PayPerPost Direct Challenges ReviewMe And Fails

I was checking the blogs in my Google reader and noticed that Kumiko made a post about PayPerPost launching a new service call PayPerPost Direct that allows advertisers to order reviews directly from a blog.

To get started simply drop the appropriate HTML snippet into your blog template. Advertisers that come across your blog and love what you do can then click on the image in your blog and create an opportunity just for you. You’ll get an email with the opportunity details and offer amount and can then log into PayPerPost.com to actually negotiate terms with the advertiser to get the very best deal for you both.

At first, this looks like a challenge to ReviewMe, which recently created a advertiser marketplace that is much like PayPerPost. Upon closer inspection, PayPerPost Direct lacks a key element (for now) to complete against the ReviewMe publisher marketplace – PayPerPost doesn’t have a publisher marketplace.

ReviewMe has a directory of all their publishers that will do reviews. While all ReviewMe publishers have the option of displaying a “Get reviewed by this blog for $400” button, most review orders come because of the marketplace and not because an advertiser visited the blog and saw the button.

PayPerPost currently lacks this directory of publishers and that makes it extremely difficult for blogs to get any review orders. If there’s no publisher marketplace, the chance of an advertiser stumbling upon your blog to find a PayPerPost Direct button is very slim. And if the advertiser found you directly, why not deal with him directly instead of through PayPerPost? On the good news side, PayPerPost tacks on only 10% to your direct price as their fee. That’s a lot better than the 50% commission ReviewMe takes. However, 50% of something is better than 100% of nothing.


78 thoughts on “PayPerPost Direct Challenges ReviewMe And Fails”

  1. Matt Jones says:

    Perhaps PayPerPost are still working on building their publisher marketplace, it seems likly they will after this bad press!

    1. Kumiko says:

      One of the software developers at PPP gave the impression in a comment on my site that they were working towards a marketplace. When (if) this happens, I think it’ll have real money making potential. But until that time….contact me directly for a discount review!

      You hit the nail on the head with the “50% of something” line Mr Chow!

      Kumiko

      1. Mubin says:

        What the hell’s someone gotta do to get some link love around here”?

        1. Marc says:

          Write a great post like Kumiko did 😀

        2. Kumiko says:

          I don’t think comments like that are the way to go. You could always purchase the $10 comment links! Much easier than writing an article!!

          1. i disagree kumiko

            the new posts have not got any pagerank yet.

            unless john opens up the comments on the old posts, i won’t pay

          2. isnt page rank by website rather than pages?

          3. Marc says:

            It’s by page, but page rank exists whether you can see the little green pixels or not.

      2. Court says:

        It actually says right on the PayPerPost blog that a publisher marketplace is on the way. When it’s there it will be awesome for all of us.

        1. Marc says:

          Yeah I’ve been hearing lots of bits and pieces all leaning towards an imminent release of a marketplace. I figure it’s coming soon, but soon isn’t now…

        2. Kumiko says:

          Hasn’t AGLOCO taught us not to call anything awesome until it’s arrived? 😀

          1. haha soo true…AGLOCO will come in december 2007

      3. Derrich says:

        The service will definitely give ReviewMe a run for its money. Espcially with the reduced commission PPP takes. It’s only a matter of time. My concern is how the competition between the two will effect the prices we can charge.

        Top earners on PPP earn about the same as ReviewMe earners (from what I’ve seen), and all they do is browse the opportunities that are made available to them based on parameters set by the advertisers (Alexa, Google PR). No need for advertisers to come find them. Having the ability for advertisers to now do this will definitely be in favor of PPP.

        It seems like only the TOP ReviewMe bloggers are reaping the benefits when there are plenty of potentially good bloggers out there (with the required ratings) that get overlooked because they have 2 stars…since that’s what we start off with.

        With PPP opportunities, you can at least create a reputation for yourself with several reviews. Everyone has a chance to make or break themselves. Just my $0.02.

        1. Marc says:

          I don’t think either one is going to run away with the title anytime soon. One’s high end, one’s low end. It’s going to take a lot for either one of them to make a move into the other’s market.

          PPP has the most to gain moving into the higher end market, ReviewMe has the most to lose given that they have the high end market and would be moving into the low end.

