AdGateWorld Joins AVG, BAS In No-Pay Surf Lineup

Members of AdGateWorld (AGW) are complaining today that the surf is not paying rebates. AGW now joins AdViewGlobal (AVG) and BizAdSplash (BAS) in the nonpaying lineup.

All three surfs launched in the aftermath of the seizure of tens of millions of dollars last year from Florida-based AdSurfDaily Inc., amid allegations of wire fraud, money-laundering, engaging in the sale of unregistered securities and operating a Ponzi scheme. The surfs quickly became known as ASD clones, with promoters that touted offshore locations as a safety buffer between participants and U.S.-based regulators and law-enforcement agencies.

At one point, the acronym ASD appeared in the Terms of Service on the AGW website.

In recent weeks, AGW said it had new owners in the Middle East. Those reports could not be confirmed.

Members today, however, said that AGW announced yesterday it had no money to pay rebates this week.

The surf did announce that it would provide members a new splash page to create interest in the program, members said. The idea was to create an “AdGateWorld awareness campaign.”

AGW recently took bonuses away from members, members said. Yesterday’s announcement was simply signed “AdGateworld.”

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3 Responses to “AdGateWorld Joins AVG, BAS In No-Pay Surf Lineup”

  1. I’m not sure if this is the same e-mail you saw Patrick, I found this on one of Faith Sloan’s flog blogs. I found the honesty it expressed regarding the need for fresh cash inflows to be remarkable:

    “Hello,

    This email will address the current rebate issue and the prudent accounting guidelines that must be met moving forward. The prior management team occasionally ran the advertising incentive program in the deficit. Essentially reserves were ‘tapped’ when necessary to provide daily/weekly rebates and looked at as a ‘promotional expense’. Our management group and advisors will NOT continue this exercise. Reasonable fiscal procedures using a common sense approach must be strictly adhered too. The addition of the AdGate Network to our holdings is considered to be a long term commitment to the fledgling social advertising industry. The continuation of the ground breaking rebate/profit share logic is not in question.

    However, our accounting staff has clearly illustrated the difference between new advertising revenues and rollover revenues. While the ‘burden’ of the prior bonus Ad Packs have been substantially decreased, it is important for members to understand that the social advertising model ONLY works with a steady and consistent flow of NEW revenue. The growth rate over the last six weeks has been minimal. What is the reason for this? Possibly a summer month slowdown or a general complacency regarding the ‘social’ side of this community. Recruiting is 100% optional in this community but NEW revenues drive the rebate program. Do some of the members believe that the revenues just happen magically? It certainly seems that way at times based on communications.

    This week new funds were almost non-existent and auto roll- over Ad Pack purchases were slim. Outside focus groups and successful marketing experts have been consulted over the last few days. The preliminary results indicate a HUGE interest in the AdGate concept as an online marketing extension to existing efforts and an even bigger audience for the business opportunity. This reinforces our plan to expand company efforts and continue to seek new community members that have enthusiasm and energy. Each current member can decide for themselves what level of commitment to put forth.

    In light of the lack of new funds meeting a reasonable ‘rebate threshold’ we cannot provide a weekly rebate on Monday morning. The nominal money that came in MUST be used to meet responsibilities of withdrawals that have been requested over the last ten days. Here are numbers:

    As part of our management team evaluation we have retained outside marketing advisors to assist in a AdGateWorld awareness campaign. Do you want to be part of the ‘reboot’ that is taking place? Postings on forums, article sites and classifieds are completely free. Spread the word and help us get to our 14% weekly rebate cap quickly. We can all do our part.
    Our web team is going to help each of us in a big way.

    *
    FREE splash pages that can be downloaded and coded with your affiliate link will be available very soon.
    *
    A weekly marketing strategy tip email will be published and given to those that want to take part in the SOCIAL advertising opportunity. Together we can forge a stronger base of advertisers and members.

    Thank You,

    AdGateworld”

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  2. Hi GlimDropper,

    GlimDropper: I’m not sure if this is the same e-mail you saw Patrick,

    Yes, that’s the AGW message I saw. It impressed me as a rather overblown way to say rebates are gone because of the lack of revenue, while sort of saying the purported new owners won’t be soft when it comes to making tough decisions.

    But does anybody know if the company actually changed hands?

    From the tone of this note to members, the purported new owners seem to suggest they bought a dog from the previous owners and that the current crop of members have too many expectations and are too lazy.

    I’ve seen some puzzling notes from surfs before, but this one was was extra-puzzling and seemed to go extra-heavy on marketing jargon and catch phrases, almost all of which came off as stilted.

    For heaven’s sake, they are talking about a surf — and everybody knows they are talking about a surf, including the promoters who sold it out of the gate as an offshore surf that didn’t have ASD’s problems and effectively neutered U.S. regulators.

    Now, revenue purportedly has dried up despite all the purported offshore advantages and they’re going to solve the problem with “focus groups” — and “outside” focus groups at that.

    Outside focus groups? Outside marketing advisors to assist in a AdGateWorld awareness campaign? Prudent accounting guidelines? Plan to expand company efforts and continue to seek new community members that have enthusiasm and energy? Ground breaking rebate/profit share logic?

    Did they actually say, “Ground breaking rebate/profit share logic?”

    Patrick

    P.S. I’ve also read the AGW was offered for sale to the members prior to the purported new ownership group taking over.

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