Friday, November 27, 2009

Should We Buy Adgitize Ads in December?

As the Adgitize transition month is winding down, the Adgitize advertising network is holding up remarkably well. Last October 30th, there were 202 ads on the network. Nearly 1 month later, there are 176 ads (November 27th). This is only a 12.9% decline in purchased ads since the cost increased from $14 per month to $24/month.

While the cost of an ad increased by 71.4%, has the Adgitize member reimbursement increased as expected?

An advertiser who pays $24 per month (31 day advertising period)  must earn $0.7742 per day to earn his money back. From Adgitize's initial projections, member earnings would increase from:

300 points a day  from 44 cents a day to 72 cents a day
360 points a day  from 53 cents a day to 86 cents a day

This implies that breakeven would be slightly over 300 points.

However, in a recent forum posting, Ken noted that a person who scored 305 points at the beginning of November earned $0.43, and at the end of November earned $0.52, a 20% increase!

BUT, if you earned 300 points, you'd expect to earn $0.72 which is $0.20 more than actually being paid back. That represents a 27.78% underestimate.

Translating this to a monthly payback, I expect those who paid $24 for a monthly ad and earned 300 points to take a $6.00 LOSS and receive only $18 back.

I know that cornyman, Ken, and others have all agreed with me in saying last month that advertisers would not receive full earning potential during this transitional month of November.

But I'm not sure that folks who pay the full $24 next month will receive their money back either!

Why? Because if you have the opportunity to click on many of the Adgitize ads now in the system, you will see that many of these are brand new. Some have very little content, and don't even display Adgitize ads.

What this means is that old advertisers pulled out. And, five dollars of the new money from the new advertisers is going out of the system to pay affiliate commissions to the member who recruited them. This means that instead of $24 being contributed into the system, only $19 is actually going back.

So, my conclusion is that most advertisers will not earn their full $24 back again next month. Instead, they will only earn somewhere between $19-$22 in December.

As  a result, I will sit on the sidelines again next month, click on 101 ads, and read the member comments, complaints, worries, and praises.

I am confident that as we shake through this rough process, earnings will stabilize once again, perhaps in January 2010.

Unfortunately, at this time, I do not think that Adgitize or other members thought they'd all be losing money this month. Now is the time to think about next month, and question whether Advertisers will receive their full $24 ad costs back month. I don't think so.



  1. Hi JL,

    we will earn 24$ if we score 400+ points at the moment (i earned with a point range from 450 - 470 since 21st November 80 Cents and more, on 26th even 97 Cents!). My overall earnings are until 26th November 19.45 $, i believe i won't earn the 24$ until 30th November, but this was my belief already since Adgitize announced the price hike.

    To achieve 300 points you have to be usually an advertiser, if i won't advertise my ad/page view points will be reduced by 50% (as advertisers they get doubled!). I would loose 80 points from this and 100 advertiser points which gives me afterward a maximum of 290 points (or less as i don't get 80 "additional" visitors from Adgitize).

    Ken's earning prediction have underestimated that 10-20% of the advertisers my stop their ad. Therefore these members will drop from the 300-500 point range down to 200 - 3x0 points. If we have more in this tier, the overall earnings for more than 200 and 300 points can't rise so fast.The earnings in the 400 point tier will look slightly brighter as there are less advertisers, so join us! :)

    Ken also wrote today that 74 ads have to be renewed until 2nd December (from the existing 177 ads). It all depends now on these advertisers how much we will earn in December, but i'm sure i can get back my 24$ in December (as i will get already this month around 22+$) and with me many other active members, too.

    Cornyman's Money-Blog - Adgitize statistic for November

  2. I'm always hoping to earn my money back through other means (adsense, etc). I'm just not willing to do all the dropping necessary to get the points.

  3. Hi JL,

    I would like share my experience in Adgitize. I am normally achieving 500 point a day with one ad running. I am getting $0.98 - $1.06 per day for 500 point.

    In my calculation, i just spend $24 and get around $30 in the end.

    Previously, I got $13 for November payment.

    As Ken wrote me that we can have more than one account in adgitize, means that we can earn more from adgitize.

    Let say that you have 5 blog, you got $6 each per month. you will get $30 in total per month...

    How do you calculate if you have 20 blog...?

  4. @Bachrum:

    The more accounts you have the more you have to click... if you have 5 accounts, you have to click for each account 50 ads. How long does this take usually 20 - 30 minutes?

    And with 20 blogs you have to click 1.000 ads per day to achieve 100 click points for each account.

    As the ad/page views of a combined account are higher, you would earn less money in each account. If i look at my numbers of my four blogs i would say that my points would be between 400 and 430 (150 - 300 visitors) points and no more 470 points. This reduces my earnings already by 5 to 12 cents for each blog (per month 1,50 - 4,80 $). It would be still a small profit (1 or 2 $ more than with a combined account) but not worth the time clicking.


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