AdGate Advisor
“If it ain’t broke why are they changing it?”
We are making tremendous progress and hope to open the doors to the AdGateWorld 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 heavily from the online high yield investment program community and therefore had no long term hope of survival. 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 receive 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 (variable) 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 qualifiers 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 complete 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 receiving 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
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