Microsoft today announced its decision to use a tiered system for its search commission structure, with 15 percentas the maximum, which is in contrast to competitors Google and Yahoo.
A spokesman for MSN told Mediaweek UK that he “expected the majority of agencies to make that level.”
In January, Google caused controversy by scrapping its 15 percent agency commission rate in favor of Best Practice Funding, which takes the form of a quarterly financial reward based on billing. Yahoo Search Marketing followed suit in April, when it dropped commission from 15 percentto 10 percentto agencies spending more than £80,000 (approximately $150,000) per month, and 5 percentto those spending more than £20,000 (more than$37,000). Below that, no commission will be paid.
MSN is testing its paid search through Microsoft adCenter, which is set to make its UK debut in June.