advertisement will work |
| performance'. Either the advertising copy was | | | | for you why would they not want to earn a better |
| ineffective or the reach of the medium and quality of | | | | income from a P4P arrangement? Or do they really |
| the audience was ineffective. | | | | have an in-house ethical conflict between editorial and |
| In other fields of endeavour we work, perform, | | | | advertising departments? If so, what are advertorials |
| produce and then get paid. Why not in advertising? | | | | and the published press releases sent from public |
| It may be the time to rethink the effectiveness of our | | | | relations agencies? |
| advertising spend and to rethink who we spend it with, | | | | Over the years all types of businesses have been |
| what we spend it on, when we should spend it, where | | | | convinced by all forms of media to advertise but rarely |
| we should spend it, why we are spending it, how we | | | | are they asked to assess the results of the |
| should spend it? Or even, 'if' we should spend it. | | | | advertisement. Advertisers keep taking the money. |
| In other words, how can we get more value from our | | | | Businesses keep on doing the same thing because |
| advertising spend? Is there a better way? | | | | they have been convinced that they need to be seen |
| The internet affords us all exceptional opportunities to | | | | and to "do it this way." Well, maybe it's time for a |
| showcase our wares but the same problem arises: | | | | change. |
| how do small businesses let the world know about | | | | The present economic climate is causing stress and |
| their own websites when contending with the major | | | | strife around the world. Advertisers could find that they |
| players who are always able to buy more 'googling' | | | | have so much white space available forcing them to |
| stuff than they can? | | | | print thinner newspapers and to offer discounted rates |
| As well as being approached by media reps from local | | | | to their recession-proof clients. But what if these |
| to national newspapers and magazines, small | | | | advertising agencies and media outlets started to work |
| businesses now get inundated with internet offers | | | | on a P4P basis with all types of businesses to create |
| such as: 'top 10 search engine rankings for your | | | | new partnerships of media and frontline operations |
| website; 50,000 hits guaranteed; increased visits | | | | from restaurants to who knows what? A win for the |
| assured with our email programs to our double opt-in | | | | media, a win for the businesses and a win for the |
| email clients.' And so on and so forth. The emails arrive | | | | buyers who stay informed and are kept aware of |
| daily to inboxes everywhere. | | | | local, regional or international opportunities. And maybe |
| Businesses do not want looky-loos clogging up their | | | | full staffing, thick papers and magazines, robust ezines |
| websites. They want committed buyers to review and | | | | and e-newsletters that will make us all feel more |
| compare their products to others. They do not want to | | | | confident about the economy. |
| give their hard-earned money to advertisers who | | | | Not all situations will allow a p4p partnership but there |
| simply want to sell advertising space. They want | | | | are enough out there to reward all parties and all we |
| advertising partners. | | | | need to do is develop simple operating systems to |
| Businesses should be given the opportunity to work | | | | make this new way attractive and secure for all |
| with a 'pay for performance' option for their own | | | | participants. |
| advertising spend. In other words, "work with me, | | | | The business in the example above could operate on |
| perform with me, produce with me, get results with me | | | | a P4P basis. It could have a P4P arrangement with |
| and then bill me." The P4P partnership could generate | | | | many different partners in many different countries at |
| more advertising revenue than the old system of "just | | | | the same time. Any downside for the media partners |
| pay, shut up, wait and be thankful for what you get." | | | | would be minimized by their thorough understanding of |
| Let's consider a P4P arrangement where a | | | | the business services and products. They would know |
| percentage of sales is given to advertisers who | | | | the wants and needs of the business and so be in a |
| produce sales. Many businesses might welcome such | | | | position to not just accept an advertisement but to be |
| an opportunity to partner with forward-thinking | | | | totally involved in the generation of leads and buyers. |
| advertisers. Just consider how much more advertising | | | | All partners could get the maximum benefit from the |
| copy could be placed. | | | | opportunity because the only way to earn revenues is |
| An example: | | | | to produce results by better use of skills, creativity, |
| A business that operates websites that offer travel in | | | | contacts and advertising reach. |
| over 70 countries and with products available to | | | | A simple method for internet businesses is for unique |
