Wednesday, 5 June 2013

How do PTC Sites Like ClixSense Work?

Question: "How do PTC websites work? (like Neobux)?"
Click here to visit the page.

Dodge Man,

What are the marketing and financial mechanics behind PTC sites?

Paid-to-click (PTC) sites make money from 2 main sources:

1) from content publishers who want the ads on their site to be clicked; and
2) from their own community of "clickers".


PTC systems make money from their customers (mainly content publishers) who pay them to click on their ads (actually their rhetoric is really subtle). In really, PTC sites crowdsource the process of clicking on ads to a vast community of real users worldwide, which makes it difficult for ad networks to detect any fraudulent pattern.

This way content publishers artificially increase their own income by benefiting from a close-to-perfection (supposedly pattern-less) but still fake stream of clicks on the ads they publish on their site from ad networks.

Content publishers basically enter advertising revenue sharing programs (e.g., Google AdSense) from ad networks that enroll customers in ad programs (e.g., Google AdWords). And greed makes them fool ad networks by leveraging PTC service offerings.

Indeed, based on simple maths, content publishers can make at least $10 for each $1 invested with PTC sites. Out of that one dollar, a minimum of 90% goes directly in the pocket of the PTC site owners, the remaining garbage is distributed to the crowded hierarchical pile of fooled get-rich-quick candidates.

PTC sites may pay their "sub-contractors" $0.005 per click, and double (i.e., $0.01 per click) if users are good at getting referrals (sub-sub-contractors).


To a lesser extent, PTC sites get some revenue from members of their community of clickers in different ways. So they may ask their members to pay:

a) to become a member (i.e., to be given the opportunity to click on ads);
b) to upgrade their membership (i.e., to benefit from a higher revenue share);
c) to advertise (i.e., to get more referrals hence commissions); and
d) to buy or rent referrals (i.e., to increase their own revenue).


Members being paid to click on ads is questionable from an ethical standpoint, so PTC sites charging publishers for the same purpose. But at least the money flows from the advertisers to the ad networks, then to content publishers, then to PTC sites, and finally to the community of clickers. The only ones losing in this food-chain are the initial payers—i.e., the advertisers—who do not really get what they pay for. In such a case, advertisers are scammed by content publishers.

It often happens that PTC sites have difficulty recruiting enough content publishers as customers and rely solely on fees they can collect form their member community. In such a case, community members are scammed by the PTC site they subscribe to. In some cases, PTC sites are just created with no intention to recruit publishers but merely to purposely abuse their community, financially.

To my best knowledge and belief.

—Pascal Perry
Online Findability and SEO Strategist
Incidentally, Google AdWords advertiser since its inception from 2004

No comments: