Tuesday, May 06, 2008

Is Nuffnang working for us?

Some people accuse me of being anti-Nuffnang when I posted the Is Nuffnang ripping us off? series (Part 1, Part 2, Part 3). One girl even lamented I know zilch about business when I demanded more transparency and questioned their 70:30 payout ratio (btw, this 70:30 business is a guess because I don't know what goes on in their Accounts dept).

Their explanation (see Nuffnang's FAQ - should really be FAFI, frequently asked frequently ignored!) of what banding means is as good as not telling us in the first place. Nobody knows what banding means and how exactly the final ads payment is being calculated. You could post two ads on the same blog, and get two completely different pay bands - like 1 and 7. Whatever 1 and 7 mean!

I carried out the most unscientific poll (using Nuffnang's latest widget) to help me overcome my stress ulcer and answer the following question: Would you like to know Nuffnang ads pay/fee structure and distribution?

At the time of writing, 79 responded to the poll (FYI, I only answered once, no point cheating).

60% want to know the exact payout structure and distribution. The 40% essentially don't give a hoot.

60% want to know more. That's 2/3 according to my rusty maths, enough to form a strong majority according to Malaysian parliamentary standards.

I hope after numerous attempts to get them to respond, Nuffnang will eventually offer a better explanation as to what banding means. My fingers remain crossed.

Now why do I need to know?

ONE. I believe Nuffnang runs an honest business. For me, whatever goes on in their shareholding company (Nuffnang Sdn Bhd?) has no ethical bearing on Nuffnang going concerns. But if bloggers are persuaded by Nuffnang's cause, they should at least get some idea as to how much their blog traffic (and time) is worth to Nuffnang and how the ads revenues are finally shared out.

TWO. Blogs have commercial value, even the crappiest stuff you regret visiting. I feel that blogosphere as a whole is an under-valued advertising avenue. Our readership and reach are many times more than print and broadcast media, and yet we charge and get peanuts for running ads. Having blog ads agency like Nuffnang and Advertlets, we are effectively allowing a third party to value the community commercial value. And by third party, I meant a committee of newcomers eager to fight and scrap for a living. A high level of transparency can and will drive up our market value. So everyone wins - better reach, better value.

THREE. I am a busy-body but I also secretly (not a secret now!) want Nuffnang to evolve into an online ad powerhouse - and not another corporate thief. Tim and Ming will get bloggers support (SSL included) as long as they keep Nuffnang HONEST and FUN!


We scratch your back, can you scrub ours now?

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