Iggy's Response to WHERE'S THE MONEY COMING FROM Question

Discussion in 'ASD - Ad Surf Daily' started by iggyigette, Jul 17, 2008.

  1. iggyigette

    iggyigette New Member

    From a pure mathematical formula, for every $1 dollar Ad Package that is Purchased, ASD promises to pay back $1.25 cents.


    In order for ASD to pay back $1.25, it needs to take in Gross Revenue $2.50 (since it's formula is to pay out 50% of Gross Revenue).


    So...for every $1 that ASD takes in, it needs $2.50 to pay back that $1 of Ad Purchase.


    That is the simple Balance Sheet of Assets vs Liability.


    That is A pure straightfoward mathematical formula.

    The Question is: HOW THE HECK IS ASD GOING TO COME UP WITH $2.50 if it is only collecting $1 ??


    The answer to this lies not in math, but in human behavior and ASD's control of the Cash Out Pipelines...


    The Question "Where's the $2.50 coming from" is based on several false assumptions:

    1. It assumes that ASD needs to come up with ALL the money IMMEDIATELY.

    2. It assumes that EVERY ASD MEMBER is CASHING OUT 100% OF THEIR CASH BALANCE EVERY DAY UNTIL THEY ARE PAID 125% of their Ad Packages.


    IF BOTH ASSUMPTIONS are correct, then the ASD Bashers are Correct...ASD probably would not have the money to pay out..and would go bankrupt...


    BUT...The questions of WHERE'S THE MONEY COMING FROM could be be applied to any financial institution's circumstances. For Example:


    IF EVERY member of Bank of America ALL decided to drop by Bank of America and WITHDRAW ALL THEIR CASH FROM THEIR BANK OF AMERICA ACCOUNTS on the SAME DAY....what's the likelihood that Bank of America would have available Cash in their vaults to "CASH OUT" EVERY MEMBER on the same day? Chances are that Bank of America would RUN OUT of cash if they had to Cash out EVERY MEMBER AT THE SAME TIME IMMEDIATELY...and declare bankruptcy...


    The same Questions and false assumptions asked of ASD is no different of a scenario if applied to Bank of America or any other bank.


    What sustains ASD financially is straightfoward:


    1. Control of the Cash Out Pipelines by controlling Rebate Percentages.

    2. Human Behavior: not every member Cashes out 100% of their daily rebates everyday.

    Let's Take Point # 1:


    Control of Cash Out Pipeline: While the ASD MONEY POT GROWS EXPONENTIALLY Because Ad Purchases are deposited 100% FULL VALUE into the ASD ACCOUNT FUND...the Pipeline to the Cash Out Account is VERY SMALL: 1% weekdays and 0.5% weekends. It would take around 140s (something like that) days to fully back out 125% of the MONEY POT. That is a full 4-5 months...AT WHICH TIME THEY HAVE A FEW RALLIES in between to INCREASE the size of the MONEY POT...while the cash out pipeline remains small...


    CONCLUSION TO POINT # 1 - WHILE THE MONEY POT GROWS LARGER with new members money, current members daily upgrades, and the Regional Rallies...the pipeline remains at fixed 1% weekdays (0.5% weekends) at ASD's discretion and control.


    To keep the Rebate Program going, ASD DOES NOT need to come up with the $2.50 for every dollar it collects, it just need to have cash available for the 1 PENNY that is paid out on weekdays per Ad Package ($1). To survive ASD ONLY need to have Cash available for the Daily Cash Flow...NOT THE TOTAL LIABILITY OWED.


    That concept is not much different from how your local bank function - banks don't have 100% of every members Cash Stocked away in each bank Vault...

    More importantly, Let's discuss Point # 2: HUMAN BEHAVIOR.


    What is the likelihood that every ASD member Cashes out 100% of their daily rebates every day?


    Even if an ASD member has 100,000 Ad Packages (most of the folks in my ASD core group are at this level), what the likelihood that this person would cash out 100% of their Daily Rebates? The answer is VERY LOW...unless they want to see their Ad Packages Decline, their Rebates Decline, and Close Shop and go home in 140 days...This is the Human Behavior Factor...


