We asked some questions of Durk Price, founder and CEO of eAccountableOPM. Durk gave us his take on challenges for the industry, the evolving OPM space and more.
What’s the biggest change you’ve seen in the OPM space over the last few years?
I have seen two major changes in the OPM space: 1. Acceptance by all networks of the role of the OPM in growing the affiliate channel. 2. The number of OPM’s competing in the space. I add the second item as it does relate to the first one almost directly. More acceptance by the networks has meant more acceptance of the practice of OPM and hence more opportunities.
How do you see the role of OPMs evolving over the next 3 to 5 years?
I think the growth of the OPM industry parallels the growth of the SEM industry 5 years ago. When SEM’s first got going they were typically either SEO or PPC in orientation. As they evolved they got into providing more and more services to their clients be it display, social, CSE and marketplace. I see the same thing happening to OPMs. Our clients are asking us what other services we can provide for them. So, we are responding accordingly and I think all OPMs will offer more services over time.
What role, if any, will the relationship between the networks and agencies/OPMs play in the overall performance marketing space moving forward?
Networks are still the key drivers of the space. As they provide more tools they will grow as well. As they differentiate themselves they will prosper. I think the big 3 (Commission Junction, Google Affiliate Network and LinkShare) are going to be the big 3 for some time. But in thinking of them as ABC, NBC and CBS, they will jockey for number 1 position even more aggressively over the coming years. This is good for the space. And then you have the specialty networks, the “cable” guys so to speak, providing great value and distribution through their loyal followings. They don’t get much more loyal than the affiliates who love ShareASale and AvantLink. OPMs fit in by finding the best fit for their clients. Fit implies tools, pricing and affiliate access. OPMs provide the “glue” between the clients, networks, affiliates. The OPM space is a great place to be.
What’s the biggest challenge for your business at this moment?
Growth. We are growing rapidly and trying to hire people and get them trained and getting our new customers accustomed to the affiliate channel has been our biggest challenge the last few years. But in no way is this a complaint. We have been truly blessed with great customers and great people to work with.
What the biggest challenge currently facing the performance marketing industry as a whole?
Without a doubt it is the nationwide rush by states to enact some type of Affiliate Nexus taxes. This is one of the most misguided exercises in taxation I have ever seen. In a tough economy states should be doing everything possible to create jobs through small businesses. Big businesses don’t create jobs, small businesses to do in these kinds of economic times. So, here are states going after small businesses with virtually no control over how a consumer utilizes the Internet being charged with collecting taxes for one of 7,000 plus tax jurisdictions in the US.