An AM at a trusted program I work with reached out with this question, I suggested to him we take it to GPWA for feedback. What is your opinion?
I am in the process of changing our software, either using a 3rd party source or rebuilding our own. I’m heavily leaning towards using a weighted time decay model vs either first or last click. I wanted to get your thoughts on it as well before we get to far into the process.
The two issues with that are:
I’m not sure which the affiliates prefer in the end. I know most are currently last click. What are your thoughts on time decay weighted? (I’ll put my proposal below)
Almost none of the 3rd party software I’ve looked at support weighted models of any type.
Which leads to us building it.
Assuming we build it, I do want to make every click as transparent as possible. So for each click the affiliate viewing it would see any Brand they have access to with the name, other affiliate brands would show as a generic term such as “Affiliate #1” (privacy etc..)
Accounts would also show percent ownership for each affiliate etc.
System would be capable of CPA, Rev Share or Hybrid (partial CPA partial net revenue).
Possible proposed system:
Each link click from any source is worth X points.
Points expire at X per period.
When a user signs up multiple affiliates could be holding “points”. Each affiliate owns a portion of that account.
So… lets say
Each link click is worth 10 points.
They expire at 1 point per week.
I click a link for Affiliate A
A week later I click a link for Affiliate B
A week later I signup.
Affiliate A has 8 points (10 – 2 points per week)
Affilaite B has 9 points.
Total points is 17
Affiliate A is credited 52% of the account (9/17)
Affilaite B is credit 48% of the account (8/17)
Affiliate A is a netrevenue share model at 30% net revenue.
For this customer they will get a netrevenue share of 30% * 52% or 15.6%
Affiliate B is a CPA model with $75 CPA.
For this account they will receive a $36 CPA ($75 * 48%)