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Q: CostPerAcquisition Relationships ( Answered 5 out of 5 stars,   1 Comment )
Question  
Subject: CostPerAcquisition Relationships
Category: Business and Money > eCommerce
Asked by: aglassey-ga
List Price: $100.00
Posted: 20 Feb 2004 18:39 PST
Expires: 21 Mar 2004 18:39 PST
Question ID: 309033
We are a legitimate Canadian pharmacy with an existing high quality,
high volume e-commerce site (www.medcenterstore.com) that ranks
favourably in organic Google searches (hundreds of top 10 positions). 
We now wish to raise our sales level through an aggressive cost per
acquisition (CPA) campaign.

- Who are the best CPA networks/organizations that we should approach?
 (Please provide 20.)

- How do we find other organizations/individuals interested in CPA
campaigns?  (Please be very detailed.)

- What other factors should we consider to make our CPA sales strategy successful?

Thanks for your help.

Request for Question Clarification by nancylynn-ga on 22 Feb 2004 17:38 PST
Hello aglassey-ga:

I've been working on your question. 

It's impossible to say for certain, and with total objectivity, just
which are "the best CPA networks," but I have found some truly
outstanding CPA agencies with impressive client lists, etc.

Instead of worrying about getting to 20 agencies that handle CPA
campaigns, I would ask you to consider my listing fewer agencies than
that, so that I can concentrate on finding and listing quality firms
whose reputations and track records seem truly solid?

I can also give you some directories for more agencies, in addition to
the specific marketing firms I can list for you.

Also, would you please clarify for me: you are using the terms
"organization" and "network."

Using those terms, I'm getting only a very few results, such as "The Ad Authority":
http://www.theadauthority.com/advertisers.asp 

I need to clarify that you do mean marketing/promotional agencies that
handle CPA campaigns, such as:

Location 3 Media:
http://www.location3.com/about.html
http://www.location3.com/advertisers.html

Again, I don't know that I can specify 20 such agencies that I can
vouch for with great confidence! I will gladly list as many quality
North American agencies as I can find for you, in addition to giving
you some directories for North American marketing firms.

Would that be acceptable?

Regards,
nancylynn-ga

Clarification of Question by aglassey-ga on 23 Feb 2004 11:17 PST
NancyLynn,

Did you get my response to your clarification request?

Alex
aglassey-ga

Clarification of Question by aglassey-ga on 23 Feb 2004 11:40 PST
NancyLynn,

I'll resubmit my clarification as it seems to have been lost.

First of all, thank you for working on this question for us.

WRT whether we are looking for agencies, organizations, networks,
etc., we're not worried about the type of organization.  Our goal is
to generate high volumes of qualified traffic from referrers whom we
can pay generous commissions on a CPA basis.  Here's some further
definition:  "high volumes" is tens of thousands or hundreds of
thousands of unique visitors per day (both our technical
infrastructure and our order processing infrastructure are capable of
handling these volumes);  "qualified traffic" (our demographic is
females 40+ and males 55+ with an interest in their and their families
health).

Note that "referrers" is a purposely general word.

By the way, we have in-house creative talent and so would rely less or
not at all on the creative services offered by the agencies.

To answer your numeric question directly:  we would accept less than
20 but will take you up on your offer to supply us with directories of
"referrers".

Finally, it was implied in the original question, but I should
probably state it more clearly here:  we're only interested in those
"referrers" that don't have a problem doing business with legitimate
Canadian pharmacies.

Thanks again for doing this research for us.

Alex
aglassey-ga

Request for Question Clarification by nancylynn-ga on 23 Feb 2004 12:37 PST
Hello Alex:

It looks like your RFC didn't come through on the first try, and I
sure appreciate you're making a second effort.

I'm very glad you clarified just what it is you want!

Re: "'referrers' that don't have a problem doing business with legitimate
Canadian pharmacies." I will certainly bear that point in mind. Most
Net-based operations seem to have little, if any, regard for
geography, so that shouldn't be a major stumbling block.

Thank you again for your response,
nancylynn-ga

Clarification of Question by aglassey-ga on 23 Feb 2004 13:40 PST
Hi NancyLynn,

Glad you got it.

Alex
aglassey-ga
Answer  
Subject: Re: CostPerAcquisition Relationships
Answered By: nancylynn-ga on 23 Feb 2004 22:44 PST
Rated:5 out of 5 stars
 
Hello again Alex:

I have attempted to answer all three of your inter-related questions.

