Monday, May 30, 2005

He's baaack!

So yes, the answer is: I am still blogging. Wow, my one and only regular reader: 9race. Please visit her site. It makes me all warm and fuzzy inside to give back to comments.

First off, Mary Rust has a website that you can visit. She is a regular member of the HCW forums and very cool. But she has this issue to which she is trying to draw attention. Quite a complicated story, but you can learn about some of it at her website.

Next, noni was asking me about, whether it was a scam. Well, some of these things are scams, others aren't. AllAdvantage definitely was not a scam (remember them?). But that company died because of major flaws in its business model. The revenue model could not scale to support the cost structure. Now whether StudioTraffic is just another scam, or an actual legit business that doesn't have a sound business model, I don't know. I did find an interesting forum thread about the site. The number of poorly formed arguments and ad hominem attacks in the thread is appalling. Some people shouldn't be allowed to post things on the Internet. ;) But the craziest thing I find about these ad schemes is that a company would have to be really stupid to advertise through them. The only thing the user base has in common is the desire to make easy money, you're not targeting your advertising at all, and you could well be even targeting your marketing at the wrong market segments. Your ROI on your marketing costs would most likely be negative. Well, their loss. And having attended a few pyramid type marketing things for the sake of a few friends, I think I can safely say that most of them have a cash flow problem. The cash flow analysis is a bit complicated, but they essentially all suffer from the same problem that killed AllAdvantage. Depending on the product, the pyramid scheme can either make the founder of the pyramid very rich or bankrupt. But those who are lower down on the pyramid definitely suffer from the cash flow issue no matter what happens, especially as the pyramid grows and saturates the market. If you ever consider joining one of these pyramid schemes, please do the proper financial and business analysis before joining. And if you're not capable of doing the analysis, get a friend who is capable to do it for you. Thanks. And whatever happened to putting in an honest day's work for an honest day's pay? The next time I hear the word residual income, I will scream. People who have to join pyramid schemes in order to make residual income do not deserve to be called entrepreneurs.

OK, third item. I'm convocating. Maybe I should have put this first? Bleh, I'll write a new post dedicated to this topic.

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