Aug 19 2009
eBay Partner Network – Quality Click Pricing
This morning I had a chat to Julia Nisted who is European Affiliate Manager for the eBay Partner Network and she outlined some very interesting changes to the commission structure of the affiliate program planned from 1st September 2009.
Currently eBay pay out a CPA on new users and a percentage of revenue from sellers fees but from 1st September they are going to switch to a new concept which they have called Quality Click Pricing. As the most simple level this is a switch to CPC payouts which may seem like a strange step at first but the CPC payment is going to be based on the quality of the traffic and vary for each publisher on a daily basis.
The quality algorithm is based on both the short term and long term value of the click to eBay with various elements deciding an EPC on a daily basis. For example sales completed closer to the click time would be valued higher as there is more direct evidence that the click contributed to the sale. In some ways this is an attempt to vary the ‘last click wins’ approach that is currently in place with most affiliate programs and to help content affiliates and others who produce quality sites. Since eBay can tell what a click from a specific affiliate is normally worth to them then it’s a creative way to pay appropriately.
Julia said that the motivation for this change was to see their good affiliates rewarded with higher payouts and their bad affiliates to earn less as an incentive to improve. eBay believe that some of their smaller affiliates are providing some of their best quality traffic and so this allows them to invest in growing that side of the network. During the beta test they also found that it encouraged some affiliates to work on improving their traffic either through developing their own sites or looking at their traffic sources.
More info is available on the eBay blog including the official press release.
From my point of view it seems a bold move and I hope it’s one that works out well. It’s nice to see a creative approach to solving a problem and they seem to have avoided the Adsense approach which leaves you without a clue about why some clicks earned so much more than others. I’d be really keen to hear in the comments any other opinions or from people active on the eBay Partner Network about how you think the change will affect you.
As a side note we also discussed that eBay doesn’t seem to be talked about much in the UK affiliate marketing community and I wasn’t totally sure of the reasons behind this. Are many of you active on the eBay network? Given that eBay.co.uk’s unique audience was over 17m in June this year it seems we are all buying and selling there but not talking about the affiliate program!