Tuesday, April 29, 2008

Is Nuffnang ripping us off? (The Truth Part 2)

WishBoNe: I don't know about the 30/70 for Nuffnang. But I've been using a few methods to monetise my blogs and the only one I know that is using 30/70 is Linkworth. I get paid 70% for whatever I have been given per task.

SSL: I am guessing that NN's 30/70 is just a ballpark figure (read the original article here: Nuffnang take at least 30% of those ad revenues), and that this is not set in stone. The exact payment distribution could well be done based on their kind discretion or based on some arbitrary numbers. If NN tells us what band means and what amount each band corresponds to (and how they assign those figures), instead of some vague desription of the volume of traffic our blogs are getting, I will immediately revise some views. I understand that revealing too much might give its rival company a competitive edge (one friend pointed out that rival ad agency might start undercutting), at least offer us a better explanation and description of the payment structure instead of the present non-descriptive one (as found on NN's FAQ).

Leslie (no email/url included): if you look around all ad networks commission of ad networks finding ads for you goes from 30%-50%. if nuffnang is really taking 30% then it is quite generous. personally i think 30% is considered really low. if nuffnang brings in $1,000,000 a year, 30% is $300,000 for nuffnang. $300,000 to pay for their staff costs, server costs, office rent, phone bill etc for a year i'm surprised they make any money at all.

then again it is a business choice if you feel you earn more elsewhere then go ahead and switch

SSL: I like this particular comment. Of course, I am free to switch. But you miss my point. I DO NOT WANT TO SWITCH, I am sticking with NN! I am writing as a bona fide user to a company that I admire (yes - shock, horror, horror - I admire them). Advertising is a tough industry and with the current economic slowdown I reckon it will be even more challenging (advertising will be one of the first expenses to go in any typical cost-cutting exercise). It is a brave decision for two young entrepreneurs to enter this industry, I don't have the nuts to even consider it! I am supporting them as a user, as a matter of fact, I have urged some friends to sign up.

The title I chose "is NN ripping us off?" merely describes an internal dialogue. No malice was ever intended. It provokes me to find out more, and I did. Hopefully, it will lead NN to provide better explanation because the majority of NN bloggers DON'T EVEN KNOW WHAT BAND MEANS, AND WE DON'T KNOW WHAT GOES ON BEHIND THE PAY-OUT SCENE.

Some businesses in the local scene enter a tough market for a different purpose altogether; money laundering and a shell for tax evasion to name a few (I'm not suggesting NN are doing those activities). So it does not hurt to give clearer and better explanation - right?

SloppyChic: well, those who get the bigger pie of share are those who are popular, and the rest of us are just peanuts who complete the whole community...

SSL: Monetizing blog encourages regular blog updates, and blogging with more interesting and engaging materials. Much of the recent blog culture/content can be attributed to the money culture in blogging. Cash and money will shape the future of our blogosphere landscape, and I believe more quality stuff will emerge from it. That's capitalism.

Every popular blogger began life as a peanut in the community. I am also a peanut, just older.

~YM~: 30% is really low, cos if u compared to those 'charity' organization, they take up to 90% and give the 10% to charity. And mind you, that 10% is after all expenses had been deducted. -.-"

Seriously, what you are thinking of is sometimes like the boss and worker thinking. The worker always think "I work so hard for the boss, how come I got so little pay? I earn millions for the boss, and this meagre pay of my salary is too little la"

If you have a blogger union, even the rep may not know how to get ads. If that rep had learnt it, he'll be dissatisfied and he may tried to get a higher share for himself from the ads as well.

SSL: You are right about unions, there will be little incentive to fetch delicious deals as the margins are fixed and usually low. Yep, they may eventually leave once they learn the business.

No, I don't think as a worker. I just want more information as I am also part of the enterprise (as a user)!

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