Posted on February 12, 2008
Filed Under business | Comments Off on Project Wonderful Arbitrage
I’ve been experimenting with Project Wonderful ads on AmigoFish for some time. It’s never made that much money and what it brings in I just spend back out in placing ads myself. I mostly just like the idea of it and the purity of their mechanism even though now the distribution of advertisers skews heavily to the goofy end of webcomics people.
The other day I got a bid on my ad box that in retrospect was probably inevitable. Some third party was bidding on my box with a Dell ad that was certainly some kind of CPA affiliation situation. It makes perfect rational economic sense. If you have a CPA ad that generates you $50 in referral fees per customer acquired, and you can acquire a customer by placing $5 or $10 worth of inexpensive ads via Project Wonderful, why not? I rejected the bid because why I am going to let him do that on my site for $0.03/day? If the bids are going that cheap, I’d rather it be some smalltime knucklehead like me placing the ad than some HP or Dell ad. Still, I figure that unless Project Wonderful specifically bans it on the terms of service, you’ll see more of this. I don’t mind them doing the arbitrage play as long is it pulls up the ad prices from the demand side. I’m not letting them place through me, though.