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 |
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.
JL..................