Less than 24-hours ago I published a blog post on pepperjamBLOG.com speculating about Google potentially dissolving Performics, Doubleclick’s (DCLK) Affiliate Marketing Network. The post originated from calls that we have received over the last few days suggesting that the rumor was true, as well as the fact that other well-known affiliate marketing bloggers, including Jeff Molander (a former Performics employee) from ThoughtShapers.com and Shawn Collins from AffiliateTip.com were also speculating. I provided an analysis of why I thought speculation and dialogue over the rumor made sense: First, I argued that it would be a conflict of interest for Google to get involved in affiliate marketing and search-engine marketing management. Second, I argued that Google owning Performics means that they (Google) would be responsible for delivering advertisers return-on-investment (ROI), a responsibility and liability that I believe is inconsistent with Google’s core business model and focus, which I believe is ad delivery.

This morning I received an e-mail from the President of Performics, Stuart Frankel (the entire comment is provided below) in response to my (and others) speculation.

Kris Jones, President & CEO, Pepperjam

________________________________________

RESPONSE FROM: Stuart Frankel, President, Performics

I am writing in response to your recent post speculating that Performics is in the process of dissolving the company and terminating it’s employees. Your comments are false and are potentially damaging to Performics’ business and its employees. Since the announcement on April 13, 2007 that Google and DoubleClick have entered into an definitive agreement whereby Google has agreed to purchase DoubleClick, we have consistently and repeatedly communicated to our clients, publishers and employees that it is business as usual at Performics. Let me make this absolutely clear. We are not dissolving or shutting down or significantly altering the Performics business. To the contrary, we continue to actively build our core affiliate and search business units. In fact, we are currently recruiting for 25 open positions across all areas of Performics. In particular, our affiliate business has seen dramatic growth in 2007 and as a result, DoubleClick has accelerated its investment in this area of its business. We are a large supporter and participant in industry forums and we support an open and active dialogue regarding the affiliate marketing industry. Your comments are irresponsible and therefore I am requesting that you immediately retract them. We are proud of what we have accomplished thus far at Performics and look forward to aggressively and responsibly continuing to run and grow our business.

Stuart Frankel
President
Performics

________________________________________

Based on this response from Performics it is still my opinion that something is in the works. As I mentioned in my previous post I certainly hope that Google does not dissolve Performics and Stuart’s e-mail to me suggests that this is NOT the case. However, I do believe that reasonable speculation still exists over what exactly will happen to Performics. Will Performics be acquired by Valueclick (VCLK), aQuantive (AQNT) or Linkshare’s parent company Rakuten? It is my professional opinion that something will happen - let’s see if I’m right?

UPDATE: Performics President Responds to Speculation Over Google - Performics Dissolution Rumor - CLICK HERE.

Sources suggest that Google has or is in the process of closing down Performics, Doubleclick’s (DCLK) Affiliate Marketing Network.

Performics is the #3 player in the traditional affiliate marketing space behind Commission Junction (VCLK) and Linkshare, respectively. In addition, Performics is the largest SEM Agency in the United States and has clients including Target.com, America Online, Blair Corp., Bose, Cingular, CompUSA, Eddie Bauer, Fairmont Hotels, HP Shopping, J. Jill, Jos. A. Banks, Kohl’s, L.L. Bean, Motorola, OfficeMax, PC Connection, RedEnvelope, My Sony, Quickbook, Staples, Verizon Wireless, and Wyndham Hotels to name a few.

We can’t disclose our source but I can tell you that we’ve been receiving calls from Performics merchants saying that Performics employees were being let go.

It appears that Pepperjam’s phones are not the only ones ringing - see Shawn Collins AffiliateTip.com for more insight.

MAKING SENSE OF THIS RUMOR:

First, to me it completely makes sense that it would be a conflict of interest for Google to get involved in affiliate marketing and search-engine marketing management.

Therefore, owning Performics means that Google would be responsible for delivering advertisers return-on-investment (ROI).

My friends, Google is not about to get involved in that business - the responsibility and liability is of no interest to Google.

Second, Google is explicitly focused on advertising delivery, not management and consulting. The acquisition of Doubleclick made sense to Google because Doubleclick owns one of the leading online display ad delivery systems. While it is scary to think that Google would contemplate getting involved in management, I am convinced they can not and will not.

Arguably the most comprehensive SEO resource outside of Aaron Wall’s unparalleled SEO Book is Stuntdubl’s most recent post entitled, “The SEO Playbook.” Now that’s a post I would have paid $100 to read. CLICK HERE - it’s free.

