Business Model For The Future
North Shore Media News - Business Model For The Future
Alientust.com owners have posted new news. Apparently they plan on switching their business model around, DRASTICALLY. I need more clarification, but it seems like you will only make 35% of your upgrade (now called ad spend) back. From the looks of it, you need to refer people in order to make real money, because you will get 35% of your referrals upgrade.
They might lose a lot of business. Atleast the plan of saving 20% of the upgrade for a stormpay fund to pay back victims.
Read the post here:
Business Model For The Future14. February 2006 @ 16:43
Good Afternoon Everyone,First of all let me apologize for not updating everyone over the past few days. All of us were out of town scouting convention space for the pending convention in November. We looked at some promising locations but nothing concrete as of yet.What I'd like to do today is talk a little bit about the StormPay issue and our plan moving forward to help correct some of the mistakes being made in the industry and what we're going to do to help legitimize the business model.Our attorney has advised us to do 3 things, number 1 contact all the federal agencies we can and file complaints about StormPay to ensure that we are part of the group doing likewise, and ask for a review of our company to ensure that we are indeed doing business legally, that process has already begun.2nd, to retain legal council in the state of Tennessee to assist with the expedition of our case against them.And number 3, watch and see what happens in the larger cases. Since 12DP is heavily involved with the legal aspect of the case taking a wait and see approach in regards to their case seems very logical and will give us a good foundation to build our case.I will not make any further comments about the status of our legal involvement because this would simply undermine our chances of a successful outcome. If you think for one second that StormPay doesn't have people reading these posts here and at all the other forums across the net you're crazy. We're not going to give away our strategy, and that's all I can say.The future of the AS industry.The 5 of us, Stephanie, Brian, Jenny, Melissa and myself spent a good deal of time this weekend discussing what has happened, what will happen and if there's anything we can do to change it, and we believe we can. There are however some undeniable truths that we all need to accept if we want the industry to survive.The AutoSurf as we knew it before is over, period. There's simply no way that we can recover the momentum, or boost the confidence enough to get back to where the industry was just a few short weeks ago. The days of 40% payouts are gone. No owner in their right mind would go back to that knowing what we know now, and seeing what has happened. No matter how hard you try to insulate yourself, you are always going to be at the mercy of whoever is running the payment system. Ultimately we can still surf for cash, BUT there needs to be a realistic system in place that can be supported long term, there needs to be a real cost for the product delivered, and the company needs to make a profit in order to stay in business. In the old business model, the majority of your earnings were predicated on simply paying you your own money back. I never really liked that system to be honest, I think it's silly that I have to surf for 10 days or whatever just to get my own money back. But the old system didn't rely heavily on commissions, they were more of an afterthought. Let's look at the reality of that scenario.On each sale the company is upside down by the amount of the plan ie: 40%, 20% or whatever, the cost of commissions, in our case it was 5%, and the cost of processing payments, which is substantial. In a normal week at SP we paid nearly 300,000 in fees.I don't care where the owner is investing, or what they are doing outside the auto-surf to make money, there's simply no way to create that type of return for the average AS business. This is the reason so many of them fail. Our model was always different from the very beginning, and allowing everyone to cashout every week and decide how much they wanted allowed us to have substantial reserves, usually more than what was paid out. So there's no way we would've collapsed in the short term, but looking long term, the business model simply doesn't stand up, UNLESS you diversify BIG TIME.So in looking at a way to allow folks to earn a living by surfing we needed to make a commitment to keeping the system WITHIN the means of each individual sale. To ensure that we are legal, and ensure we are within the boundaries of reality, we decided to create a business model that would have long term staying power, and be easy for other owners to implement as well without the need to have 20 programs running in order to support the autosurf business.Folks the industry is dying - we need to change the model. We will either lead the way, or fall by the wayside.As any business professional will tell you there is always a cost of doing business. You have to pay for tools you need to build a business and/or income. In the old ASC model there was no cost for your advertising. You got everything for free and then some. We need to get back to reality and get back to understanding that you build an income based on referring, not on surfing.Referrals are what fuel EVERY company on earth. Freestanding brick and mortar businesses, MLM business, Affiliate programs like Amazon, and so on. Even movies are referral based, you read a review in the paper, or your Aunt Sally says hey so and so was great go check it out.This IS the way businesses are built. You don't see any of these businesses giving away more money than they take in do you? Then why are we? This is the reason StormPay and others are screaming Ponzi. Whether the model is or not, is still open for debate, but we're creating a model that will not be included in that discussion.There will be a real