Nearly all Net-based businesses have little regard for geography. In
fact, many of the organizations I've listed for you have online
evaluation forms in which you note the state or *country* where your
business is incorporated.

Because your business is so well-established and popular, and since so
many American citizens, and U.S. states, are now purchasing
lower-priced medicines from Canada, the MedCenter Store should be a
very attractive prospect indeed to U.S. CPA organizations. (I have
also given you some Canadian resources.)

CPA REFERRAL NETWORKS/ORGANIZATIONS/AGENCIES:

"The CPA Tipline eNewsletter" at:
http://www.cpatipline.com
"CPA Tipline is a subscription-free newsletter enabling advertisers,
agencies and brokers to more easily locate marketing partners
interested in running campaigns on a pay for performance basis. . .
.Publishers can use the Directory as a permanent online source of
advertiser leads, all searchable by date and topic category, such as
babies, health, or finance."

At Tipline's "Directory":
http://www.cpatipline.com/directory.htm
"Lists companies whose products and services can be promoted across
the Web on a cost-per-acquisition basis. These companies have
previously promoted their campaigns in the CPA Tipline eNewsletter."

In the menu at that page select "Health" and the results that pop up
include online pharmacies. Advertising in the "Tipline" is free and
will help CPA agencies find you.

Also see:
http://www.cpatipline.com/advertise.htm

***
DirectTrack offers three different programs:

Merchant Version:
http://www.directtrack.com/Merchant.html?PHPSESSID=12d9a3fa6cfeda7179c9be519018fa48

". Set up a privately branded affiliate program
.  Serve and optimize all of your ads online
.  Track any type of campaign: CPM, CPC, CPA, CPS, Email . . .
.  Advanced ad serving technology to increase your conversion rates
.  Built in Suppression List technology to help you comply with the CAN-SPAM
 Act
.  Product Specific commission payouts"

Merchant Pro:
http://www.directtrack.com/MerchantPro.html?PHPSESSID=12d9a3fa6cfeda7179c9be519018fa48

And

Network Division:
http://www.directtrack.com/nettworkver.html?PHPSESSID=12d9a3fa6cfeda7179c9be519018fa48
"This version includes the ability to broker deals between an
unlimited amount of merchants and an unlimited about of affiliates.
Each of our Network clients also have the ability to work with one
another and exchange their offers right through their DirectTrackT
Administration area."

***
Location 3 Media
http://www.location3.com/advertisers.html
"Location3 Media's extensive network of distribution channels allows
advertisers to obtain leads and/or sales to all reaches of the online
world. . . . Location3 Media can assist advertisers with lead
generation and/or sales through three models; Cost per Acquisition
(CPA), Cost per Click (CPC) or Cost per Thousand (CPM). CPA: CPA email
campaigns are attractive to advertisers because there is zero risk.
The advertiser pays on a per-lead or per-sale basis . . . ."

At Location 3 Media's "Distribution Channel" page:
http://www.location3.com/distribution.html
complete that form to give Location 3 a preliminary idea of your company's needs.

***
Traffic Logic, whose clients include eBay and NetFlicks:
http://www.trafficlogic.com/What-We-Do.html
" . . . our traffic typically converts two to three times higher than
other sources. Using the most advanced click-to-sale conversion
tracking technology available, Traffic Logic clients can easily
measure their ROI from each key phrase in real time. We also offer
Cost per Action based pricing whereby clients only pay when we
actually generate a sale or lead."

Also see:
http://www.trafficlogic.com/Pricing.html
(Includes CPA program).

***
24/7 Media:
http://realmedia.com/
whose clients include Forbes and NBC, has an intriguing "Open Advertiser" program:
http://www.247realmedia.com/products/oad.html
See this press release about their newest "prospect management tool,"
which encompasses CPA:
http://www.247realmedia.com/about/press_2003/2003-09-18.htm

***
Direct Response Marketing:
http://www.directresponse.com/
"The company provides an integrated platform and tools to reach
consumers at the moment of decision?to make a sale, generate a lead,
or otherwise cause the target audience to take action. We have
multiple ways of putting the right message in front of the right
person at the right time?and allowing our customers to track every
aspect of the transaction. Our understanding of both consumer behavior
and emerging technologies and media allows us to provide an unequaled
environment for driving results."

http://www.directresponse.com/index_advertisers.html
"The Direct Response Advertising network has over 15,000 affiliates
and has been built up over the last eight years. The network delivers
over two billion ads per month by high-quality affiliates who need to
go through a screening process that only approves 20% of applicants.
The Direct Response Network allows advertisers to run CPC, CPA and CPS
offers and is targeted for high-volume programs.

