Is there anything better for your business than Pay-for-Performance leads and sales?
Pay-for-Performance means you’re getting the highest return on your marketing and advertising dollars.
We’ve helped one business grow from nothing to over 100 million dollars in three years through online marketing, direct mail and national TV advertising.
How far can your business expand?
We are an exceptional and uncommon marketing agency that develops customized sales funnels for businesses and then fills those funnels with prospects via marketing and advertising campaigns to drive you more leads and sales.
If you’re a cost-conscious, savvy business leader looking to take your revenue to the next level, then you should visit SkyworksMarketing.com
We offer brief advertising trials for qualifying businesses to assess the potential for a future win-win partnership.
You get real-time prospects and/or sales that are exclusively for your business and no one else.
You get a partner that is simultaneously testing, optimizing and managing all the advertising to keep your funnel full, while constantly seeking new ways to get more prospects into the funnel.
You get an award-winning video production team to get your message out to the world, whether online, on TV, or both.
You get advertising on Google, Facebook, Amazon, YouTube, LinkedIn and other platforms, depending upon what’s best for your products or services.
Furthermore, as the partnership matures and proves itself, you’ll benefit from our offline marketing as well, such as direct mail, print ads, radio and TV. You’ll even receive ongoing content development, including graphics, articles, videos, TV commercials, along with auto email sequences and website development.
You’ll also benefit from artificial intelligence and data science expertise to help tune your product or service offerings, and to inform new upsells, cross-sells and future product suggestions. In other words, we use artificial intelligence to help your business grow much faster and more effectively.
And of course starting from Day 1, you’ll get continuous development of new ads to drive new leads and new sales.
Need a Pay-for-Performance (P4P) advertising partner to accelerate your business growth?
We’re looking for win-win partnerships.
Synopsis: Pay-for-Performance (P4P) Partnership Process
What We Don’t Do
What We Do
Data Science & AI
P4P Trial Selection Process
2-Week P4P Trial
90-Day P4P Trial
The basic appeal of a Pay-for-Performance partnership is that instead of paying for marketing and advertising services that may or may not generate enough leads and sales to justify the cost, you pay for marketing and advertising performance: usually leads or sales.
As ideal as a Pay-for-Performance business partnership can be — when you can find such an arrangement that provides significant leads and sales — there are two operative words: “business” and “partnership.”
In other words, the risk/reward needs to make business sense for each partner.
What We Don’t Do
Because there are a number of different Pay-for-Performance opportunities in the world, one way to describe what we do at Skyworks Marketing is by first highlighting what we are not:
We’re not providing names and addresses from an existing database so that you can cold call them.
We’re not an affiliate agency.
We’re not advertising a generic service and sending the leads to multiple lead buyers.
Those services are fine for a number of businesses. But it’s not what we offer.
What We Do
We create custom sales funnels and provide the ongoing advertising to generate real-time leads and/or sales exclusively for your business and no one else (and later, we may use content marketing).
Stated in more detail, we provide full-service, customized sales funnels, developed specifically for your business, while simultaneously testing, optimizing and managing all the advertising to keep the funnel full, and at the same time seeking new ways to get more prospects into the funnel.
This means not only taking advantage of online advertising media, such as:
We also use offline media as well, such as:
Furthermore, we generate ongoing content, including:
TV commercials (when pertinent)
Creating/managing auto email sequences
All this to drive and nurture leads and sales for your business.
Data Science and Artificial Intelligence
Through data science and artificial intelligence, we provide metrics and expertise to help tune your product or service to generate even more impactful results.
With this data, in time we provide insights into potential upsells, cross-sells and new products that can help your business grow faster and more effectively.
Primarily, we use data science and artificial intelligence to lower ad costs and increase ad performance.
The longer we run the ads through the sales funnel, the more data we generate, and the more effective the advertising becomes.
This type of marketing and advertising requires labor, experience and expertise.
Whether we establish a partial or 100% pay-for-performance partnership, we want to be confident that the business we are promoting has a high closing ratio to turn leads into sales and provides good products and services.
A 2-week trial is our primary test to determine a good fit for our potential Pay-for-Performance partners.
However, this trial isn’t automated, nor is it a system where the labor is executed on your end. There is real human effort executed on our end to launch and manage a trial.
Hence, here’s the catch: We can’t offer a P4P partnership, or even a trial, to everyone who desires such. We need to determine the potential for a longer-term opportunity first. That means you’ll need to fill out our (free) P4P application to provide some preliminary information. Your part is easy.
