The challenges of implementing a commission sharing model with your advertisers
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Amad Almsaodi from Aqarmap discussed experiments with new business models to generate revenue growth. The first experiment targeted brokers with a commission from commission model but had potential issues. The second experiment worked with developers as a virtual broker. Additional experiments included discount models for laggard developers and exclusive marketing. Conclusions indicated focusing on developers, tracking complexity, avoiding cannibalization and working with laggard developers presented doable options for new models.
The challenges of implementing a commission sharing model with your advertisers
- 1. Property Portal Watch Conference Singapore, May 2014 Amad Almsaodi
- 2. About Aqarmap • Angel funded startup, launched in 2011 • Egypt and Saudi Arabia: 1.5 Million visits / month • Revenue Growth: 500% in 2013 and 450% in Q1 2014
- 3. Why Commissions • Results driven • Aligned with the industry • A larger pool of revenue • Maximizes returns on the long run
- 4. First Experiment • Target Segment: Brokers • Business Model: Commission from the Commission Potential Worked Complexity Status ✗ ✓ ✗ ✗
- 5. Second Experiment • Target Segment: Developers • Business Model: Virtual Broker Potential Worked Complexity Status ✓ ✓ ✗ ✗
- 6. Third Experiment • Target Segment: Laggard Developers • Model: Discount Potential Worked Complexity Status ✓ ? ✗ ?
- 7. Fourth Experiment • Target Segment: All segments in Saudi • Model: Honorable Word Potential Worked Complexity Status ✓ ? ✓ ?
- 8. Fifth Experiment • Target Segment: Laggard Developers • Model: Exclusive Marketing Potential Worked Complexity Status ✓ ? ✓ ?
- 9. Conclusions • Developers • Tracking complexity • Cannibalization • New Portals • Laggards • Doable