    Of the number of ASD members you know either in your Upline or Downline, what percentage of them is Cashing Out 100% of their Daily Cash Rebates Everyday?

    And What Percentage of them are Upgrading the Bulk of their Cash BACK into ASD's CASH FUND?

    I would venture to guess that THE MAJORITY of ASD members are UPgrading most of their Cash Accounts to Build their Ad Package Portfolio.


    What does this mean to ASD?


    The Actual Pipeline of Cash Out becomes EVEN SMALLER allowing ASD to keep the ASD CASH POT larger....


    So...assume that an ASD member is following the 80/20 Rule - Cashing out 20% and Upgrading 80%...


    Whereas I have shown that for every $1 ASD receives it only needs enough cash to pay out ONE CENT PER WEEKDAY (1%)...IN REALITY ASD ONLY NEEDS TO PAY OUT 0.2 CENT SINCE MOST MEMBERS ARE UPGRADING EITHER 100% OR AT LEAST 80% OF THEIR DAILY CASH OUTS....

    SO...for every ONE DOLLAR that ASD COLLECTS:

    ASD's Financial Liability on a DAILY BASIS to keep the Rebate Program Afloat is NOT $2.50 for each Dollar it collects...

    It's daily financial liability is NOT EVEN ONE CENT (1%)...

    IT IS MORE REALISTICALLY 0.2 CENTS - OR 20% OF ONE CENT required to keep the Rebate Program Afloat if we take into account real life human behavior...not just a mathematical formula of "WHERE'S THE MONEY...ALL THE MONEY ALL AT ONCE..."


    SO DO YOU THINK ASD COULD HANDLE GIVING OUT 0.2 CENTS DAILY FOR EACH DOLLAR IT COLLECTS?


    The ASD EXIT PLAN IS VERY SIMPLE....Gather enough momentum of membership growth through the rebate program ("loss leader")...continue to attract Large Partners such as GreenBackStreet.com to generate Serious Revenues for ASD...and at some point when ASD attracts sufficient Large Corporate Sponsors generating adequate revenue, ASD may modify and morph its rebate program into something different...or get rid of it completely...

    The Rebate Program is simply a "Loss Leader" Strategy.

    A "Loss Leader" is when a product or service is sold at a very low price or "at a loss" for the purpose of attracting customers to a "retail store" - in this instance "the service" is the Rebate Program at a Loss and The Customers are the Large Corporations that will bring in $$ to advertise to ASD members.

    Could ASD Fail in it's Mission? YES. Could it succeed? YES.

    Need more financial education?
     
  2. EnjoyingItAll

    EnjoyingItAll New Member

    Iggy - GREAT post - but go to sleep now!! I'm on Maui time so it's not so late. Great steak coming up soon for you too!!

    Aloha! and Mahalo!!
     
  3. EnjoyingItAll

    EnjoyingItAll New Member

    Iggy - GREAT post - but go to sleep now!! I'm on Maui time so it's not so late. Great steak coming up soon for you too!!

    Aloha! and Mahalo!!
     
  4. logicalusa

    logicalusa New Member

    Great post iggy. Ever since the monetary system dropped the gold standard, in reality banks have but a small percentage of the total monies they manage.

    What would happen if customers were to try to withdraw all their money from ANY bank all at once? Like iggyigette said....they would collapse and go bankrupt instantly.

    Here's the big picture guys. When the membership reaches into the hundreds of thousands (120k as of today), it will be very easy to monetize that many eyeballs. There's close to 1.5 BILLION people using the internet these days....120,000 is nothing. The potential is HUGE.

    With as much of the advertising dollars moving onto the internet, ASD will be sitting pretty if they play their cards right.
     
  5. luvtravel

    luvtravel New Member

    That's exactly why I said dont let a bunch of bashers, whiners and complainers control YOUR financial future!!

    All the bashers, whiners and complainers are doing are guaranteeing that they will push your "fear" button
    and there will be a run on ASD and everyone will pull out their money

    DON'T give in to the bashers!