On our end, your application will be manually reviewed and often research will be conducted to assess the opportunity.
P4P Trial Selection Process and Qualifications
There are two general categories of information we assess when evaluating whether we will offer a trial to a potential partner.
THE BUSINESS ITSELF (including competition)
THE KEY TEAM BEHIND IT
Our ideal partner represents a highly experienced team (or leader), is well-capitalized and has a truly unique and outstanding business.
But that’s not so common: especially the “unique” part.
As a result, we also seek partners that may not meet our ideal requirements but show enough promise that we’ll invest resources into a 2-week trial.
Your product/service needs enough margin relative to advertising costs
There needs to be an opportunity for adequate sales volume
You need a higher-than-average quality product or service
You need a good reputation
You need a good sales team
You need effective operations
Ideally, you have existing upsell and cross-sell products/services
On the other hand, if you have a very strong model and margin (along with a high-quality product or service), that combination, by itself, can sometimes be the basis for a win-win partnership.
It all boils down to mutual opportunity.
A business that represents a strong opportunity for a win-win partnership will qualify for a 2-week P4P trial. A business with low opportunity for a win-win partnership will not qualify.
Following are some examples.
An average business model or idea without experienced leadership will probably not qualify for a trial.
However, a truly outstanding and unique business without an experienced team ‘may’ qualify.
An inexperienced leader with little money and a brand-new business will not qualify (unless the idea or model is truly exceptional).
A mature and experienced team with a good (average) business model may qualify.
A mature and experienced team with a low-opportunity business model will not qualify.
A great team and a great business opportunity will qualify.
And to make things interesting, we may sometimes provide a trial for an opportunity that doesn’t look as promising, because we would like to see the trial metrics. So, anything can happen. The only way to find out for sure is if you submit a (free) application.
Again, it primarily boils down to mutual opportunity. The 2-week trial is where we gain some fundamental data.
2-Week P4P Trial
As part of the above qualifications and selection process, we’ll ask what you want to pay for a P4P lead or sale.
That number will be re-evaluated based upon real-world performance data after the 2-week trial.
Although we try to filter out trials that we don’t believe will show promise after a 2-week trial, the reality is such does occur.
So, after a 2-week trial, the performance data will inform three options:
No go. We cut our losses and part ways as friends.
The numbers show that the opportunity is so good that we can provide a 100% P4P Partnership, which means you pay only for completed leads or sales.
The numbers are promising enough to continue a Partial P4P Partnership. A partial P4P partnership means you will pay at least media costs in addition to performance incentives.
By the way, it’s worth noting that a trial that yields unfavorable results is not an indication of the success potential of your business. This trial merely provides preliminary data regarding the speed of a longer-term P4P opportunity.
90-Day P4P Trial
A successful 2-Week P4P Trial means we can move on to a 90-Day P4P Trial.
A 90-Day P4P Trial provides more meaningful sales metrics. A 2-week trial can produce the minimum data necessary to evaluate the potential for a P4P partnership. But a 90-day trial gives us firmer ground to build a more robust sales funnel since we only implement a fraction of the sales funnel and advertising resources in the shorter trial.
Message optimization, landing page optimization, conversion optimization and other factors can begin to impact the metrics in the 90-day trial, which all serve to increase performance and lower cost.
P4P remuneration will be re-evaluated based upon the real-world performance data after the 90-day trial.
We’re seeking win-win partnerships. As such, the P4P remuneration needs to work well for both sides of the partnership.
The most basic metrics we evaluate include how many sales (and profit) are generated in a given time period. You may be pleased with the leads and sales, but what if the volume does not support our continued effort?
Once again, we’re looking for win-win P4P partnerships.
If this sounds like something you’d like to explore, the next step is to request and instantly receive your free P4P Application.
We can’t guarantee that you’ll qualify, but no matter what, you will receive a professional, timely and courteous response.
How much would your business benefit from a continuous stream of pay-for-performance clients?
Let’s face it: Advertising is a pain.
Sometimes things you try don’t work at all.
And that’s the good news.
The bad news is that if you don’t generate enough sales, you’re on a trajectory to failure.
OK, enough of the obvious. What’s the solution?
At Skyworks Marketing we use data science, artificial intelligence and lots of real-world experience to increase ad performance and lower ad costs.
However, what benefits you the most is our pay-for-performance leads and sales.