***
Acquire Solution.com:
http://www.acquiresolution.com

Read about their CPA program:
http://www.acquiresolution.com/CPA.asp

***
The Marketing Network (TMN):
http://www.themarketingnetwork.com/aboutus.htm
The company has previously worked health-related clients, and they
have a CPA program:
http://www.themarketingnetwork.com/moreinfo.htm
but note that their "CPM, CPC, and Search Engine Ranking services tend
to produce far superior quality, targeting and results."

***
On-Line Traffic Broker:
http://www.onlinetrafficbroker.com/leads.html
" . . .  .our Custom Leads campaigns are uniquely created for each
individual client. This means that not only will your leads be
exclusive, but also they will be branded for your specific company and
customized for your specific offer. Online Traffic Broker will produce
the full-page ad creative for you and submit it to you for your
approval. After approval, we will begin running the ad on our
extensive network of sites.  . . . them. The charge for this type of
lead generation can be roughly from $0.65 to $80.00 CPL, depending on
how much information you need and how narrow your market is."

***
Pay Per Click Analyst:
http://www.payperclickanalyst.com/advertising.htm

And

Searchfeed.com:
http://www.searchfeed.com
are both worth a look.  

***
360i:
http://www.360i.com

According to this 2001 press release 360i specializes in CPA marketing:
http://www.360i.com/news_press/pr_cpa.html

360i has a new spin on CPA, called pay-per-click (PPC) that I think is
worth your consideration:
http://www.360i.com/listings.html
"Paid listings, or pay-per-click (PPC) search engines provide
advertisers with over 75% coverage across all of the major search
engines.
 
Paid Listings offer three distinct advantages:

1. Advertisers pay only for qualified leads on a per-click basis.

2. An advertiser can, at any time, manipulate its ranking by
increasing or decreasing its bid accordingly to reposition itself
against competitors. "

***
MMMM-800 Networks, Toronto
http://www.mmmm.ca/how_it_works.htm#CPA
"Cost Per Acquisition: Is an advertising revenue model based on a
strongly focused acquisition of a sales lead or making an actual sale.
. Advertisers do not pay a fee to advertise (other than a small initial
setup fee), they pay for end results only.
     . Defining what is end results becomes a contract specific. CPA
advertisers are invoiced on the number of sales or customer registrations
their advertisements bringCost Per Acquisition
Is an advertising revenue model based on a strongly focused acquisition of a
sales lead or making an actual sale."

***
Advertising.com:
http://www.advertising.com/home.html

http://www.advertising.com/Contact/ContactWebPub.html
"Exploit innovative opportunities. We develop creative solutions for
both publishers and advertisers. Affiliate
marketing is one great example. With it, publishers can leverage site
registration to generate incremental revenue streams."

DIRECTORY: "Online Ad Industry News":

First, try this part of this colossal site:

"InternetAdSales: Networks and Resource Links" at
http://www.internetadsales.com/xoops/modules/mylinks/topten.php?hit=1

The first CPM/CPC/CPA network you'll see listed is "Fastclick Online
Advertising." Click on that name and then wade through tons of very
annoying pop-up ads until you FINALLY get to Fastclick's rating:
"Description: Top Recommendation!
The perfect ad network for small to medium-sized sites. Fastclick
enjoys a deserved reputation for delivering consistently and reliably
to its publishers. . . ."

You can just keep going through the "CPM Networks; CPC Networks; CPA
Networks Top 10 Hits" back at:
http://www.internetadsales.com/xoops/modules/mylinks/topten.php?hit=1

At left on that page, in the menu, click on "Ad Networks and Resource
Links" to bring up:
http://www.internetadsales.com/xoops/modules/mylinks/
Which will lead you to more links, including "Affiliate Programs" and
"Affiliate Jungle," which you click on to bring up a listing of
networks from each of those categories.

At right side of the page, see a link for 33 "CPM Networks; CPC
Networks; CPA Networks." When you click on that CPM/CPC/CPA grouping,
you'll bring up all 33 of those networks:
http://www.internetadsales.com/xoops/modules/mylinks/viewcat.php?cid=1

You just keep clicking and clicking your way through this directory,
finding more and more links and resources for affilates and
CPM/CPC/CPA networks.
  
