Against Google AdSense Referrals

    February 7, 2006

WebMarketingNews quotes Mark Wallace, who says regarding Google’s AdSense referral program, “Turn it down“. Why?

He argues that when you are referring someone, you want to refer that person to the highest-paying network, and in any case where the person get a lot of traffic, Chitika may very well be the better option.

Here’s what I think: Let imagine that somehow AdSense and Chitika earn exactly the same for the same publisher. Now, to earn anything from AdSense, the person has to earn $100 in 90 days, or $33 a month. Chitika pays out 10% of all earnings for the first year. If the person earns exactly $100 every 90 days, then, over the course of a year, Google pays just that $100, while Chitika pays $40 for the year, 10% of $400.

So AdSense is better, right?

Not exactly.

If the person earns $99 in 90 days, AdSense pays nothing, while Chitika pays $39.96 for the year. If the person earns $250 in 90 days, AdSense still only pays $100, while Chitika pays $100 on the year.

So, if you aren’t sure the person can get to $100 in 90 days, then AdSense is useless. If they can, consider that they might be able to earn a lot more than $100. Every dollar they earn over $83 per month, is more money than AdSense referrals would get you.

Of course, there are multiple variables to consider, including which ad type is more appropriate to the website in question (and would thus earn more money). Frankly, all this is why I don’t use affiliate programs, although I won’t hesitate to throw in an Amazon link if I mention something, but if you are going to be recommending ad programs, why not just be a good neightbor and recommend all of them?

(via Findory)

Nathan Weinberg writes the popular InsideGoogle blog, offering the latest news and insights about Google and search engines.

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