We may use Google, Facebook, television and other ad platforms to increase revenue for certain clients, but only use one ad platform for other clients. It boils down to what works best for each business.
If there’s one thing we do emphasize – it’s video. Whether online, on TV, or both, video increases viewer engagement.
So, how much more successful would your business be with a pay-for-performance advertising partner?
It means substantially more value for your business along with our vested interest in continually driving you new leads and sales.
I receive regular inquiries from businesses seeking to partner with Skyworks Marketing on a 100% Pay-for-Performance (P4P) basis.
However, one aspect, in particular, can work against a business seeking such a partnership: Having a low priced product or service. You see, even with a high margin, particularly in a competitive market, such as weight loss, health, finance and insurance (as well as many others), there is not enough mutual opportunity.
Now, don’t get me wrong, competitive markets, per se, are not unattractive. In fact, the reason they’re competitive is because a lot of money is being made in that space. It simply takes more time and/or resources to compete in such an environment.
For example, a product that costs less than $50.00, even if it has a 90% profit margin, is not going to make enough profit, after the media buying, to make an attractive partnership from our perspective.
Of course, this could be profitable in the long-term with selective advertising and some very diligent (and lucky) social media strategies. But in my experience, to rise above the noise in a competitive market in a reasonable amount of time, ongoing media buying is what’s going to make it happen more predictably. (And even so — it’s still not guaranteed!)
A low-cost product or service means that advertising will eat up most or all of the profit, especially in the early phases. In fact, it will likely not be profitable until/unless a critical mass is reached whereby enough sales are being made on a big enough scale, which drives the media costs down and/or consumers are referring others en mass.
One effective solution is to offer more expensive services that would also be purchased by the buyers of the low-cost service afterwards. That’s a tried and true model to sustain the business via advertising. In such a case, it becomes important to calculate the value of a new customer or client to determine the workability. For example, if 30% of your buyers purchase an additional product or service within a certain amount of time (say 90 days), then that additional 30% could potentially become the actual profit stream.
In fact, it’s not unusual for some companies (particularly in the infomercial world) to lose money on their upfront sales (the sales that directly result from the infomercial). They simply make their profit on the upsells and follow-up sales.
Regardless, there’s still a testing evolution involved to establish proof of concept. And whose going to do the testing?
If you present the idea to a Venture Capital firm, or a Pay-For-Performance partner, like our company, the merits of your idea will be weighed against a number of variables, which boil down to risk vs. reward. The better a case can be made that your business is a low-risk, high-reward opportunity, the more likely you would be funded by a Venture Capitalist or that you might be deemed a desirable Pay-for-Performance partner, in which we would invest resources.
The reality is that in many cases, the great idea that you are proposing to gain support and resources for your business, is probably not as low-risk, high-reward, or even as unique, as you might envision.
Even if you are interested in a “partial” Pay-for-Performance partnership, whereby you are putting up media money and paying a reduced fee for marketing services, it may still not be worth investing our resources to prove the validity of your entrepreneurial vision.
Please do not interpret these words as a suggestion that such a product or service cannot be driven to a big success in any other way than buying media. There are definitely other ways to achieve success. It will simply take longer.
You produce a high quality product/service. Your customers/clients love you. You just need more of them.
You’re seeking a pay-for-performance (P4P) marketing service to provide as many new leads, or actual customers and clients, as you can get.
Maybe your business is doing great and you want to get to the next
level. Or, maybe your marketing worked in the past, but the evolving
landscape became too complex and expensive.
I’ve got good news and bad news.
GOOD NEWS / BAD NEWS
First the bad news: The marketing and advertising
landscape has gotten more complex. Google and Facebook, in particular,
keep getting more expensive. On top of that, strategies that worked not
too long ago are less effective today. Nowadays, profitable marketing
strategies seem as fickle as diet fads or women’s fashions.
Now the good news: Businesses continue to sell
stuff. Every day. Sure, some businesses expand while others fall to the
wayside. But behind each business success is a marketing success. Pro
marketers are always seeking ways to provide more sales for a lower
cost. Currently, two areas are delivering some of the best marketing
return on investment (ROI).
TWO HIGH-PERFORMANCE MARKETING EPICENTERS
You’ve probably heard of both.
Cross-Platform Retargeting: Unless you’re new to
online marketing, you know that retargeting and remarketing represent a
number of different ways to use advertising to build relationships
across different online platforms. For example, show someone a video, a
post, or an ad on Facebook and then show those same individuals uniquely
targeted ads on Facebook or elsewhere on the internet. And you only pay
when they click. It’s a powerful way to place your brand in front of
the right prospects as they travel around the internet. And for those
that don’t click, you get to show your brand for no cost.