| travellers in all countries. This company needs to | | | | pages or URLs to be set up for each P4P operation |
| advertise in every country, in all traditional media and in | | | | so that accurate assessments can be made of the |
| all e-commerce media such as e-newsletters, ezines | | | | specific promotion and the fees based on the same |
| and websites plus tv, radio and of course the | | | | statistics and buyers. Another 'comfort-zone' action |
| electronic social media. To do this would take an | | | | could be for the media P4P partner to collect the |
| enormous budget, which is not available, but to do this | | | | 'gross takings' and to remit the net after deductions, to |
| on a P4P arrangement could lead to sales growth that | | | | the other partner. Vouchers can be created giving all |
| could never be realized with the traditional methods. | | | | parties an audit trail. Trust is paramount in P4P |
| There could be many similar businesses around the | | | | partnerships. |
| world that could also grow more quickly. Advertisers | | | | Many small businesses will survive and help save the |
| who are willing to accept a radical change in their | | | | global economies. Big business will continue heavy |
| business practices by operating a P4P option could | | | | layoffs, cutbacks and corrections until the good times |
| also benefit from the business growth of the | | | | roll again, which could be a long way into the future. |
| thousands of global businesses that would embrace | | | | Let's take action now. |
| this innovative new concept. Sharing the risk of both | | | | Small business together with Small Internet Media |
| success and failure. End of example. | | | | (e-newsletters, ezines) and other Smart Media can try |
| The way we now advertise, market and promote | | | | new ways to pull us all out of the economic mire. If |
| business must change. Advertisers should consider | | | | they seriously consider this new way of advertising, |
| P4P and share the risk and the greater rewards for | | | | marketing and promotion 'with' their clients, not 'for' their |
| performance. The advertising industry could | | | | clients, they can "get going now, or they can sit back, |
| experience more business, more profits and lead global | | | | take no risks, take no chances, ignore P4P |
| economic recovery. | | | | opportunities, downsize, get laid off, change careers, |
| More global businesses will readily accept a P4P | | | | move away or just keep doing the same old thing and |
| partnership. Businesses and advertisers can perform | | | | stagnate." |
| together and make better returns for both by sharing | | | | Thousands of businesses around the world would |
| the risk and producing improved sales. However, the | | | | welcome approaches from all forms of media to |
| P4P format should only be implemented when both | | | | advertise, market and promote within a P4P |
| parties agree that it could produce better incomes for | | | | partnership arrangement. This could be a simple way |
| both parties. If advertisers consider that there would be | | | | to not only help business survival in the recession but |
| no benefits for them with a P4P arrangement, the | | | | will enable us to prepare for future growth. |
| business has to also rethink their own advertising | | | | We go to work, perform our duties, finish the job, |
| methods and lack of confidence of the advertiser for | | | | produce results and then we get paid. Why then |
| declining the arrangement. A catch 22, but real world. | | | | should we not expect to pay only for the 'results' of' |
| Although most businesses do not want window | | | | our advertising and not just 'for' advertising? |
| shoppers, looky-loos, timewasters, or those who | | | | Imagine the global acceptance of P4P. Businesses |
| unfortunately cannot afford to buy, they must also be | | | | would be able to advertise anywhere and would never |
| aware that, in travel anyway, "today's backpacker | | | | again have budgetary restrictions to advertise, market |
| may be tomorrow's luxury travel buyer" and should be | | | | and promote sales. Media businesses would be getting |
| nurtured and even developed as future customers. A | | | | new clients from places that they would never have |
| P4P partnership of media and business could develop | | | | considered and at the same time, helping their own |
| improved campaigns leading to healthier long-term | | | | clients to expand. Why don't we do it? |
| business growth for all partners. | | | | Just because; "We don't do business that way" is |
| A recent real case example for internet advertising is | | | | unacceptable! |
| as follows: | | | | The positive side of an economic downturn is that |
| An internet marketing company stating that they had 'a | | | | new opportunities arise for creative and progressive |
| list of 3,000,000 enthusiastic travellers' recently | | | | entrepreneurs to start new ventures such as P4P |
| approached a local business. Before even asking for | | | | advertising. They are out there. |
| the cost of using their services the business owner | | | | |