In an age where added value is king, whoever supplies the most value wins. We would never encourage a higher compensation for brokerage services, but we recognize that the broker's role has increased. As a mailer, if you're not getting a lot of added value, you're not using the right broker.

I don't believer in compensating list brokers on a performance basis. We, as an industry, have come up with a compensation model that's worked for years. Today, mailers are benefiting because we have to throw in so much added value service. But that's fine with us, because mailers are happy with our service and they keep coming back. If these services were priced on an a lacarte model, the mailers would suffer; prices would go up.

This is a very competitive marketplace, and equal pricing across the board is important.It's what you do for your commission that separates you from your competition.

The other problem with performance-based compensation is we broker media and ideas, but that's only part of a successful marketing program. Is the offer good? Is the pricing right? Is the mailer reputable? Those things are out of our control. If compensation is tied to the success of a campaign, brokers would need to play an active role in all the elements that make it work. Marketers aren't willing to include brokers in decisions about the message, customer service, or fulfillment. And brokers don't necessarily want to be in that business.

Jay Schwedelson is corporate vice president of Worldata & WebConnect, where he oversees strategic direction and new business development. Under his leadership, Worldata & WebConnect has become the industry leader in permission Email marketing services and interactive advertising solutions.

Schwedelson is active in the Direct Marketing Association, where he serves as a member of the Internet Advisory Board Committee, Catalog Council and List & Database Council, and Marketing Technology and Internet Council. Jay also serves as an advisory board member for the Association of Interactive Media and Co-Chairs the Council for Responsible Email.
He continues his position as the subcommittee chairman for The DMA’s List Leaders EMail Committee.