          Consider the devaluation of the brand if Bentley decided to put out a sub-compact selling for $15000. That’s the risk ReviewMe faces looking forward.

          1. hmmm, great comment marc

      4. Anna says:

        You’re asking people to ignore the ReviewMe button you have on your blog Kumiko and contact you directly? Or maybe I’m reading it wrong…

    2. Nomar says:

      PPP, I dont like them either

  2. weirdoux says:

    that’s a damn good review john. well, i have my own thought also. and i already post it in payperpost blog.

    just wait and see….

  3. msdanielle says:

    i had the same exact thought. what would stop an advertiser and publisher from just negotiating a direct ad placement? but you’re right…50% of something is much better than nothing…

    1. Mubin says:

      John DOesn’t do this. Trust me I tried to entice him.

      1. Marc says:

        There is a question of which relationships you value most in this. While you might get a quick score with an individual advertiser, by maintaining a solid relationship with a broader marketplace you will expose yourself to many, many more advertisers. Going direct can affect that relationship negatively.

        1. msdanielle says:

          for larger sites like JC i can see how letting PPP or TLA manage these many advertisers is a benefit. but for smaller bloggers, they may have to take what they can negotiate independently. doshdosh has written some very informative articles on how to do this.

      2. it’s not worth it for jc

        payperpost would accept johnchow.com, unless they do it as a one-off exception

  4. Luke says:

    You should try putting the PPP Direct badge right below your ReviewMe badge and offer, say $350. Which one do you think would bring in more money to you?

    1. I agree, I don’t see how you can say PayPerPost fails. I can’t imagine they’re not working on a marketplace for advertisers to find publishers as well.

  5. Sabrina says:

    My jury is still out on both ReviewMe and PayPerPost…

    1. Marc says:

      It will be for some time to come too. Then there’s the 600 pound gorilla in the room with the Google logo on his back that may decide to trash both companies big time.

    2. msdanielle says:

      same here. waiting to see what the jury comes back with…

  6. 10% is reasonable and may offer some protection(what?) to both parties.

    Question about the ReviewME Marketplace:
    Can you search for your own blog? I can’t find my blog or the search is intelligent that it filter out my blog. Plus, I can even see what I’m charging? (I did one ReviewMe last week)

  7. Ted Murphy says:

    First off anyone who reads this blog on a regular basis has to realize John is biased towards ReviewMe, which is fine I have no problem with that. However, it is hard to argue with the numbers.

    Would you rather keep $200 on a $400 advertiser spend or keep $360 on the same spend. That is a no brainer. I would much rather have the maximum amount possible.

    So let’s put your theory to the test. You say that the money comes from advertisers finding you through the ReviewMe marketplace, not the other way around. Let’s assume you are 100% correct (which I don’t believe you are, you already had a following before ReviewMe).

    Now let’s say you remove the optional ReviewMe badge at the top your blog and replace it with a PPP Direct badge. You will still be listed in the ReviewMe marketplace, and the transactions they generate won’t be lost. However, the transactions YOU generate now come with an HUGE increase in the money you put in your pocket. You get the best of both worlds.

    I do agree with the need for a directory of participating bloggers. We will be releasing a blogger directory in the near future. We want to work out any issues before pushing this on a large scale to our advertisers.

    O.K. So, let’s get this all straight:

    Our marketplace charges only 35% while Review charges a 100% markup (not 50%, they take 50% of the charge which is not the same). Ontop of that PPP Direct transactions happen a 10% markup. The Directory is just around the corner. PPP Direct is far more elegant than any other solution out there. What did I miss?

    For more information go here:
    http://blog.payperpost.com/2007/05/part-one-of-birdo-release.html

    For a video go here:
    http://blog.payperpost.com/2007/05/payperpost-direct-overview.html

    1. Kumiko says:

      You’re obviously new here Ted. Don’t you know it’s all about the relationship:

      http://www.johnchow.com/its-about-the-relationship/

      But the PPP model isn’t really built around building relationships and this is perhaps why many advertisers become disappointed when they receive reviews on less than standard sites.

