SortPrice and the Beauty of Flat Rate Pricing
For a long time now I have heard good reviews, and specifically from merchants, not some random writer (eh-hem) about one engine not as publicized as some others. The reviews are not due to some new video feature or robust search mechanism, but instead something special with the billing structure.
SortPrice is one of the few, if not the only, shopping comparison engine that offers a flat rate structure. That is, a merchant can pay a flat monthly rate and get unlimited referral clicks during that time. This is great in terms of efficiency because like TheFind, GoogleBase, or MSN Live, a merchant can list all of their products without complicated business rules. Little attention needs to be focused on product specific profit margins. Instead, the more clicks the better!.
At first this seemed just a curiosity, but as more merchants discover, the cummulative ROAS can be quit nice indeed.
One Response to “SortPrice and the Beauty of Flat Rate Pricing”
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September 11th, 2007 at 1:07 pm
You should mention the bad with the good. A flat pricing structure gives SortPrice an incentive to add as many merchants as possible; and it gives merchants an incentive to add as many products as possible, so the site will be flooded with merchants and products. Also, since SortPrice is not making money per click, they have little incentive to bring more traffic to their site.