Although there are numerous ways to monetize online content, the most popular methods are a flat-fee or a commission. And while there are merits to both, we’ll take a closer look at the pros and cons of each option.
One of the most common monetization models are sponsored posts, where the content publisher compensates with a flat fee for posting, often on behalf of a brand. The website ConnectPal operates mainly using a flat fee model, with users paying for access to someone else’s social media feed, such as video or audio. ConnectPal’s host users include radio host Neal Boortz, pro tennis player Vince Spadea and best-selling author Aaron Klein.
ConnectPal meets the growing need for a platform that allows creators the opportunity to monetize their exclusive content. It’s one of the few sites specifically intended for content monetization, enabling creators to earn a living off their work while continuing to create new content.
The flat fee model often relies on “influencers,” celebrities or media personalities whose name carries some weight in the advertising world. For instance, influencers can tweet out an endorsement of a product to their millions of followers, earning a pretty penny in the process.
For the advertiser, the only thing that matters is achieving their goals with an investment in a content creator. With a performance marketing model or commission model, advertisers only pay for the direct value they receive in return. With that said, it’s more difficult for a brand to monitor value from a flat-fee model because typically they don’t include links directing to the brand’s product page.
Although the industry remains in a phase where flat fees are still the most common compensation practice, advertisers are increasingly turning to affiliate models, a form of commission where publishers are compensated only when the brand’s desired action is achieved.
So which model is superior? Experts recommend working with brands in a partnership and arrive at a pricing model that will yield the highest degree of success possible for both sides.
In other words, it’s not necessary to choose one model over another. Advertisers should remain open to both and even consider the advantages of a hybrid model, where an upfront investment is paid, combined with a long-term commission arrangement. Although the upfront investment will be lower than a flat fee, future earnings for the content creator are unlimited, depending on the success of the campaign.