Paying For Conversions In Online Advertising

There is a strong debate in the online advertising world over who to pay for a successful conversion from an advertisement and how it should be decided who it is that you are going to pay. Contributions are made from numerous sources when a conversion is made but if you pay all of those sources, you will be losing money on the transaction. It is only logical to pay one person or company for a conversion and deciding who it is you pay can be very difficult.

Everyone is going to try and take credit when a conversion is made. If you are an advertiser who is using ad servers and other forms of advertising to help sell products or services on your website, you know this all too well. You may receive bills or be charged by several different people and companies for the same single conversion that was made using an advertisement linked to your website. You do not want to have to pay all of these people for the same thing.

All over the internet you can find things about how conversions work and the process that is used in a conversion. For that reason, this article is going to focus on something that is not talked about as often but is actually more important than just knowing how a conversion works. This article is going to focus on how you can decide who to pay for your conversions and how you can do it in a manner that will satisfy everyone who wants to and expects to take credit for the conversion.

Let’s start by looking at a few examples to see how this process works and where the problems begin at. If you own a cell phone you have likely run into this situation many times before. You are writing a text message on your cell phone when you get a call coming into your phone before you can finish writing the message. You do not send the message; instead you answer the phone call. After talking for a few minutes, you hang up your phone, finish typing your text message and send it off. Your cell phone provider is not going to charge you for sending two text messages because you started to type it at one point and then finished and sent it at another time. In the online advertising world however, multiple sources try to collect conversion fees for making just one sale.

For anyone who works in the retail industry or who has ever worked in a store where commissions and bonuses are given, the following scenario has probably happened to you before. You are working with a customer and the customer is deciding if he or she wants to buy a very expensive watch. You talk to the customer for over an hour and the customer simply cannot make up their mind and they leave the store undecided if they are going to purchase the watch. A few hours pass and you go off and decide to take your lunch break. While you are on your break, the customer enters the store, buys the watch and leaves in a matter of minutes. You may deserve the credit and commission for making the sale but no one is going to give you it when you were not even in the store when the actually sale happened. The same thing happens online when sales are made and everyone wants to take credit and get paid for the same sale.

When you award credit to someone, you are saying that you feel comfortable singling out an individual for making a sale or leading to a sale. You need to be certain that the person who you single out is by far the most deserving of the credit because only one person can receive credit for a certain task and you do not want to give credit to the wrong person and leave the deserving person out.

When something is this difficult to manage in the outside world, just imagine how much more difficult it must be to manage in the online world when you cannot actually see or watch the transactions taking place. This makes it so much harder to decide who deserves credit because you have never actually talked to or even met the customer who is buying your product or service. You do not know exactly what it was that led them and convinced them to make a purchase from your website.

Advertisers have enough to worry about as it is, they should not have to worry about who they are going to pay for a conversion and how to deal with the people asking to get paid for the same conversion that are not going to be paid. Double paying or even triple paying for a single conversion happens thousands of times a day to internet advertisers and the worst part of that is that some advertisers do not realize that they are paying people for the same exact conversions. It has become a huge problem in the online advertising industry.

One solution to this problem is to choose a method to select how you are going to decide who gets paid for a conversion and stick to that method no matter what. For example, if you choose to pay whoever had the most recent contact with the buyer for a conversion, you will be whoever had the most recent contact with the buyer in every conversion and never change who you give credit to no matter what. All of your advertisers and ad servers and related acquaintances should be made aware of how you choose to reward them for conversions so two people or companies will never try and charge you for the same conversion.

You should never have to pay more than one company for a conversion. Every time a sale is made, only one company should receive credit and payment for the conversion otherwise the advertising would be useless.

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By: Naor

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