Artificial Intelligence: Of course AI is not new.
It’s been around for decades, but it’s getting smarter. Autonomous cars
are in the news more than ever, for good and bad. Whether we like it or
not, much of our lives are — or will be — touched by AI. In the world
of marketing and advertising, AI already facilitates massive data
analysis, more effective ad creation, faster ad testing and more
efficient ad buying. Each passing day puts non-AI advertisers at a
BETTER AD PERFORMANCE
The question isn’t whether you should be using these (and other)
technologies to improve the ROI of your marketing and advertising
efforts. For many businesses that haven’t begun yet, the question is
where to start?
And after that there are many more questions on how to continue to move forward.
Furthermore, striving towards higher production and lower costs by
introducing any new technology often lowers efficiency and increases
cost – albeit temporarily – until the new technology and processes are
effectively integrated into your operations.
The same for new spheres of marketing strategy and technology. You
will likely make mistakes and lose ROI until you adjust to the new way
of doing things.
But what if you don’t have the time to keep learning new marketing methods?
Perhaps that’s one reason you’re researching P4P marketing and advertising options.
PAY FOR PERFORMANCE (P4P)
P4P isn’t new either. Commissioned sales people and organizations
have long been an integral part of the marketing and sales landscape.
Commission-only sales professionals receive no compensation unless they
generate sales. Sales pros who are compensated by a salary plus
commission often have lower commissions than their commission-only
counterparts, but that base pay does offer more income predictability
when sales are sluggish.
There are advantages and disadvantages to each model.
For example, a sales pro who receives a salary plus commission
represents a longer-term commitment by both the company to increase
revenue into the future.
A commission-only sales rep may at any time favor other brands, who
offer more compensation or perks, resulting in a loss of revenue for the
There are also a variety of hybrid commission models that attempt to
better align sales incentives and goals between the brand and
P4P as used in internet marketing, represents a pricing model whereby
a marketer or advertising agency receives a payment or bonus from a
merchant for ‘performance’. This may be in the form of each new lead or
new customer obtained for the merchant through the agency’s online
marketing efforts or some other ‘performance’ metric the agency and
client agree upon before beginning.
What about affiliates?
P4P is a broad term that embraces many types of performance-based marketing and advertising models.
Affiliate marketing is one type of performance-based model in which a
business compensates one or more affiliates for each visitor or
customer created by the affiliate’s own marketing efforts.
The basic idea here is that merchants only pay affiliates for efforts
that result in a desired action such as a lead, a sale, a free trial
user, or a newsletter subscriber. This removes the risk to the merchant
because they know in advance that they will not have to pay for bad
referrals, and it encourages the affiliate to send good referrals.
Affiliates often have a specific business process and/or model that works for specific types of businesses.
If there are existing affiliates that support your business model, it’s something you should consider.
As an example, Amazon maintains an affiliate marketing program which they launched in 1996. Although they were not the first, its program became widely known and contributed to the retailer’s success. Amazon affiliates (called “associates”) place ads on their own, personal websites for products which are purchased via Amazon.com. The affiliates get paid a commission when purchases are made from Amazon. Like many things in life, affiliate marketing has advantages and challenges.
AFFILIATE MARKETING CHALLENGES
For many businesses, affiliate marketing programs are a productive part of their marketing mix.
However, affiliate programs also attract rogue elements, who use spamming, trademark infringement, false advertising, cookie stuffing, and other unethical methods. Hence, some merchants avoid affiliate programs due to associated risks, even if said risks are actually less than they used to be. As a result, some merchants implement tight controls on how affiliates may advertise and use monitoring methods to help diminish the risks of rogue elements, which limits the support of affiliates.
Other brands use outsourced affiliate program management companies to deal with the details.
For the purposes of this message, it’s important to know that Skyworks Marketing is not an affiliate.
Nor are we a program management company or an affiliate marketing
agency. We only mention the preceding based upon years of explaining the
difference to those newer to P4P marketing.
In brief, Skyworks Marketing is a Pay-per-Performance advertising agency. We create, execute and optimize custom marketing and advertising strategies with a heavy emphasis on online advertising, video and TV. We may also use affiliate marketing networks as one part of our own efforts.
If your business is a good fit for affiliates, that may be a productive path for you. Just be aware that such is not what we do.
