In theory, the value would work like this: QUality publishers get bigger payouts, shite ones get it cut. This rewards good work and the only problem is for those crap affs who succeed in turning a profit by blending in with everyone else.

@gabriel  theory only works in a perfect world. First, define quality because Google’s definition of quality (for example) has little to do with my (publisher’s) definition of quality. Second, the middlemen need to be paid for whatever they do… let them start measuring quality and you’ll also start giving them a bigger piece of the pie.

Finally (for me paying attention to this post), lots of excellent affiliates sign up for a new program and watch for a while, or run it on lesser properties while evaluating it… I rarely implement a merchants program until I have tested it, considered it etc.  During that time period, am I “shite”? No doubt performers should be paid commensurate, but we should first require the grader to be qualified.

I wonder from Google’s comments what there next moves will be
- broaden the adwords ad system to allow room for more CPA deals / lead gen inside the SERP
- offer free hosting and CMS for Google AdWords customers (& track inventory)
- offer credit cards
- offer their own “goog” currency system

@Aaron: Since the Google person mentioned Google would be increasing the CPA activity in AdSense, I spent some time with the performics affiliate booth (re-branded Google Affiliate Program).  Not a good experience… I walked away with a strong sense of FYIV, that Google would absorb this unit into AdSense very quickly, and that it was risky to participate at the very least rightnow, and probably forever.

CPA is all about letting the merchant set the price… under Google’s watch, that is especially attractive  when there is information asymmetry — Google’s special gift.