We will be rolling out some changes to PayPerPost tonight at 10pm EST. The changes are primarily geared toward simplifying the advertiser experience, though some changes will affect bloggers as well. The most significant modification to PPP has to do with the financial model.
We have known for some time that the cost structure in PPP was not economically viable; our margins simply have not covered our operation costs. Between marketing, sales, commissions, customer service, development, bandwidth, hardware and legal, it isn’t cheap to service the PPP community. For each post a blogger makes in PPP we currently lose money, and that can only work for so long.
When SocialSpark launched we adjusted its margins to create a model that would be profitable for the company. The model works and provides a clear path for the future. Meanwhile, PPP has been canceling out what we’ve gained in contribution from SocialSpark. Today we are adjusting the margins in PPP to match that of SocialSpark. Both systems will now have a 50/50 split between IZEA and the blogger, recognizing the value each of us brings to the table.
Our goal is to serve our community of advertisers and bloggers well into the future. In order to do that we have got to have a sustainable business model that works. The changes we are making today ensure that we will be here for you tomorrow.
Stay tuned for another post with more details about the release.