You do have to register to access some of the rest of this directory,
but registration is free, which helps compensate for the infuriating
pop-ups:
http://www.internetadsales.com/xoops/modules/news/
"InternetAdSales is your complete guide to profitability in the
ever-widening, ever-toughening internet marketplace. Here you will
find a complete listing of internet advertising networks with detailed
specifications and, where possible, user reviews; overviews of other
revenue sources such as major affiliate programs, newsletter marketing
and sponsorships; and detailed information and insider perspectives on
industry trends and directions. . . ."

FINDING OTHER ORGANIZATIONS & RESOURCES:

First, you can try some of my search strings, which I've listed at the
bottom of this page. (Feel free to modify and play with them.)
Granted, it's a time-consuming process, but you may find some
organizations that I missed while answering your questions. You can
also click "Find Similar Pages" links that come up in your search
results, to find even more potential resources.

Network, Network, Network:

Consider joining the International Internet Marketing Association
(IIMA), which is based in Vancouver:
http://www.iimaonline.org

Also see their "Resources" page:
http://www.iimaonline.org/resources.html 

The IIMA holds quite a few functions and forums, which provide great
opportunities to meet potential partners for your  marketing needs.
See:
http://www.iimaonline.org/events.html  
http://www.iimaonline.org/phorum/

"It's Not What You Know (It's Who You Know)" which enables businesses
and potential partners and affiliates to network with each other:
http://www.itsnotwhatyouknow.com/BusinessNetworking.aspx
". Open Addition Channels Of Revenue By Realizing New Business
Connections And Clientele.
 . Initiate New Business Lead Generation Through Referrals And Promotion. 
 . Discover Hidden Connections To Build & Strengthen Partnerships By
Mapping Out Your Network.
 . Share Ideas & Solve Business Problems With Network Members. Seek
Advice From Appropriate Resources By Filtering Contacts."

The Grapevine:

Never underestimate the power of word of mouth (a.k.a. gossip). The
next time you're at a conclave for online businesses or online
pharmacies, quietly ask around. You'll undoubtedly learn a lot about
what kinds of promotional strategies have worked for other companies,
which promotional consultants and/or referral networks produce great
results -- and which ones don't.

"The Affiliates Directory":  Health category 
http://www.affiliatesdirectory.com/directory/health/
See if you can get MedCenter listed here as looking for affiliates.
Contact the directory's maintainer at:
http://www.affiliatesdirectory.com/contact-us/

Keeping Up-To-Date:

I found the "Search Engine Journal" helpful for keeping up with what's
happening in Internet-related industry, including marketing issues:
http://www.searchenginejournal.com

"Marketing Magazine" is an invaluable resource re: the marketing and
advertising industry in Canada:
http://www.marketingmag.ca/

"Marketing Terms.com" is a great online dictionary for easy lookup of
various marketing terms:
http://www.marketingterms.com
Plus, it also has numerous articles and links re: marketing strategies.

Groundzero Webmaster Resource Center:
http://www.ground-z.org
has some terrific articles for and about Web-based business.

Directories:
Here's AdFreaks' massive directory of all kinds of marketing agencies,
all over the world:
http://www.ad-freaks.com/agencies.html

Canada's best marketing and promotional organizations, as chosen by
AdFreaks.com (the online counterpart to Canada's "Marketing
Magazine"), are listed by category, at:
http://www.ad-freaks.com/top10.htm

"The Marketing North America Resource Directory" is good, all-purpose
reference source:
http://www.marketingnorthamerica.com/
"Whether you?re looking for advertising agencies, new job
opportunities, trade shows or brand strategy specialists?you?ll find
all the resources you need at MarketingNorthAmerica.com."

Your 3rd question: "What other factors should we consider to make our
CPA sales strategy successful?"

Here are some articles that illuminate potential pitfalls, drawbacks,
and problems with CPA and similar programs, like CRM (cost per
thousand), with respect to all-important metrics and objectives:

ClickZ's July 2003 article  "Averages Can Kill Your SEM [Search Engine
Marketing] Campaign," by Kevin Lee:
http://www.clickz.com/experts/search/strat/article.php/2240031
Discusses potential pitfalls in CPO (cost per order) and CPA campaigns.

Also see Lee's related February 2003 article at ClickZ, "The
Acquisition Price Is Right":
http://www.clickz.com/experts/search/opt/article.php/1587031

Scott Brew has an interesting piece "Internet Advertising 101:
Effective Performance-Based Marketing" in the June 2002 issue of Media
Post:
http://www.mediapost.com/dtls_dsp_mediamag.cfm?magID=120545
"Identifying Cost Per Action (CPA) campaigns that have a reasonable
likelihood of success is an art form. It takes (Internet) years of
experience. But I?m a friendly guy and I?m here to help. Here?s my
personal four-point vetting process . . ."

