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We are a ppc publisher and signed a contract. Within this contract was a clause:
a)“Net Revenue” is after a percentage reduction from Gross Revenue (maximum 10%) for agency sales commissions, costs of sale, discounts and referral commissions.
When we started we got the agreed percentage of the bid price, in other words, if an advertiser was paying £1 for a click and we were on 50% we got 50p. There was no 'percentage reduction from Gross Revenue'.
However, last year they started to phase in this "agency sales commissions" charge and after a few months were giving us 50% of 90p rather than the £1 bid. In otherwords we were now getting 45% of the 'bid price', not 50%.
Fair enough, its in the contract.... BUT, as a publisher it is extremely difficult to know that they were doing that with the figures they provided. There was no notification and we found out by pure chance.
Has anybody else experienced this and what was your reaction?