Quote:
Originally posted by Vick@Feb 21 2005, 07:33 AM
Very interesting but .....
... there is still a "labor" factor. Someone has to do the work to get the eyeballs to the sites
That begs the question
Is it more cost efficient to have labor done in house?
|
There is a formula you would have to create to keep acquisition costs to your target.
Minimum wage paid, comssion bonuses on signups generated, minimum number of signups generated and how much time it takes to generate them. I'm sure that you can pay someone an hourly wage and a per signup commission and still keep your acquisition costs lower than they would be with an affiliate program. If your employee doesn't meet the quoat assigned to meet your cost objectives, it's time to find a new employee. Sure you would have to deal with attrition, but that has always been part of an affiliate program as well.
Another positive benefit would be control over how traffic is generated and how the sites are sold to surfers, which could affect member retention and member values. Increase member values, decrease member acquisition costs and guess what grows