      You write about showing the PPP badge and cutting ReviewMe out of sales made directly from visitors. Why not show my own badge and cut out PPP too? That’s what you missed!

      Kumiko

    2. Marc says:

      Tip of the hat to Ted for commenting on a post out in the wild.

      The raw dollar amounts aren’t a no brainer though. For all of the high end bloggers, ReviewMe delivers them top dollar advertisers left, right and centre.

      PPP has a handful of advertisers willing to spend money, but by and large they’re out there to lowball the bloggers and see who will bite. The result is that none of the higher end blogger would bother with that type of marketplace.

      While PPP may have a marketplace, it’s a low quality marketplace by comparison. That’s great for low end bloggers, but the bigger bloggers won’t bother exposing themselves to that type of advertiser. It’s a chicken and egg scenario. The better advertisers won’t come until you have better bloggers and the better bloggers won’t come until you have better advertisers.

      Just so I don’t get flamed, by “better” bloggers I mean those that pull a lot of traffic and am in no way slagging the quality of the writing on any of the lower traffic blogs 😉

  8. justinf says:

    😆
    just noticed your “buy me beer” paypal link at the bottom of your postings.

    nice idea!

    1. I think this is sorta dumb. No offense JC but really. ‘Buy me a beer’ looks pretty tacky.

      Keep it around for a month and let us know about how it works for you.

      1. Ali says:

        yeah i’ll admit it’s pretty tacky too.

      2. Tob says:

        I agree 100% for a guy that is making $10k+ a month on his blog, he wants to start a “donate” system. **** that, you get paid by your advertisers, not your readers.

        1. I could see how some people would give money though. I’d buy someone a beer who made me a plugin that I really liked and used.

  9. justinf says:

    i tried ReviewMe and did a review for $5.
    I’m still waiting for payment after several days.

    reviewme is still saying that need to do the review, even though i’ve submitted the url to them.

    very odd. Errant hamsters in the reviewme cages?

  10. Mubin says:

    John Are you now taking donations 😯 😯 😯 😯 😯 😯

    I just saw the Buy Me A Beer Button!!! 😯 😯 😯 😯 😯

    1. John Chow says:

      It’s a new plugin I’m trying out. Looking for the post at 1:00PM.

      1. Derrich says:

        Love it. Might steal it. Love beer. Alot.

  11. gdubs says:

    god, you are getting pretty shameless with that paypal button.

  12. justinf says:

    just bought him a beer.

    i owe him SEVERAL beers for that Google Supplemental post. awesome posting John. thanks.

    1. John Chow says:

      Hey thanks! I could use one too. 😛

  13. the sad thing is that if you really review the people (companies, domains, etc.) who are advertising with PayPerPost you will notice about 85% of them are somewhat related to PayPerPost or they are owned by PayPerPost or they are part of their sister company Mindcomet. So if you really get down to it they are pretty much full of themselves!! Not really a trustworthy company in my eyes.

    1. Anon Y. Mous says:

      Can you back that up with facts?

      1. you can see the facts for yourself… just review their advertising list of companies and you’ll see… from VooDoo Marketing blogs to simple sites (who are owned by PPP or who his their sister site clients) like the RockStartUp site (owned by PPP), The Break Up Song site (a sister company site), The PayPerPost Direct site (owned by PPP), The Zookoda site (owned by PPP), and SPEED (a sister company site). and that’s just to name a few companies they try to advertise as other companies when in actuality they are owned by them… kind of shady to me!

        1. Marc says:

          I’d hardly call it shady. They’re plugging their other brands using a vehicle they believe in. I believe the MBAs call it synergy.

          There are lots of others advertising ops on PPP, they’re just not paying as much as ReviewMe.

  14. VC Dan says:

    Andy Beard wrote an exhaustive review of going direct with PPP versus the other services. It addresses many of John’s questions and puts PPP Direct into perspective for all bloggers. See PayPerPost Direct

    1. VC Dan says:

      Oops…not sure why href didn’t work above. 😡

      Andy’s review of the various Paid Review options entitled “Exclusive – Pay Per Post Direct Changes The Paid Review Landscape” can be found here:
      http://andybeard.eu/2007/05/payperpost-direct-review.html

    2. VC Dan says:

      that’s odd…retry #2… 😯

      Andy’s full review entitled ‘Exclusive – Pay Per Post Direct Changes The Paid Review Landscape’ can be found here:
      http://andybeard.eu/2007/05/payperpost-direct-review.html

      1. Marc says:

        It doesn’t address the lowballing marketplace that PPP has compared to the top dollar marketplace that ReviewMe has.

