Comments on: Nuffnang going for Revenue Sharing model?

By: Paul Tan

Paul Tan — Sat, 01 Dec 2007 22:15:57 +0000

There are many local ad representative networks around, Nuffnang and Advertlets are just the first ones that target blogs. The two big players are Innity and Pixel Media Asia.

By: Paul Tan

Paul Tan — Sat, 01 Dec 2007 22:13:20 +0000

If a campaign costs X amount, the media buyer (companies like Mindshare, Carat, Zenith Optimedia) already take about 15%, then Nuffnang takes a further say 30% from that remaining 85%, what the blogger gets is actually 70% of the 85% of the original amount.

Revenue share is how all ad networks work, I am personally signed up with Pixel Media Asia and we work on revenue share as well.

By: GeminiGeek

GeminiGeek — Sat, 01 Dec 2007 10:45:33 +0000

@Trixie: So, what you mean by revenue sharing is the widely use affiliates or referrals thing?

@Danny: I think so too. But one more thing to add is that they could be growing too fast. I wonder if they’ve really made a market research to see if expanding to Singapore is a wise choice. That could be one reason they start charging $1 for every cheque withdrawals. It’s not much, but a lot of publisher starts bitching about their missing $1.

If they’re really operating in the type of revenue sharing model that I am talking about, I guess it’s time for them to adjust their own profit level, since they didn’t disclose how much are they earning openly. Unlike TLA where they’ve made it clear where they earn 50% and the publisher earns 50%.

By: Danny Foo

Danny Foo — Sat, 01 Dec 2007 09:59:03 +0000

You have brought a valid point I may have missed out there.

However, I’m assuming they’re not making enough because it’s not the advertisers who’re approaching them at the moment. Although Nuffnang and Advertlets may be the only local people doing this, a business in Asia is always a challenge against its business culture as well.

In other words, advertisers say propose to me a plan. They go in and make sure they win the signing. Now this signing may be inclusive of 30%, less or more though as the publishers we don’t know.

So Nuffnang may not be making enough because they’re establishing their brand at this point and want their name to be #1 when an advertiser wants to use blog advertising.

By: Trixie

Trixie — Sat, 01 Dec 2007 04:42:41 +0000

Maybe it’s just a semantics thing; my understanding is that revenue sharing means affiliates get a percentage of sales as opposed to pay-per-click, pay-per-sale, or other methods of figuring rewards for affiliates. While it’s all ultimately revenue sharing, that term seems to be used to mean affiliates are paid a percentage.