Forum Moderators: skibum

Message Too Old, No Replies

How do you deal with inflation?

Because if it's not an issue for you yet, it might be soon...

         

ronin

8:00 pm on Jul 21, 2008 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



In some parts of the world, inflation is getting pretty serious, folks.

With something like Adsense you have less to worry about. As the money supply increases and money is worth less, AdWords PPC campaign managers will bid more for the same placements and publishers will receive their percentage of those higher bids.

With percentage-based CPA commissions, the same thing applies. End-customer prices go up, so do your commissions.

But what about fixed commissions?

If you currently get paid USD10 or GBP5 per unit sale, how do you plan to deal with inflation as your own daily living costs go up and the commissions don't?

Will you:

1) Hope that programme managers will "play fair" and raise commissions in line with inflation without being asked? <cough>

2) Negotiate with programme managers (either directly or through the networks) for commission increases in line with inflation?

3) Start exporting to the Euro-zone or to other areas where the currencies are stronger than the sharply falling dollar and sterling?

4) Start promoting more programmes. Run a little faster on the hamster-wheel, just to keep up?

A combination of 2) and 3) are my preferred options.

skibum

4:42 am on Jul 22, 2008 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



For me it is slowing sales because people seem to be maxxed out of which inflation is a part. If you can hold down your own fixed costs, though (don't drive much, buy stuff on sale at the grocery store or start a garden & things like that) then it is a lot easier to get by. A number of BIG clients & former clients on the agency side are now operating in the red because they built a bunch of houses nobody can afford and retail sales in some sectors are totally in the tank in the US. If a site can send buyers, that site is going to be an increasingly valuable partner and will probably have some negotiating room.

idolw

6:39 am on Jul 22, 2008 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



for me, currency exchange rate is the problem. our currency is the strongest in history, our salaries are highest in history and we export.
that means layoffs for us in order to keep pace.