DIFFERENCE BETWEEN AFFILIATES AND PERFORMANCE-BASED MARKETING AND ADVERTISING AGENCY
Here in the 21st century, performance based marketing and advertising is an umbrella term which includes Affiliates, Influencer Marketing, Email Marketing, Search Engine Optimization, PPC, Native Advertising, Sponsored Content, Social Media Marketing, Incentive Programs, and any other form of marketing where the marketing partner exchanges sales (or completed desired actions) for commission payouts. A pay-for-performance advertising agency is comparable to the way traditional ad agencies have operated in the past (and now). The TV series MAD MEN serves as an example.
However, the difference between modern ad agencies and those of the 60’s, when the bulk of MAD MEN is represented, are substantial. For example, back then “focus groups” were often used to measure consumer interest. Nowadays, real-world ad “testing” is how to find out what will move people to spend their money.
Among many other things, a modern agency develops and tests offers for you, which might be similar or quite different from your current efforts.
An agency partner is working with your business to optimize your sales.
The top clients in MAD MEN paid millions of dollars a year for marketing and advertising services. Of course most small to medium size businesses have budgets that are only a fraction of that. Yet the point is still valid: an ad agency is optimizing ways to sell your products/services to maximize sales as much as possible.
An affiliate model that works best for you and is profitable for an affiliate is a true win-win scenario. But most often their compensation is tied towards doing things their way, which typically represents a fraction of the sales opportunities that can be leveraged to expand your business. For example, video and TV production, direct mail, and many types of online advertising would not be used for your brand via affiliates, but such is routine through a marketing and ad agency.
A significant difference between performance-based ad agencies and non-performance based agencies is the incentive to generate marketing and advertising campaigns that work. When you pay an ad agency for services, you may be gaining their very best and most sincere efforts to generate sales for your business. Or, maybe not, as both sides were represented in MAD MEN.
When an ad agency is operating with a performance incentive, the calculus is mutually beneficial. A performance based ad agency has “skin in the game” and is continuously motivated by the principle that better performance for your business is better performance for their business.
PAY PER CLICK
Another one of the most widely known P4P marketing opportunities is via any of the myriad Pay-Per-Click (PPC) platforms. Google and Facebook are the most well known players in this space. In brief, you only pay when someone clicks one of your ads. It’s a classic P4P model.
Of course if your ad, offer and landing page are not well optimized, you can still lose money. As many do. Hence, that’s why agencies, such as Skyworks Marketing, and others, offer expert PPC Management services. Having said that, as a word of caution, some markets are so competitive that even paying a professional service to manage your ads may still result in unprofitable PPC expenditures. Which is why we prefer to monitor and optimize the entire sales process, not just the advertising, so that we can provide the best opportunity for profitable results.
Having said that, there are some business cases whereby running PPC ads at negative ROI is still valuable. For example, when enough upsell opportunities are proven to establish a higher lifetime value per average customer than the initial purchase itself.
Here at Skyworks, we have enough experience that we may advise that you will not likely achieve a profitable ROI before we even start testing. In other cases, we can see that there is a reasonable expectation that we can generate PPC leads/sales at a positive ROI.
BUY YOUR CONVERSION
What if you could buy the key conversions you require, such as qualified leads, app installations, new subscribers, confirmed orders etc., at a pre-agreed price? This is also known as CPA, which is cost-per-action or cost-per-acquisition.
In this case you’re paying for an outcome that is more definitive and/or further along the sales funnel than just a click. The cost for CPA is higher than with PPC and may have some conditional requirements. When it is available for your own products or services it can mitigate the realities of rising advertising cost since the necessity to continue to optimize the advertising to offset the rising cost is borne by the partner doing the advertising on behalf of the company providing the product or service being sold.
Stated another way, buying a pre-agreed CPA provides more prediction in your marketing and sales process, as well as lowering the cost of your marketing.
Having said that, if you have the resources to hire and maintain the professional services required to make modern marketing and advertising more productive while reducing costs, you likely wouldn’t be contemplating external P4P partners to begin with.
WHO WE ARE
Skyworks Marketing is first and foremost a marketing and advertising agency. We use online and on-TV marketing, advertising, publicity and lots of video to generate sales and leads for clients. It’s a true partnership whereby we create custom advertising programs for your products or services.
A notable success was helping to grow a business from nothing to over $100 million in 3 years via online advertising, direct mail and national TV. Pro tip: It involved a tremendous amount of split testing of messages and ads.