cost for each ad pack you purchase, you will be able to re-coup a good percentage of that advertising in the form of a rebate for viewing the ads of other members, and you will earn explosive commissions because now we can pay commissions based on the sale made because the amount earned surfing is within the realm of reason.Here's how it will be set up at the beginning, and then the numbers will change accordingly once some of our obligations are met.Members who choose to purchase ad Ad Buy will earn 4.9% daily for 7 days. This equates to 35% of your Ad Buy. You will receive 35% commissions on Ad Buys purchased by your personally sponsored teammates. The company will retain 10%, and the remaining 20% will be allocated to the repayment fund to help repay all the members who were damaged by StormPay. Any and all funds retrieved through litigation will be allocated to this fund as well.Now I know folks that this is in no way as lucrative as what the industry was doing before, BUT, it is stable, smart, and can be sustained forever. No one is in over their head and everyone is getting paid according to what they produce, not what they have to through into the kitty.Folks the industry CAN survive and there can be a ton of great ASC sites on the net again, but the model HAS TO CHANGE!! We can no longer sit idly by as more and more scams come along and rob us of our money. This plan is THE plan that can help save the industry.Just as a note, the plan numbers will change once all funds are repaid to members, to 40%,40% and 20% for the company. We also plan on instituting bonuses and contests to be named later on, and there can be a wealth of other things added to the mix to really take this to the next level, but let's start here and see where it goes.We're going to be having a live conference tonight and as soon as I get the room ready I'll post the link here.I know many of you may decide to continue to work the high risk stuff, and may leave us, and that's fine, you have to do what's best for you. By the same token we must do what's best for us and the industry as a whole. As the number 2 site on the net we feel an obligation to create something that looks to the future and helps get the smaller ASC sites back in the game, big or small EVERY site out there is important, and as an industry we really need each other. So for those of you who are only interested in making a quick buck and running for the door, you'll need to look elsewhere. We're building a system that will last for many years to come and will be outside of the scrutiny of government regulation. Granted we may not take in the millions that we did before right away, but this program will be much more successful over the long haul because there is no outside funding required to make it work. Everything is paid for with the sales generated by the system itself, and isn't long term stability REALLY what we're all after?I hope to see you all on the conference tonight.
Vince Kronlein
Executive Director
North Shore Media
Alientust.com owners have posted new news. Apparently they plan on switching their business model around, DRASTICALLY. I need more clarification, but it seems like you will only make 35% of your upgrade (now called ad spend) back. From the looks of it, you need to refer people in order to make real money, because you will get 35% of your referrals upgrade.
They might lose a lot of business. Atleast the plan of saving 20% of the upgrade for a stormpay fund to pay back victims.
Read the post here:
Business Model For The Future14. February 2006 @ 16:43
Good Afternoon Everyone,First of all let me apologize for not updating everyone over the past few days. All of us were out of town scouting convention space for the pending convention in November. We looked at some promising locations but nothing concrete as of yet.What I'd like to do today is talk a little bit about the StormPay issue and our plan moving forward to help correct some of the mistakes being made in the industry and what we're going to do to help legitimize the business model.Our attorney has advised us to do 3 things, number 1 contact all the federal agencies we can and file complaints about StormPay to ensure that we are part of the group doing likewise, and ask for a review of our company to ensure that we are indeed doing business legally, that process has already begun.2nd, to retain legal council in the state of Tennessee to assist with the expedition of our case against them.And number 3, watch and see what happens in the larger cases. Since 12DP is heavily involved with the legal aspect of the case taking a wait and see approach in regards to their case seems very logical and will give us a good foundation to build our case.I will not make any further comments about the status of our legal involvement because this would simply undermine our chances of a successful outcome. If you think for one second that StormPay doesn't have people reading these posts here and at all the other forums across the net you're crazy. We're not going to give away our strategy, and that's all I can say.The future of the AS industry.The 5 of us, Stephanie, Brian, Jenny, Melissa and myself spent a good deal of time this weekend discussing what has happened, what will happen and if there's anything we can do to change it, and we believe we can. There are however some undeniable truths that we all need to accept if we want the industry to survive.The AutoSurf as we knew it before is over, period. There's simply no way that we can recover the momentum, or boost the confidence enough to get back to where the industry was just a few short weeks ago. The days of 40% payouts are gone. No owner in their right mind would go back to that knowing what we know now, and seeing what has happened. No matter how hard you try to insulate yourself, you are always going to be at the mercy of whoever is running the payment system. Ultimately we can still surf for cash, BUT there needs to be a realistic system in place that can be supported long