AdGate Advisor
"If it ain't broke why are they changing it?"
Good morning,
We are making tremendous progress and hope to open the doors to the
AdGateWorls site early in January. Today's topic though is on the fledgling
industry of social advertising. Let's get caught up: When first introduced
to this model it was obvious that it was a completely different animal.
Giving an incentive to advertisers that also doubled as consumers was way
outside the 'box'. When you spent the time understanding the premise it
actually made sense. These early attempts borrowed heavilly from the online
high yield investment program community and therefore had no long term hope
of survivial. Until a real sustainable rebate formula could be configured
this business/advertising concept was no different then any other 'E-Gold
game'.
This changed overnight when a model that tied a advertiser/member rebate
directly to the corporate advertising revenue was used. It became a
symbiotic relationship that actually worked. The sheer beauty of giving
each advertiser/member, a real stake in introducing others to the community
helps to maintain and grow the overall daily revenues and stability. The
formula was quite simple and efficient. A large portion of the daily
revenues are shared with members that had active advertising AND had
qualified by viewing a specific number of other member ads. This rebate
program would give each member the ability to recieve ALL advertising
dollars back and potentially provide 25% profit for being a viewer. This
original model (also used by AdGate's system), gives each advertiser a real
cost effective advertising vehicle AND rewards this person with targeted
traffic (using our categorized/localized viewing system).
The second, OPTIONAL, revenue stream allows these same advertisers to
receive a commission on the advertising sales of those members that were
sponsored by existing advertisers. This strictly OPTIONAL addition to the
formula DOES NOT preclude the 'advertising ONLY' member from taking part in
the daily rebates. Thousands of people have proven this exact model does
work and is sustainable. Like any other business it would fail if no one
ever wanted to purchase the product being sold.....advertising. With
internet advertising revenues sky rocketing (even in such tough time) this
would appear to be the type of industry we should ALL want to take shelter
in.
The AdGate development team believes in the this model and decided to
evolve the concept by adding benefits and future applications that will
enhance each members experience. However, the actual rebate formula DID NOT
need to change. Several companies are now emerging that 'claim' to be
offering similar social advertising opportunities.
On a closer examination you will find that most of them are not even
remotely similar from a math perspective. The risk to your funds is
substantially higher. Some of the 'fine print' changes to be aware of:
1) Some of these sites have taken the 'optional' recruiting component and
now enforce it in some type of mandatory qualifier that brings the social
advertising concept back into a full MLM style program. Why would any
developer borrow from a model that results in complete failure for over 98%
of its participants? The answer is simple. Pure greed. How much ADDITIONAL
money will be left over when members do not reach these lofty recruiting
levels?
2) Even more disturbing is the change in the rebate/commission formula
that is being touted by these sites. The very nature of the original idea
was to provide a 'cost effective' advertising tool that also offered a
profit for viewing other advertisements. When reviewing these sites and
programs two things are crystal clear. The creators have either placed a
huge qualifying burden on the member (dollar spent/recruiting) OR they have
blatantly 'tweaked' the expiration of rebate benefits. Daily rebates are
always based on the unknown (vairiable) revenue generated daily. If this is
the case how can the rebates simply stop on a specific day (whether it is
day fifty or 360)? The member risk factor here is enormous and the change
GREATLY benefits the program developers ONLY. Even worse is another trick
we have seen recently. One'new' company pays daily rebates up to 100% of
advertising dollars and then gives a 25% bonus in AD PACKS. Do the math and
look at how long a person would have to wait to even see any REAL MONEY
benefit with this program. This would be bad enough if it wasn't for the
huge qualifers to even receive the 25% in ad packs!!
3) Last but certainly not least is the business model that 'claims' to be
able to operate corporately within the United States by providing web
hosting services. This is by far the most irresponsible action and shows a
comple disregard for the safety, privacy and security of the advertisers.
The real point of this little discussion is that all social advertising
models are NOT created equal. Please ask yourself the following questions
before spending any hard earned funds:
1) Why does the program place substantial qualifiers on recieving a rebate
beyond viewing other ads?
2) Is there a chance that my ad packs could expire before a reasonable
amount of my advertising dollars have been returned?
3) Is the program simply setting you up in a glorified MLM scheme that
REQUIRES you to recruit and maintain certain levels of membership and
forced advertising spends monthly?
The real disturbing part about some of these programs is that they are run
by people that have always stated that the original formula and math were a
thing of beauty. You have to wonder why they decided to change it so
drastically. Maybe they think people are so desperate that they will not
notice.
We have far more respect for our members and friends. Greed does funny
things to people. We believe that 'stacking the deck' against ANY member is
not necessary to succeed. Please forward this to anyone that may get caught
in the trap.
Best Regards,
AdGate Team
Automated FOREX Super Robot
http://ibqltd.fapturbo.hop.clickbank.net/
Monday, December 15, 2008
14December2008: AdgateWorld Update - AdGate Advisor "If it ain't broke why are they changing it?"
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