Saturday, June 16, 2007
PayPerPost Has Raised $7 Million--What To Do With It?
What do companies like PayPerPost do with that much money? The obvious answer most people would put in is "Give it to ME!!". While I love that idea (and you can still do that!), the better thing is to invest in the company's current needs. In order to have a better, more smoothly, running company the money needs to go in several directions.
PayPerPost, having established themselves as a top advertiser, should put more money into that advertising by paying larger amounts to the bloggers for the opportunities that become available. While there will always be those who will write the advertising for small amounts of money, there are not always those who write especially well. Drawing the better writers in with larger opportunity amounts would bring more advertisers to the company for more opportunities.
The next thing I would suggest goes right along with what I just said. The company needs to get to the advertisers to draw them in. Spend some of the money bringing in new advertisers because when that's happening, everyone wins.
Perhaps it would be wise to invest in more employees who would be available to check the postings, answer questions and help the newbies since it apparently takes some time to respond to the submitted posts and help those having troubles.
It would be a good idea to buy more bandwidth so that the pages would load faster. I do realize that many people have slower modems but the company that has a large bandwidth can be superior to a smaller company that cannot handle that type of expense.
Just a note about blog ethics, this particular type of posting is not spam although bloggers can do that. It is never a good idea to spam. And we need to keep it honest. Putting more money toward the people writing the posts helps them to believe that what they write is important to PayPerPost and to the advertisers.
Now, the press release:
The PayPerPost Revolution Accelerates, Sponsored Blogging Marketplace Secures $7 Million Series B
Draper Fisher Jurvetson leads round and joins Board of Directors
ORLANDO, FL – (June 12, 2007) – PayPerPost, the leading marketplace for advertisers to reach bloggers and other consumer content creators, today announced it has completed a $7 million second round investment led by Draper Fisher Jurvetson, an investor in the company's Series A and one of the world’s leading high-technology venture capital firms. The financing brings the total amount of capital raised by PayPerPost to over $10 million, giving the company considerable resources for further development as the industry’s leading Consumer Generated Advertising marketplace. Additional participants in the round include existing investors Inflexion Partners and Village Ventures as well as new investor DFJ Gotham. With this investment, DFJ Managing Director Josh Stein also joins PayPerPost’s Board of Directors.
“PayPerPost created this exciting new advertising space and has established itself as the industry leader,” said Ted Murphy, chief executive officer of PayPerPost. “Although we’ve only used a portion of our first round capital, this added support from investors unlocks significant growth potential. Our content creator and advertiser ROI metrics clearly demonstrate the upside for PayPerPost’s model. We intend to use this capital to build the infrastructure, visibility and professional expertise necessary to reach and retain a greater network of advertisers and content creators than ever before.”
Since its founding in June of 2006, PayPerPost has signed more than 6,500 advertisers to its groundbreaking service, which has enabled Consumer Content Creators to be compensated for their efforts discussing specific companies, products or services via blogs, videos or other media. The content creators are required to disclose relationships with advertisers on their blog, providing transparency for the end reader. Over 125,000 Internet postings, most in the form of blogs, have already earned money for their creators through PayPerPost’s innovative marketplace. PayPerPost recently released PayPerPost Direct, a disruptive new service that allows advertisers to contract and negotiate directly with individual bloggers they identify through a safe, managed system.
“PayPerPost has laid a strong foundation for the future,” noted Tim Draper, founder and managing director of Draper Fisher Jurvetson. “It continues to attract a critical mass of participants from both the advertising and blogging communities. Analogous to Overture’s sponsored search model, we believe PayPerPost’s business model holds disruptive potential and will enable the company to thrive in the evolving paid-content arena.”
To mark the $7 million dollar funding, PayPerPost has launched a new website detailing the company’s service offering at http://www.payperpost.com. Bloggers and advertisers can easily sign up at the site and begin leveraging the self service marketplace.
Categories: Sponsor Paid