I like when companies like Buddy media are prepared to ‘stand by their work and take on risk upfront’ eg they are prepared to do all the effort and get paid on delivery.
Personally except for very few signups do I think the average user is worth $1 per user, but that’s a matter for the market to sort out.
Buddy Media's main trick is that it sells its branded widgets with a simple "performance marketing" metric:
Marketers typically pay $1 each time a user signs up to use their widget. Want a branded widget with 100,000 users? That'll cost $100,000
or about as much as it costs to buy
10 million impressions at a $10 CPM
or 2.5 inches on the front page of the Sunday Times.