NOTE TO PEPPERJAM SEO STAFF - THIS IS A MUST READ - YOU WILL NOT RECEIVE AN E-MAIL REMINDER, BUT THERE WILL BE A QUIZ ON FRIDAY MORNING.

Great work Todd!

I can’t tell you how truly excited I am about announcing the logistics of Elite Retreat - Orlando.

Honestly, the last Elite Retreat, which was held in San Francisco, was an amazing experience for me and remains the highlight of my speaking career.

I keep in touch with Elite Retreat alumni on an almost daily basis and I am taken back every time I hear another success story - it is a fact that many of our alumni have doubled and tripled their revenue since graduating from Elite Retreat - others have started new, successful businesses, while just about everyone has taken their existing businesses to an entirely different level based on the hands-on experience each took from Elite Retreat.

Here are the specifics of Elite Retreat - Orlando:

SPECIAL OFFER: For a limited-time, cost of admission to Elite Retreat includes FREE two-days lodging and FREE breakfast and lunch buffet at host hotel ($750 value). Offer expires 4/30/07 or until tickets sell-out, whichever comes first. Sign-up today at http://www.eliteretreat.info

DATE: June 8 – 9, 2007
PLACE: Hilton in the Walt Disney Resort, Orlando, Florida
PRINCIPAL SPEAKERS: Jeremy “Shoemoney” Schoemaker, President, Shoemoney Media Group (Online Monetization Expert); Lee Dodd, President, Earners Forum (Community / Forums Expert); Kristopher B. Jones, President, Pepperjam (Search-Engine / Affiliate Marketing Expert); Neil Patel, CTO, Pronet Advertising (Social Media Expert); David Adams, President, CPA-Affiliates.com (CPA Expert).
KEYNOTE SPEAKER: Alex Zhardanovsky, Co-Founder, AzoogleAds

In my opinion, the Elite Retreat is the best conference ever conceived. In short, I believe it is the ideal setting for attendees to interact directly, one-on-one with successful internet entrepreneurs (speakers and other attendees). No sponsors. No sales pitches. Just raw and uncensored how-to internet marketing. At Elite Retreat you’ll learn from pros who’ve aleady made the mistakes you’ll want to avoid and reaped the benefits of learning the tricks of successful online marketing.

NOTE: Elite Retreat only accepts 30 attendees and it is on a first-come, first-serve basis. Please submit your application to attend at http://www.eliteretreat.info.

Insiders know Marcus (aka, Mediadonis) as one of the smartest and coolest guys in online marketing - He’s been referred to as “the crazy german guy” by more than a few big name people (Dave Naylor and Jeremy Schoemaker, to name just two) and has been referred to by countless others as one of the top SEO’s in Germany.

I know Marcus as a friend, business colleague, and a brilliant online marketer - I’ve learned a lot from Marcus and must admit…one of the reasons I make it a point to travel around the country to various conferences is to hang out with close friends like Marcus.

So………..Marcus spent the first half of last week in New York City at Search-Engine Strategies - New York. On Friday morning Marcus rented a car and travelled to the Pepperplex.

What happened once Marcus got here is highly confidential (haha), but I can tell you that we had an amazing time and can’t thank Marcus enough for visiting us.

FYI: Marcus is co-host of Webmasters on the Roof on WebmasterRadio.FM. Note that the show is in German….although I did a LIVE show with Marcus during SES - New York - LISTEN HERE - and a decent part of the show was in English.

HERE are some non-censored pictures from Friday night with Marcus and the Pepperjam Team.

Check out Marcus’ Blog - Mediadonis HERE.

Also, on Saturday morning we gave Marcus a tour of the Pepperplex and couldn’t help but place him in the CEO’s chair and interview him on what he’s been up to in the internet marketing universe.

Can you say Pepperjam Germany?

Enjoy this video with Marcus:

Don’t Forget to check out PICTURES! CLICK HERE!

News sources everywhere have confirmed that Google has agreed to acquire Doubleclick for $3.1 BILLION in Cash. Doubleclick is the parent company of the third largest traditional affiliate marketing network: Performics.

I’m a bit taken back by this acquisition…not because I didn’t believe it could happen (especially since there have been rumors for weeks that Microsoft was in talks to acquire Doubleclick) but because Google is now the owner of the third largest affiliate marketing network in the United States….not to mention one of the most sophisticated and widely used ad serving platforms.

