Germán Piñeiro gives us his thoughts in his post:
“Interesting commentaries and I think we can debate a lot on this subject.
Rodrigo, I won’t monopolize the conversation here, so I’ll go to your Blog later on.
As a result of the last answers, I would like to clarify what I previously called volume or massive contact and the Quality contact.
When you focus an objective to obtain 10.000 contacts through an affiliated net (I am now talking about the volume of contacts achieved in a short time, e-mail, a name and a little more) the net support “offers” in some way, incentives to their users to generate these contacts and the affiliated net will pay for the reached volume of contacts.
In the case of the quality contacts, (now I am talking about the really qualified contacts, where the advertiser not only receives a name and an e-mail, but may also receive an address, telephone number, and in some cases, bank details) it is here that the support gets involved in the biggest possible way, as the payment for contact is higher, but so is the complication of generating them, and this goes without saying that they must sharpen up a lot more.
With a product that has a high economic outlay (approximately 50.000 Euros), to reach an objective of 10 sales, in the first case we need 10.000 contacts (1 sale for every thousand) and the cost of the campaign is 20.000 Euros, we can say that the direct cost attributed to each sale would be 2000 Euros.
In the second case, (Quality contacts) for the same product to reach an objective of 10 sales, we would only need 600 contacts (1 sale for each 60), and in this case the approximate cost of the campaign would be 18.000 Euros, we can say that the direct cost attributed to each sale would be 1800 Euros, (which is 200 Euros less the sales price).
Now, after these two methods , I can tell you that what functions best is to offer the support a % of the sales, and so the cost of each sale is fixed and the campaign is reduced to 1.500 Euros each sale (500 Euros less than the option of going for the volume of contacts). In this case the involvement of the support is higher, and I can say that the quality of the contacts received will be much higher, and what happens is that we greatly reduce the work of filtration or discrimination of the contacts of our Call Centre or Commercial team.
Of course, the contacts, the same as the clients, must be followed up, classified and have a life cycle that we must centre in our Marketing and Commercial plans.
I hope that with this, you understand my point of view”.
I would now like to open a debate about the figures presented by Germán.
Do you agree? Would you like to make other examples?
