Google Model Killer?

It's plausible.

Can our pay-the-buyer model kill Google's pay-the-search-engine model? Yes, in theory:

  • Google makes advertisers pay for clicks from non-buyers and fraudsters.
  • Paybuyer makes advertisers pay only for clicks from verified buyers.
  • Google keeps all the ad money for itself and its affiliates.
  • Paybuyer gives buyers 90% of the ad money.

Economically enforced relevance.

In general, ads on Paybuyer should be as relevant as those on Google.

The pay-the-buyer search model rewards sellers that provide quality/value that leads to a high enough sales conversion rate that the sellers can afford to pay buyers. Sellers with inadequate conversion rates will lose money fast and be knocked out of the directory.

Thus, the ability to profitably pay buyers is a quality/value screen.

The Paybuyer model may also lead to more sellers being discovered by buyers. In the Google model, being at the top of the directory is a critical advantage as most users don't click on many listings. In the Paybuyer model, buyers have an incentive to click on all the listings that pay them enough (user preferences will vary).