A bit more ironic about the acquisition is that I had the pleasure of sitting on a panel on Thursday of this week (two days ago) at Search-Engine Strategies (SES) - New York (Dealing with Affiliates panel) with my friend Chris Henger who is Vice-President of Affiliate Marketing at Performics - during Chris’ introduction I grabbed the microphone just as Chris said “VP of Affiliate Marketing at Performics” and said jokingly, “a Microsoft Company.” I definitely got some laughs from the audience, but Chris quickly corrected me by saying…”no, we are a Doubleclick Company.” Little did I know that Google would announce the buyout about 24-hours later (my guess is that Chris knew, which probably explains the funny look he gave me, which included a bright white, full teeth smile).

Back to the buyout. According to the New York Times Google paid ($3.1 Billion) about 10X Doubleclick’s revenues ($300 million). That is a very healthy multiple - other blogs have suggested Google was willing to pay a bit more since Microsoft was also pushing to make the acquisition. While I agree that that likely influenced the final number the truth is that the Doubleclick / Performics buyout was the most strategic move Google could have made to immediately enter both the affiliate marketing and broad display ad serving marketplace (not to mention the SEM management business.)

FYI: Performics is the largest SEM management agency in the United States.

NOTE TO GOOGLE: Good luck creating a Chinese Wall between your ad serving business (Adwords / Adsense, etc.) and your management business (Performics) - that has conflict of interest and Congressional hearings written all over it.

I’m quite concerned about what this buyout means to the broader affiliate marketing industry. For instance, I honestly believe that the buyout represents a serious depreciation in value of Commission Junction and Linkshare and this means an eventual disproportionate control of the affiliate marketing industry - CJ and Linkshare will become irrelevant within 24 months unless they are acquired by Yahoo or Microsoft or IAC/InterActiveCorp (Fox).

Google will ultimately (within a few months) integrate all media holdings into something like “Google Media Solutions,” which will provide advertisers incredible value and efficiency - this will ultimately mean that merchants from Commission Junction and Linkshare will move to the Google Affiliate Network because of the cost benefits and efficiencies of doing so.

This is unfortunate because I don’t believe Google treats all advertisers fairly, especially as it relates to providing preferencial treatment to its largest advertisers (i.e., EBAY, Amazon, Shopping.com, etc.). In many cases, Google’s rules do not apply to their largest advertisers, which is unfair and diminishes the value Google provides to smaller and medium sized advertisers.

The internet is supposed to be the equalizer and Google its shepard - the revolution that provides business opportunities to kids with computers and like-minded entrepreneurs with a dream. I don’t believe the internet should be a platform for a company like Google to rule the world. I’m not naysaying the power Google provides us all to live our life more efficiently; however, I’m less interested during my lifetime in witnessing the creation of the most disgustingly POWERFUL and PROFITABLE company…I mean government…ever known, especially if that event jeopardizes the essence of what the internet should represent.

My guess is that we will see some additional buyouts of similar companies in the near future. I wouldn’t be surprised if we hear a Microsoft…Vauleclick buyout announced in the coming weeks. If Microsoft doesn’t do something soon they will become irrelevant as anything more than an old software company. Microsoft should take Google’s lead and purchase Yahoo and follow that up with an acquisition of Valueclick - once this happens (or something similar), which it will, things will get even more interesting (sad).

Oh yaaaaaaaaaaaaaaaaaaaaaaaa, Meet the Pepperjam Team Week 13th…. It seems like we started this thing just a few weeks ago, but in fact we are on video # 13. By the way - we are approaching 15,000 views on our Meet the Pepperjam Team Videos - not bad, but I don’t think we’ve even touched the potential of our idea to share brief stories of each and every one of our employees with the world.

This week we have one of our nicest and smartest employees, Kate Sarnak, Senior Affiliate Marketing Manager.

After giving some fun background info Kate shares some of her favorite things to do when she has free time and what she values most about affiliate marketers.

Don’t wait……..Check out Kate’s Meet the Pepperjam Video below:

For those of you who don’t know the “rules” behind the Meet the Pepperjam Video Series, here they are:

Every Friday Pepperjam will post a new video interview of a member of our staff - everyone will be included - affiliates managers, executives, search-engine marketing managers, directors, software engineers, assistants, online media buyers, and interns. The person being interviewed won’t know he / she has been chosen until about 30 seconds before the interview - this way you’ll get an unrehearsed, real world look at the employee…hopefully, this will make it interesting and non-corporate, which is what we are known and respected for across the internet marketing industry.

Why are we doing this? Well, I am proud of our team and I think you’ll find them as interesting and intelligent as I do. Also, I’m a student of viral video and the social media space and I want to test the waters as it relates to what corporate america is doing (and not doing) to spread buzz and build next generation work places.

