Here is an update on distributions to Members:
Since
AGLOCO started its Viewbar in June, we have been working to deliver an early money distribution plan that will be work for both Members and
AGLOCO at this time. It was decided to start with the AGLOCO Monthly Residual Payments. These are small monthly payments which will be made for hours earned each month and paid monthly for 10 years. The following rates have been set (amounts are expressed in US currency):
• June $0.48 per hour - ($0.0040 per month for 120 months)
• July $0.42 per hour - ($0.0035 per month for 120 months)
• August $0.54 per hour - ($0.0045 per month for 120 months)
AGLOCO Monthly Residual Payments become payable when declared such by AGLOCO. We are working to add the accounting feature to the account page to show this to each Member, but that will not be available until after all the Ask.com features have been integrated.
In addition to the
AGLOCO Monthly Residual Payments hours may become eligible for Bonus Payments. If
AGLOCO exceeds expectations and builds funds in excess of reserves needed it may be possible to make
AGLOCO Bonus Payments. We do not expect this to happen anytime in the near future. The details on the Bonus Payments and the Monthly Residual payments will be placed on the account page along with the accounting display.
1. How is
AGLOCO doing financially?
As you know
AGLOCO launched stating it would make Member distributions when it was profitable. On this blog we said we would update you on the company results at the end of the summer. During the last three months, June, July and August,
AGLOCO lost slightly more than $100,000. (As you are aware the Development team is still working for free. And also, the Development team and some of their friends are the source of the $100,000 so that AGLOCO can pay its bills.) The
AGLOCO losses are getting smaller each month and at this point, we anticipate the September loss will be $10,000 to $15,000.
2. Will checks for the
AGLOCO Monthly Residual Payments go out in October?
We would love to say definitely yes, but we can’t. So we will say Yes IF. The IF for the most part is how successful our Ask.com partnership is in generating revenue. As with most things in
AGLOCO, it will really depend on the Members. It is Member use of the Ask.com search function that will answer the question of distributions in October.
While Ask.com will also become the dominant supplier of our US and Canada ads, we believe that as a global company
AGLOCO currently will get the most revenue from the Ask.com search ads.
3. How will I get my money?
First
AGLOCO puts money into your account at AGLOCO which you will be able to see on your account page. At present, Members may ask that a check be sent to them.
AGLOCO will set up a couple of online payment systems like PayPal and will also set up an ACH system. If there is a cost to make the transfer, the Member will pay it – so that other Members do not have to bear that expense. A minimum for transferring money out will be set.
Since the account pages will not have the financial data available on them for several weeks, we will contact any Member who has earned over $100 to ask if they want a check now. (There are a number of you who get in this group very quickly).
4. Will I be able to sell my hours to other Members?
A number of requests have come from Members wanting to buy or sell hours. Currently
AGLOCO does not allow the transfer of hours.
AGLOCO is planning to change this and allow for Members to transfer hours. To do so it will be necessary for
AGLOCO to suspend any consideration of exchanging hours for
AGLOCO shares, otherwise trading hours would not be possible in some countries and would be too difficult (and expensive) for
AGLOCO to regulate. We would like Member feedback on this issue prior to implementing it, so please make comments on this post.
AGLOCO will have to add the technical ability to transfer hours to each Member’s account database before the ability to sell will be possible.
AGLOCO will probably limit transfers to at least 100 or more hours per transfer so that tracking this does not become a burden. If there is any cost to this, it will be borne by the Member doing the transfer so that all Members do not bear this cost.
5. How much will I be able to sell my hours for?
We anticipate that some Members will set up private exchanges or Members may use existing auction sites like eBay (assuming rules and escrows are met.) Therefore the price of hours will depend on the open market. And thus, the price is liable to fluctuate.
We know this is a lot of information in a small space, please ask any questions you have on this post and we will try to answer them
Thanks for all of your efforts for
AGLOCO.
The
AGLOCO Development Team
AGLOCO Official said,
September 28, 2007 @ 11:17 pm
Quick note on questions – The Monthly Residual Payment plan is our current plan - Depending how it works out we might shorten the time period. Also, we might add a current month bonus payment to increase the cash for the current hours. We feel that
AGLOCO should continue to be flexible so that it can respond to changes that will happen over time.
We looked at many other alternatives (including several that Members have suggested in their comments).
AGLOCO’s goal is to be a sustainable business. We felt this plan would reward the early users and yet still be sustainable. Suggestions like ‘borrow now’ were not pursued as we did not think them sustainable nor feasible.
While the Development team has continued to work for free, the Tech Team in Shanghai and Member Services Team in the Philippines are paid as well as the cost for servers, bandwidth maintenance etc. These are our main expenses at this point.
In order to be successful we will need for our Ask.com partnership to be successful as well. You are right to point out that at this time 100% of
AGLOCO’s revenue is through advertising. And the most profitable advertising is search advertising. So using the Viewbar Ask search is the best thing Members can do for
AGLOCO. Like all search advertising whether it is Google, Yahoo, MSN or Ask, search advertising is performance based. (Either on clicks or on sales.) And most advertisers measure real results (meaning sales). That is why it is against
AGLOCO rules to do excessive clicking. It would eventually make
AGLOCO a poor advertising location and
AGLOCO would loose all its advertisers