term, there needs to be a real cost for the product delivered, and the company needs to make a profit in order to stay in business. In the old business model, the majority of your earnings were predicated on simply paying you your own money back. I never really liked that system to be honest, I think it's silly that I have to surf for 10 days or whatever just to get my own money back. But the old system didn't rely heavily on commissions, they were more of an afterthought. Let's look at the reality of that scenario.On each sale the company is upside down by the amount of the plan ie: 40%, 20% or whatever, the cost of commissions, in our case it was 5%, and the cost of processing payments, which is substantial. In a normal week at SP we paid nearly 300,000 in fees.I don't care where the owner is investing, or what they are doing outside the auto-surf to make money, there's simply no way to create that type of return for the average AS business. This is the reason so many of them fail. Our model was always different from the very beginning, and allowing everyone to cashout every week and decide how much they wanted allowed us to have substantial reserves, usually more than what was paid out. So there's no way we would've collapsed in the short term, but looking long term, the business model simply doesn't stand up, UNLESS you diversify BIG TIME.So in looking at a way to allow folks to earn a living by surfing we needed to make a commitment to keeping the system WITHIN the means of each individual sale. To ensure that we are legal, and ensure we are within the boundaries of reality, we decided to create a business model that would have long term staying power, and be easy for other owners to implement as well without the need to have 20 programs running in order to support the autosurf business.Folks the industry is dying - we need to change the model. We will either lead the way, or fall by the wayside.As any business professional will tell you there is always a cost of doing business. You have to pay for tools you need to build a business and/or income. In the old ASC model there was no cost for your advertising. You got everything for free and then some. We need to get back to reality and get back to understanding that you build an income based on referring, not on surfing.Referrals are what fuel EVERY company on earth. Freestanding brick and mortar businesses, MLM business, Affiliate programs like Amazon, and so on. Even movies are referral based, you read a review in the paper, or your Aunt Sally says hey so and so was great go check it out.This IS the way businesses are built. You don't see any of these businesses giving away more money than they take in do you? Then why are we? This is the reason StormPay and others are screaming Ponzi. Whether the model is or not, is still open for debate, but we're creating a model that will not be included in that discussion.There will be a real cost for each ad pack you purchase, you will be able to re-coup a good percentage of that advertising in the form of a rebate for viewing the ads of other members, and you will earn explosive commissions because now we can pay commissions based on the sale made because the amount earned surfing is within the realm of reason.Here's how it will be set up at the beginning, and then the numbers will change accordingly once some of our obligations are met.Members who choose to purchase ad Ad Buy will earn 4.9% daily for 7 days. This equates to 35% of your Ad Buy. You will receive 35% commissions on Ad Buys purchased by your personally sponsored teammates. The company will retain 10%, and the remaining 20% will be allocated to the repayment fund to help repay all the members who were damaged by StormPay. Any and all funds retrieved through litigation will be allocated to this fund as well.Now I know folks that this is in no way as lucrative as what the industry was doing before, BUT, it is stable, smart, and can be sustained forever. No one is in over their head and everyone is getting paid according to what they produce, not what they have to through into the kitty.Folks the industry CAN survive and there can be a ton of great ASC sites on the net again, but the model HAS TO CHANGE!! We can no longer sit idly by as more and more scams come along and rob us of our money. This plan is THE plan that can help save the industry.Just as a note, the plan numbers will change once all funds are repaid to members, to 40%,40% and 20% for the company. We also plan on instituting bonuses and contests to be named later on, and there can be a wealth of other things added to the mix to really take this to the next level, but let's start here and see where it goes.We're going to be having a live conference tonight and as soon as I get the room ready I'll post the link here.I know many of you may decide to continue to work the high risk stuff, and may leave us, and that's fine, you have to do what's best for you. By the same token we must do what's best for us and the industry as a whole. As the number 2 site on the net we feel an obligation to create something that looks to the future and helps get the smaller ASC sites back in the game, big or small EVERY site out there is important, and as an industry we really need each other. So for those of you who are only interested in making a quick buck and running for the door, you'll need to look elsewhere. We're building a system that will last for many years to come and will be outside of the scrutiny of government regulation. Granted we may not take in the millions that we did before right away, but this program will be much more successful over the long haul because there is no outside funding required to make it work. Everything is paid for with the sales generated by the system itself, and isn't long term stability REALLY what we're all after?I hope to see you all on the conference tonight.
Vince Kronlein
Executive Director
North Shore Media
posted by 4Newbies.com at 6:28 PM
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