Located on the beach, just north of LA, in Ventura, CA, Skyworks Marketing is also the primary sponsor and management/production entity behind the weekly CA cable TV series, Our Ventura TV.
A core component of who we are is using artificial intelligence and data science to generate more sales with a smaller budget.
WHAT WE DO
Skyworks Marketing helps businesses generate more leads and sales via marketing, video and TV with an emphasis on artificial intelligence and data science.
Our fundamental strategy includes ongoing ad testing and data analysis, supported by artificial intelligence.
Most of our partnerships also benefit from our video production, regardless of where they are located in the U.S.A.
We provide these services in the same way other marketing and ad agencies do: we charge money.
Additionally, for certain clients we partner on a full or partial P4P basis. In that regard, we’re a bit like Goldilocks seeking partnerships that are just right. It usually includes partners who are seeking full-agency support with an entity that has more skin in the game and is more accountable.
HOW WE GET PAID
Like any business, we provide value in exchange for money.
In some cases, we provide value on a performance basis.
Those P4P cases are designed to represent a truly win-win relationship where our qualified clients receive tremendous value, on a long-term basis, for marketing and advertising services that evolve over time as the markets themselves and real-world data informs those changes.
It’s a never-ending process of testing and optimization.
We get paid two ways:
Clients pay for services, such as ad creation/testing, offer consulting, ad management, script writing, video production, etc.
Qualified P4Pclients pay us on a full or partial performance basis depending upon the relationship.
Skyworks is a digital advertising agency that specializes in generating leads and sales, not only through the Internet, but primarily through video and television. We have three different ways to help expand your business and two of them offer the opportunity for a pay-for-performance partnership. (Try saying that three times fast!)
A) The first option is called SKYWORKS DIRECT and it’s what you might expect of any ad agency or TV production facility: We create and produce videos, TV spots, interviews, documentaries, or anything your business needs. Additionally, we’ll not only produce your TV commercial, but we’ll get it broadcast for you, as well. For this option, it’s a simple fee-for-service arrangement.
B) Our second opportunity is called SKYWORKS P4P TV (which means pay for performance television). This could be more informally described as “Groupon for TV.” In this case – like Groupon – qualified businesses pay nothing. In fact, we pay you and provide you with the names of your new customers, usually before they walk in the door. Of course the big advantage of our SKYWORKS P4P TV service, over Groupon, is that we advertise your products or service on local television, not just online.
And like Groupon, we collect the money. We keep part of what the customer pays and give you the remainder.
C) Our third opportunity is a customized mix of the first two, and it’s called SKYWORKS CUSTOM P4P. We are seeking to partner with businesses that have an excellent product or service and which can benefit from additional online and television marketing, including creating and broadcasting infomercials. More businesses may qualify for this third option, than our second one, and this offers additional features and flexibility. In its simplicity, your business will pay a discounted rate in exchange for sharing a percentage of the profits of new sales that we bring to your business. Visit our Pay-for-Performance section for more information.
MORE IMPORTANTLY, WHAT DOES IT MEAN FOR YOUR BUSINESS?
In brief, it means more customers without paying cash for the advertising.
“Groupon for TV” is an expression that conveys the simplicity of a pay-for-performance advertising model offered by Skyworks Marketing, which is a digital advertising agency located by the ocean in Ventura, CA.
Although there are a number of advantages to pay-for-performance TV, compared to Groupon, here are the primary points of interest for a forward-thinking business seeking to gain more customers:
1) The merchant pays no money.
2) Skyworks advertises the business on local TV (and online).
3) Just like Groupon, Skyworks collects the money, keeps its portion and pays the remainder to the merchant, along with the new customer names.
4) The merchant provides outstanding service so that the customers continue to return and make purchases at regular prices.
The fundamental point is that the merchant pays no money up front, and in most cases, receives money before the customer walks in the door.
The strength of this pay-for-performance advertising model is based upon the merchant offer, not on the creative wizardry of the commercial itself. Although sophisticated TV commercial production services are also available, the TV advertisements for this model are very simple, featuring the main points of the merchant offer accompanied by a picture of the product/service.
In order for the local TV offer to generate enough interest so that it is profitable to run as a TV commercial, without the merchant paying any money, the offer has to be very compelling.
Stated more directly, the TV advertisement needs to offer at least a 50% discount (like Groupon) so that TV viewers will want to make the purchase immediately.
For more details about our pay-for-performance opportunities, visit our P4P section.