Mark Redetzke's ClickZ January 2004 article "Agencies and SEM: Howdy, Partner" :
http://www.clickz.com/experts/media/agency_strat/article.php/3303771

"Advertising Model: Cost Per Acquisition," by Todd Kellner at Ezine-tips.com:
http://ezine-tips.com/list-tips/list-advertising/20000706.shtml

See this interview with Advertising.com's CEO and founder Scott Ferber
in this undated edition of "Silicon Alley Daily"
http://siliconalley.venturereporter.net/issues/sar12282000.html
Scroll down the page to the interview, in which Ferber discusses the
current impact, and possible future of, CPA and CPM.

But I also suggest that you explore and consider options beyond CPA: 

OTHER FACTORS/ CONSIDERATIONS:

You may want to consider using some other methods, such as cost per
click (CPC), cost per thousand e-mails (CPM), and CPC (a combination
of CPC and CPM). Those are additional approaches you may want to
consider and discuss
with these agencies and networks I've recommended.

One resource I listed for you, The Marketing Network (TMN),
specializes in CPC and CPM:
http://www.themarketingnetwork.com/moreinfo.htm

Also consider a broader and more complex approaches, such as those
services offered by CentrPort, Inc.:
http://www.centrport.com

See their full complement of "Solutions":
http://www.centrport.com/solutions/index.html

From CentrPort's "Overview" page:
http://www.centrport.com/overview/index.html
"CentrPort's suite of enterprise marketing solutions enables
organizations to convert each one of these mass marketing interactions
into a unique one-to-one dialogue designed to better acquire, retain
and grow customer relationships. CentrPort's E-Business Marketing
PlatformT quickly transforms a company's existing mass marketing
systems (e.g. ad servers, call centers, websites, etc) into a
coordinated one-to-one marketing platform capable of learning from
every customer interaction and responding in real-time with the most
timely, relevant and appropriate marketing message."

Also see the "Wild Impact" marketing/consulting firm:
http://www.wildimpact.com/whatwedo.htm
" . . .services include corporate identity, interactive marketing,
incentive / loyalty, and direct response programs aimed at building
brand equity, maximizing budgets and improving the bottom line."

METRICS ANALYSIS:

You might want to consider a full Web metrics analysis of your site
and installation of analytic software.

Check out Ominiture:
http://www.omniture.com

http://www.omniture.com/implementation.html
". Full On-Site Needs Analysis 
 . Identify online goals and objectives and determine metrics to be collected 
 .Review the complexity and architecture of deployment 
 .Business Process Review 
 .Compare and analyze current web site success metrics and
  decision making processes 
 .Assess the strengths and weaknesses of the current or previous
  solution 
.Customization of SiteCatalyst? 
.Identify of all metrics required for web analysis success 
.Make recommendations for easy SiteCatalyst setup 
.Data Migration 
.Importing existing data into the SiteCatalyst reporting database 
.Implementation Assessment Results and ROI 
.Present the results of trial and analysis" 

Search Strings Used In Answering This Question:

" 'cost per acquisition' AND CPA AND networks"
" 'cost per acquisition' AND CPA AND networks AND Canada"
" cost per acquisition agency"
"reputable AND 'cost per acquisition' "
"reputable AND 'cost per acquisition' AND Canada"
"CPA AND 'cost per acquisition' AND networks AND pharmaceutical"
" 'cost per acquisition' AND CPA AND organizations"
" 'cost per acquisition' organization"
" 'cost per acquisition' AND referrals AND commission"
" 'cost per acquisition' AND referrals AND commission AND Canada"
"'cost per acquisition' AND referrals AND affiliates AND commission"
" 'qualified traffic' commission referrers"
" 'increase traffic" AND 'cost per acquisition' "
" 'cost per acquisition' AND pitfalls OR problems"

I hope my research is of help to you. If you need help navigating any
of the sites I've provided for you, or if you require clarification on
any aspect of my answer, please post a "Request For Clarification,"
prior to rating my answer, and I will be glad to assist you.

Regards,
nancylynn-ga
aglassey-ga rated this answer:5 out of 5 stars and gave an additional tip of: $20.00

Comments  
Subject: Re: CostPerAcquisition Relationships
From: nancylynn-ga on 26 Feb 2004 11:30 PST
 
Thank you for the generous tip.

I'm very glad I could help you. Best wishes to you and your company!

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