        I’m not slagging PPP for that, it’s just an unfortunate fact. Trust me, I’d love to see better advertisers in the PPP marketplace 😐

        1. VC Dan says:

          The beauty of PPP Direct is that it allows you to name your price and even negotiate. As such, analyzing marketplace pricing for PPP Direct is like comparing apples to oranges. Advertisers that are willing to pay your dollar will click PPP Direct at your blog and those that aren’t, won’t. If they do, PPP Direct provides comfort to both sides of the transaction and puts significantly more in your pocket than competitors.

          This is all good input — particularly comments about relationship. So good that I expect early adopters of PPP Direct to gain plenty of benefit from starting/strengthening their relationship with the industry leader PayPerPost.

          The chart below provides some nice perspective on how relationships are already being built in the space — even before PPP Direct launched:
          http://www.floridaventureblog.com/uploaded_images/paid_reviews.png

          1. Marc says:

            While it is comparing apples to oranges, it’s my sense, and seems to be the sense of others, is that other marketplaces have a number of revenue laden advertisers shopping around. From everything that I’ve see, PPP doesn’t yet have this pool of revenue laden advertisers looking to spend.

            I understand that you Dan and Ted both need to defend against unfair PPP slag, but these are the legitimate issues that people are discussing whether they’re PPP fans or not.

            Nothing would please me more than to see this program succeed despite the naysayers. But the lack of a marketplace with big budget advertisers shopping around is a significant issue. At this point in time there seems to be no resolution to that issue.

            The result is that we’re on our own to solicit advertisers to sign up on our blogs. On the bright side PPP’s taking a slim margin since we’re going to have to do the legwork. On the downside, it feels as though bloggers aren’t getting a lot out of this particular relationship.

        2. you probably won’t “see better advertisers”… that’s the sad thing. you’ll get theses companies that are under the umbrella of PPP or their sister site. ones that are owned by PPP. but if they want to waste their money or the investors money then that’s their prerogative… i just wouldn’t waste my time or money with their company

  15. Chicago 2016 says:

    John –

    How many free site reviews did you have to write before you started getting paid for them?

    1. there’s no need for jc to write free reviews

      he’s got followers

  16. That’s right John made the point of getting an audience first. He could do so because he had another venture bank rolling this one. It’s all about the audience. John is wrong about PPP Direct though. ReviewMe just doesn’t have a lot of dollars flowing through it – it really doesn’t. People get caught up when someone does a review for $250 but how many bloggers get those posts – a handful at best. The VC PPP has also helps the situation. They can now afford to be more reasonable in fees. The 50% revenue share structure is absurd in Review Me.

  17. Chicago 2016 says:

    When did John start this blog?

  18. Jenny says:

    I added the button so my site, but I’m not expecting to make anything off of it. It’s just something else to add to my junk collection of a website. LOL

  19. embuck says:

    PPP is really crap, do anyone have problems with slow loading of their pages?

  20. Spud Oregon says:

    I see Kumiko is now using PayPerPost Direct 🙄

    Kumiko Suzuki U-turns on PayPerPost Direct

  21. I just read that payperpost raised another $7 million in capital. I do like reviewme better but I think competition is a healthy thing.

    1. Derrich says:

      They did indeed. I wonder what they’ll do with it.

    2. Anna says:

      Hi Matt, I’ve never used ReviewMe so I really don’t know anything about them except ReviewMe takes half of your asking price and PPP Direct lets you keep all of your asking price.

      There is a big difference there so ReviewMe must be doing something really wonderful for you to like them better than PPP Direct. 😯

  22. Anna says:

    PPP Direct has a marketplace now. Isn’t that wonderful? :mrgreen:

    1. Derrich says:

      Oh, oh. Somebody’s closer! (that’s Happy Gilmore for those of you that…nevermind). 😛

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