    You knew what you were doing when you got into this
    and with the possibility of financial rewards ahead
    stick with it
    give it a chance
    dont give in to the bashers
    cause the only ones that will win will be the bashers who are competitors!!!!
     
  6. Vaussie

    Vaussie New Member

    Igg - Can I please have your permission to print this! This is brilliant! Nicely summarized!

    Cheers!
    Brenda
     
  7. Investigator

    Investigator New Member

    Although IGGY's post makes sense to a point there is the factor that he/she has overlooked.

    1. Iggy does not actually know how many people are cashing out on a daily bases since ASD has failed to reveal that info and therefore the calculations are incorrect.

    2. The number of people that have taken the time to post about not receiving their cashouts are small compared to those that have failed to post at all concerning 2 months or more waiting period.

    All the BASHERS that have posted concerning how and why the system will not work have used the information supplied by ASD that was posted on their respective sites.

    Therefore, the information that IGGY is posting and how he or she came to that conclusion is not valid and totally incorrect and lacks substance.

    Disclaimer:
    The opinions expressed in this post are those of the poster and should not be determined to be other than for educational purposes. Links to other sites, Public Information and or other information posted in here are not necessarily those of this poster or other posters.

    My right to post information is protected under the constitutional rights for freedom. Any use of the collective descriptions and shared knowledge from any of my posts are at the sole discretion of the reader.
     
  8. Caterina

    Caterina New Member

    Investigator: 2. The number of people that have taken the time to post about not receiving their cashouts are small compared to those that have failed to post at all concerning 2 months or more waiting period.

    Mr. Investigator.......your support for THAT statement comes from WHERE?

    Your agenda is clear as a bell.....

    Iggy, I nominate you for Surfer of the Month.....
     
  9. Caterina

    Caterina New Member

    Sorry - double post.....
     
  10. vikingfan

    vikingfan New Member

    Iggy,
    Great post! ASD will be around a long time. Also, the bashers out there always under estimate the power of this machine and ADDITIONAL revenue sources that are and will be available. Andy has a plan and he will continue to find additional revenue sources. It's always funny to hear the bashers try to predict the future earnings of the company. Most of them have no business sense whatsoever.

    Investigator, your post is the one lacking substance. As far as some of the clerical issues you talk about ASD knows this and is doing EVERYTHING they can to take care of them. Just use a little COMMON SENSE. They have 80,000 new members. Just a month ago they only had 12 customer service people. They are adding/training new people daily. The problems are obviously not intentional and are getting resolved.
     
  11. iggyigette

    iggyigette New Member

    Anyone is welcome to copy and paste my post...there will be no lawyers running after you or Don Peterson chasing this post...

    By the way, I don't have a Math Degree...had to take calculus twice and pre-algebra twice....

    Disclaimer:
    What's for breakfast?
     
  12. vikingfan

    vikingfan New Member

    Iggy,
    My downline members are in ASD to build wealth. As to my group, on average, 90% of cash out money is going to buy more ad packages. The results from compounding ad packs is too good to pass up. Ad packs expire and we don't want to be "out of the game" so to speak, in a few months.

    Also, our other reasoning is that we feel with all the new money coming in and the ridiculous growth this company is experiencing it is a good time to build our base. We'll see where things are in a few months and adjust on the fly. Once our base is built we will be taking a larger percentage out.
     
  13. asdabq

    asdabq New Member

    iggyigette:
    So...for every $1 that ASD takes in, it needs $2.50 to pay back that $1 of Ad Purchase.

    Iggy,

    I believe they only need take in $0.50 not $2.50 as stated.

    This is because they are only paying you $0.25 (earned rebate) per package however long it takes to get to 125%, ~4-5 months as you have stated. Considering that they already have your dollar, they only have to pay you $0.25 of $1.25.

    The only reason I comment is because in my mind, it is a lot easier to come up with $0.50/dollar then $2.50/dollar, thus lending itself to a more sustainable model and longer company longevity.

