Goto Reduces affiliate cpc

[Brett_Tabke]

Received: from soplisa-dk2.corp.go2.com (unverified) by corp.go2.com
Thu, 22 Mar 2001 10:06:19 -0800
From: GoTo Search-in-a-Box <[e-mail]>
Date: Thu, 22 Mar 2001 10:04:35 -0800
Subject: Important Change to Your GoTo Affiliate Account

Dear GoTo Search-in-a Box Affiliate:

GoTo's Search-in-a-Box (SIB) program offers you a simple way to earn money
while offering search functionality to your users and driving traffic to
us - a winning business proposition for both GoTo and you!

In order to maintain this program, we are making a pricing change to
ensure that we can continue to offer this income opportunity to you. As a
result, we are lowering the amount earned for the SIB program from $0.03
to $0.02 per click-through for Web Search. This pricing change will
become effective April 1, 2001.

Maintaining a GoTo Web Search box on your site is still a great way to
enhance your web site and help you generate income. We hope that you will
continue to offer GoTo Web Search on your site. If you would like to
continue as a SIB Affiliate you do not need to make any changes to
continue earning cash for each click-through. However, if you wish to
terminate your GoTo Search-in-a-Box Affiliate Program Agreement, please
email us at [e-mail] with a note stating that you would
like to deactivate your account.

Thank you for being a part of our affiliate program. We look forward to
continuing to work with you in the future.

Sincerely,

John Gentry
Vice President, Affiliate Business Group

[rcjordan]

Yeah, BT, and the affiliate troops aren't happy -but they never are. GoTo is supposed to report "better than previously forecast" financials today (tomorrow?). So far, it's been mostly PR spin to make the analysts happy and bump the stock. Nowhere have I seen any mention of the .05 minimum bid and the reduction of the affiliate pay-out mentioned as part of the reason they are projecting better numbers now.

[Brett_Tabke]

They require .05 per click, but are only willing to pay .02?

(just a little something extra to think about for those keeping score at home)...

[rcjordan]

>mostly PR spin

Now you know I'm a little cynical, but read this first then look at the title of the article... Doesn't it seem a little premature to say that GoTo is "going the distance" ???

The company didn't say by how much it now anticipates exceeding its earlier guidance, or whether the news will have any effect on its estimates for reaching profitability, which the company last said it anticipates occurring in fourth quarter.

It's not much for investors and analysts to go on, but the news is still reassuring for an otherwise unhealthy sector...

GoTo Going the Distance, Despite Industry-Wide Turmoil [internetnews.com]

[backus]

*sigh* Did we really expect anything else. Why not just make all search engines free? That way everyone would be happy.

[Mike_Mackin]

not everyone

consider the investors from
idealab! Capital Management I, L.L.C. ("ICM")
idealab! Capital Partners I-A, L.P. ("ICP I-A")
idealab! Capital Partners I-B, L.P. ("ICP I-B")
et al