IQ News: Pay-for-Perfomance Offered By emaildirect

Opt-in marketer emaildirect says it will put its money where its mouse is with a new performance-based pricing scheme for its Value-mail service. The company’s e-mail newsletter bundles coupons from advertisers with geographically-targeted regional and local offers. The new deal, introduced today, lets advertisers pay for click-throughs and customer acquisitions, rather than by number of names mailed to.
Payment will be negotiable, although Gary Brooks, president and director of new business development for the Aliso Viejo, Calif.-based company, estimates it will run from $1 per click-through to $3 per sign-up, with a typical agreement lasting a year. The standard pay-per-e-mail model will still be available.
Online video and DVD retailer, New York, will utilize the new pricing structure in an upcoming campaign, while Web Marketing, Coos Bay, Ore., is negotiating the new option on behalf of Fairfax, Va.-based client Mobil Oil., the San Francisco purveyor of supplements, is also considering the new pricing structure. “I’m always looking for creative ways to reach customers one-to-one,” said Sarah Bacon,’s marketing manager. “If a company is willing to take that ride with me, they’ll get a better response from me.”
Competitors, however, challenge customer response. “Early on, we gave clients a choice between standard and incentive pricing,” said Ray Kaupp, vice president of marketing at emaildirect competitor Digital Impact, San Mateo, Calif. “It’s complicated, hard to account for and nobody seems to want it.”
–Susan Kuchinskas