Saturday, January 12

Revenue Sharing: A New Model

This doesn't have much to do with frugality, but it's a potentially significant event that I thought I'd share...

After much thought about how to grow the Grokodile blog directory, it finally occurred to me that people need more incentive to link to it. Then, after a lot more thought, it struck me. Why not just share revenues?

For those of you that don't know, revenue sharing is pretty common. For example, a forum will let you provide your Adsense publisher ID and then use that to display advertising when displaying threads that you created. Generally the advertising displays are split based on some percentage and it provides an incentive for you to contribute to the publishers site.

What happens on Grokodile is a little bit different. In order to highlight the differences I've called it open revenue sharing. There are two differences that make it open:

  • You don't need a relationship with the publisher to participate.
  • You don't need to contribute content in order to participate.
It's an extremely simple concept, but it has a lot of power. Most importantly, it lets anyone participate with an extremely low effort level.

It's not an affiliate link. It's not a link sale. It's not even paid advertising. It's a way to link to quality sites that you'd otherwise be willing to link to and be rewarded for it based on the value of the traffic you send out... without having to commercialize your own web site.

There are some pretty interesting theoretical results from this. However, I'll leave that to your imagination for now.

Frugal Guy said...
First time visitor? Start on my blog overview page...

Have your own blog? Please add it to my blog directory!

If you've found help, hope or laughter here, please consider linking to my blog or perhaps a particular post...



Anonymous said...

Good info.Thanks, Annette

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Brian Miller said...

Will your revenue sharing model accept Yahoo/YPN?


Frugal Guy said...

Hi Brian,

The model itself certainly would, but the site itself doesn't at this time...