SOCIAL SPARK IS LIVE!!!
The first thing I want to say is how proud I am to be working for a company that is on the cutting edge of social media marketing. We have come a long way even in the short time that I have been here. And now the questions about our new product are starting to pour in.
The new Dynamic Pricing has really caused a lot of questions. How does it work? Why does it work that way? Is this better for the advertisers or the bloggers? Well, I will do my best to address all of these issues here. I do have a finance degree so, as Crystal says, that should come in handy!
How Does It Work?
It’s simple supply and demand really. If there is more demand than there is supply, the price will change until there is equilibrium. If an Opp seems undesirable because it is offered at a lower price, no Postie will take the Opp. After a certain period of time, the price offered for the Opp will increase until someone takes the Opp. If a bunch of people rush to take the Opp (demand), then the price offered will drop back down. Advertisers choose the range they want to pay for each Opportunity.
Why Does It Work This Way?
We often had Opps that never filled in PayPerPost because they were offering a lower price for harder requirements (high word count, embedded pics, multiple links, etc). Advertisers simply did not know what to offer for certain kinds of Opps. We have added the dynamic pricing feature so that the advertisers will be able to offer a price range for every Opp. Therefore, the dynamic pricing system takes the guesswork out of pricing an Opp. Now, you simply offer a range.
Is This Better for the Advertisers or the Bloggers?
The answer to this question is …. BOTH. IT IS MORE BENEFICIAL TO THE ADVERTISERS AND THE BLOGGERS!!! Advertisers no longer have to worry about overpricing or underpricing an Opp. If it is over-priced, the price will drop to decrease demand. And if it is under-priced, the price will rise to increase demand. Bloggers now can decide if that 300 word Opp with four links and a pic is worth $5.50 to them. Or if it is worth waiting to see if the price will go up. Either way, the Blogger gets paid whatever they reserve the Opp for (as described in <a href=”http://community.izea.com/blog/2008/04/dynamic-pricing.html#comments”>Carri’s Post</a>)
Just Remember: SocialSpark relies on Supply and Demand. If you have any questions about how this works, please send in a ticket by clicking on the ‘Help’ tab at the top right of your SocialSpark account.
