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Tuesday, November 24, 2009

Resolution 3: Mitigate the risk

Ask yourself this question: "If any one of my publishers were to leave my program, or the revenue they generate dropped off significantly, would my program be critically impacted?" If 50 percent or more of your revenue is being generated by three or less publishers, or if one publisher is generating more than 30 percent of your revenue, the answer is "Yes!", and you have a concentration risk. When too few publishers are responsible for too great a percentage of your program's revenues, there is a significant potential for instability in your program's performance.

Take a look at potential concentration risks in your program today, and reduce them by bringing in new partners, expanding your mix of publisher business models, and increasing the number of publishers who are responsible for driving significant revenue. By running a Performance Report for the previous month or two by using the "Display by Publisher Company" option, you can easily identify the publishers who are critical to your program.

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