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  1. #1
    SitePoint Wizard
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    looksilly - Very Silly Indeed

    I guess this is a fairly blatant admission that they stuffed up with their pay per click model in the US.

    Fees don't click with LookSmart
    THE AUSTRALIAN
    Simon Hayes
    JUNE 18, 2002
    LOOKSMART has ruled out a pay-per-click revenue model in its Australian small business listings service, following controversy over the system's implementation in the United States.
    *ADVERTISEMENT
    US website owners pay 15USc each time a user clicks through from a LookSmart listing to their website. The system has replaced the annual fee model that is still used in Australia.

    But the new US system has raised the ire of small website owners, angry because they have already paid what they understood was a one-off fee to guarantee listing.

    One US firm that paid the fee is suing LookSmart for breach of contract, arguing that having paid the earlier one-off fee, it should not be required to pay additional charges.

    LookSmart Australia chief executive Damian Smith said the company had no intention of rolling out the pay-per-click model to Australian small business customers, except possibly as an additional charge for a guaranteed placement.

    The company is anxious to keep the model simple as it introduces a new sales channel through Pacific Access' Yellow Pages sales force.

    From July, the Yellow Pages staff will market the LookSmart listings along with telephone directory entries.

    LookSmart now claims to have 70 per cent of Australia's search eyeballs, having just signed as NineMSN's search provider.

    "In Australia a simple annual fee was the best way to integrate the product with Pacific Access," Mr Smith said. "Yellow Pages will not sell on a cost-per-click basis."

    Australian small businesses now pay $400 a year for a listing, but are not guaranteed any particular placement.

    However, the pay-per-click model is used by large Australian customers.

    Industry watchers said LookSmart had stumbled badly in the introduction of pay-per-click, infuriating loyal clients who believed they had already paid for a permanent listing.

    Search Engine Watch editor Danny Sullivan said his readers were happy to pay for listing, but annoyed by the way the system was introduced,

    "They are not upset at having to pay, because they recognise it delivers traffic," he said. "It's because they did pay, and (LookSmart) changed the rules."

    Mr Sullivan, whose UK-based website is widely seen as the most expert commentary on the web search business, said LookSmart should consider exempting existing listings from the new fees.

    "This could be a goldmine, but whether they have to force people into the program, I don't know," he said.

    LookSmart's Mr Smith said revenue from pay-per-click would overtake straight directory inclusion revenue by the second quarter. "In any product roll-out there will be hiccups," he said. "We are working with customers that have an issue, but pay-per-click is more accepted in the US."

  2. #2
    Xbox why have you forsaken me? moospot's Avatar
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    I guess that's why they now have a pending class action lawsuit

  3. #3
    Level 8 Chinese guy Archbob's Avatar
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    The PPC is a bad idea, most of us would go against it.


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