    The only wrench in the works is the 100% match. In that case they do in fact need to come with $1.25/dollar. Loss leader or not, that is a sore point that is hard to swallow! At some point, they will have to reduce this for themselves to stay in business.

    Would just like to see ASD around for some time to come. If they stay away from 100% matches, they could indeed be around for some time to come.

    No one wants to hear this, but that 100% is crazy math! I got 25% on my 500 packages, and feel it is very reasonable and generous. This alone without any reinvestment will produce another 781 packages or $$.

    I would rather see a reduced match then have it all end abruptly! Then, it's simply a question of WHEN and not IF one will see a return on their ad packages.

    Longevity is King!

    Please feel free to correct me!

    Tom
     
  14. iggyigette

    iggyigette New Member

    asdabq: I believe they only need take in $0.50 not $2.50 as stated.

    This is because they are only paying you $0.25 (earned rebate) per package however long it takes to get to 125%, ~4-5 months as you have stated. Considering that they already have your dollar, they only have to pay you $0.25 of $1.25.

    Hi Tom!

    ASD Pays 50% of Gross Collected Revenue back to members. So in order to pay you back $1.25...they would have to Collect Total Revenue of $2.50 in order to meet their Business model of paying out 50% of Gross.

    Otherwise in your formula they would break their 50% payback model and payback more than 50% of their Revenue.
     
  15. logicalusa

    logicalusa New Member

    Caterina: Mr. Investigator.......your support for THAT statement comes from WHERE?

    Your agenda is clear as a bell.....

    His support to that statement comes from out of his a..genda.

    And yes, his agenda is clear as a a bell. And after spewing his garbage for days he now has a little disclaimer at the end of his posts. [​IMG]
     
  16. logicalusa

    logicalusa New Member

    iggyigette: ASD Pays 50% of Gross Collected Revenue back to members. So in order to pay you back $1.25...they would have to Collect Total Revenue of $2.50 in order to meet their Business model of paying out 50% of Gross.

    Well, we don't really know the exact formula used to factor the 25% in the end as the rebates are paid daily and spread out over a period of time.

    In simple math terms, you'd be correct, but I think it's a more complex model than that.
     
  17. Vaussie

    Vaussie New Member

    Iggy... good to see you're keeping up your strength!

    Ivestigator... thanks for your concern regarding our well being with regards to ASD... you've made your point and you are welcome to move on at any time!

    I'd personally prefer that ANTI-ASDers take their negativity elsewhere! I'm truly tired of you people puking in my Cheerios! (Sorry Iggy if you had Cheerios for brekky!) We are aware of the risks and choose to remain positive and continue with our persuit!

    Good luck in your future endeavors! Please leave us alone now.

    HEY - Great email to the membership from Andy! I'm more excited than ever! I truly feel sorry for those who cannot see his vision! Including my personal friends who may think I'm nuts!

    Hugs to PRO ASDers all around - the world has far too little positive caring energy!

    Cheers!
    Brenda
     
  18. opendomain

    opendomain New Member

    You'll have to forgive my ignorance on ASD i've been gone for about a month and missed the boat I guess.

    But let me get this straight.
    You're saying that ASD is going to collect 1 dollar and then pay 2.50 back on that dollar? Am i missing something? Doesn't that create a perpetual float....which is not very stable in the long run?

    ASD to the best of my knowledge is not a bank, i'm just a little taken back by the enthusiams for which you're saying it's an ok business plan to surive on an ever growing float.

    What am i missing?
     
  19. Investigator

    Investigator New Member

    I think I'll stay since I do have 50,000.00 in ad packages and this is a free country. By the way Andy said stir everyone up so that more would join. So, I guess I have accomplished just that.

    have a nice day and keep the money rolling in......
     
  20. iggyigette

    iggyigette New Member

    Investigator: I think I'll stay since I do have 50,000.00 in ad packages and this is a free country. By the way Andy said stir everyone up so that more would join. So, I guess I have accomplished just that.

    Hehe!!! You're welcome here in my books Investigator! Those who have more at stake in this (aka 50K) have more due diligence to do because there is certainly more potential to lose. (I'm well over 100K from both sites combined).
     

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