If for CPC this was the solution, then for this model, goog doesnt even want to listen about it :)

Jason – I may be completely wrong since my assessment is theoritical, and you seem to be real guy…

You talk about the action being carried by the publisher to generate revenue .. but now google can say – hey adevertiser its your problem since you didnt define your action tight enough – and google can somewhat keep their hands out of the scenario. May be to reduce the fraud to zero advertiser need to define the action as a purchase . But it is advertisers responsibility and not google’s …
With this system, goog can keep their hands off the fraud, with CPC advertiser didnt have any option to prevent fraud and hence the responsibility lied on goog.

As an owner of a PPA Network (traditionally referred to as CPA – Cost Per Action. But of Course GOOG loves to have their own terms) I can tell you that opening up CPA actions to their publishers opens GOOG up to a whole new world of fraud. People will take the actions themselves and get farms of people to ‘subscribe to your newsletter’ or what ever it might be in order to generate their PPA commissions. Now they can make $5-$10-$50 per action instead of a few pennies a click.

A good portion of our time is spent filtering out fraudsters trying to game our CPA systems. GOOG will have the same problem 10 fold. or 100000 fold as they have a few more affiliates than we do…

That being said, I am VERY excited to see GOOG moving into this space. This is the pricing model of the future and will open up many new advertisers and publishers to the benefits and gains to be had through this system. Thus massively increasing the market for us all.

Jason Bailey
MillNicMedia.com