Finally, I just thought it would be cool to put some people in front of a video camera that have never done so before, have a little bit of fun, and see if Pepperjam can spread some additional buzz about why we are the leader in online marketing.

FYI - all videos will also be posted to YouTube. If you think what we are doing is outside-the-box and interesting please blog about it and share the story with the world.

Our previous videos include:

Maura Goodwin
Tara Lou
Dean Karasinski
Kim Noler (dated YouTube founder)
Stephanie Yachim
Roxy (Pepperjam’s English Bulldog)
Kris Jones
Katharine Dempsey
Ken Mohn Jr.
Mandy Foley
Tara DeGiusto
Robyn Martin

Other fun Pepperjam Vids:
Naked Crazy Man Video
Pepperjam Adds Ping Pong Table to Pepperplex
Roxy with the Tony Robbins Beach Ball

Video Recap and Reflections on SES - New York by Kris Jones

NOTE: This video is about 5-minutes in length and is R-Rated.

Kris Jones on Search Arbitrage

NOTE: The video isabout 20 minutes in length - I go into some detail about the presentation I gave on search arbitrage during the event and reflect on what other panelists had to say, including Nick Fox, head of the Ad Quality Team at Google.

Enjoy!

See some of Pepperjam’s pictures HERE!

A small army of Pepperjammers, including myself, Michael Jones (COO / General Counsel), Ken Mohn, Jr. (VP of Search), Aaron Baker (VP of Sales & Marketing), Krista Golanoski (Director of Search), Quinn Kavanagh (Senior Account Executive), and Jennifer Corradini (Senior Account Executive) are making final preparations to attend Search-Engine Strategies (SES) - New York. We are leaving our offices around 4:00p.m. so that we have enough time to check into the Hilton and grab a table at the bar prior to the place getting swamped with attendees later in the night.

Senior Pepperjammers will be on hand at the Pepperjam Exhibit Booth - if you are a prospective client our team is prepared to answer any questions you may have about any of our services, including search-engine marketing, affiliate marketing, social media optimization, and online media planning and buying.

I will be speaking on two separate panels: (1) “Search Arbitrage Issues” and (2) “Dealing with Affiliates,” which are scheduled for Thursday, April 12, 2007 from 9:00am - 10:15am. and 2:00pm - 3:15pm, respectively.

If you are attending SES - NY and see any of us during the show please say hello! We are usually pretty easy to notice since we walk in packs, wear black, and are typically wearing our Inc. 500 shirts.

This week on “Meet the Pepperjam Team” we introduce Robyn E. Martin, Pepperjam’s Director of Affiliate Marketing.

Robyn is the sweetheart of yours truly (me) - we will be getting married on August 11, 2007.

In this video Robyn talks about the perks of working for Pepperjam - she shares the names of some of her favorite Super Affiliates and talks about life in Washington D.C. (after college) and why her grandfather is one of her most significant mentors….

Just watch the video - you’ll fall in love with Robyn…just like I have.

For those of you who don’t know the “rules” behind the Meet the Pepperjam Video Series, here they are:

Every Friday Pepperjam will post a new video interview of a member of our staff - everyone will be included - affiliates managers, executives, search-engine marketing managers, directors, software engineers, assistants, online media buyers, and interns. The person being interviewed won’t know he / she has been chosen until about 30 seconds before the interview - this way you’ll get an unrehearsed, real world look at the employee…hopefully, this will make it interesting and non-corporate, which is what we are known and respected for across the internet marketing industry.

Why are we doing this? Well, I am proud of our team and I think you’ll find them as interesting and intelligent as I do. Also, I’m a student of viral video and the social media space and I want to test the waters as it relates to what corporate america is doing (and not doing) to spread buzz and build next generation work places.

Finally, I just thought it would be cool to put some people in front of a video camera that have never done so before, have a little bit of fun, and see if Pepperjam can spread some additional buzz about why we are the leader in online marketing.

FYI - all videos will also be posted to YouTube. If you think what we are doing is outside-the-box and interesting please blog about it and share the story with the world.

Our previous videos include:

Maura Goodwin
Tara Lou
Dean Karasinski
Kim Noler (dated YouTube founder)
Stephanie Yachim
Roxy (Pepperjam’s English Bulldog)
Kris Jones
Katharine Dempsey
Ken Mohn Jr.
Mandy Foley
Tara DeGiusto

Other fun Pepperjam Vids:
Naked Crazy Man Video
Pepperjam Adds Ping Pong Table to Pepperplex
Roxy with the Tony Robbins Beach Ball