Math?

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

  1. dbmaxx

    dbmaxx New Member

    okay, First-- I am not being negative. I just joined last week. I attended alot of the webroom trainings and Q&A and like what I hear. I don't like the website but we all seem to share that pain currently. hopefully this area will just be painful memory this time next week.

    I am not a mathematician so here's my question:

    If they are doing 100, 50 and 25% matches to the purchasers and their sponsors and giving 125% of that, is this really sustainable. I do realize they only rebate 50% of the daily intake. Also - I honestly do not see these other revenue streams being real strong -- at least not yet. Please let me know if you have info that will shed some light on what seems to be a pool that will eventually dry up.

    Thanks in advance --hope to meet you in Chicago!!
     
  2. LauraLicata

    LauraLicata New Member

    Hi dbmaxx,

    Since no one is responding to your question....I will. I have a Master's degree in math and I have no idea!

    Admittedly I haven't really sat down and played with numbers but I agree it seems difficult to sustain long term.

    I would venture to guess that may be a global feeling and people are careful to take out at least the money they put in when they can. I actually read that on a thread somewhere.

    Take care,

    Laura
     
  3. iggyigette

    iggyigette New Member

    I'll have an answer later on...right now I am hungry and need to eat
     
  4. iggyigette

    iggyigette New Member

    by the way...I don't have a master degree in math...I didn't even get a BS degree in college...
     
  5. vikingfan

    vikingfan New Member

    I think long term we will need additional outside revenue sources like greenbackstreet and corporate sponsorship to ensure sustainability well into the future. Andy has stated many times he wants 100,000 millionaires and several million members.
     
  6. onewebsite

    onewebsite New Member

    I have also thought about the numbers a lot and how they can give all of those great matches.
     
  7. logicalusa

    logicalusa New Member

    I think these numbers are just the beginning. I think the matching part is just temporary to attract the masses. 1% rebates are fantastic and should be enough. I wouldn't mind .5% as long as it helps the current model last longer.

    This is just the beginning. Once the numbers reach hundreds of thousands other opportunities will open up. It is VERY easy to monetize that many eyeballs with products, services, etc.

    At that point, advertisers will be signing up left and right, both corporate, small businesses and what I think is gonna be huge in the next few years....local.
     
  8. asd rocks

    asd rocks New Member

    I personally asked Andy about this and he assured me that it is their focus to continue to develop new ways to bring money into the company, not just from ad pak sales. They will always spice things up.

    The next day they were talking about the shopping universe which is now greenbackstreet--looks good.

    Also, many of us could use a new domain for our personal websites which can be purchased through ad surf daily, on the 3rd site we all surf and those purchases put money back into our pockets too.
     
  9. dbmaxx

    dbmaxx New Member

    Good stuff - thanks for all your responses. I do believe the matches are a loss leader and buy in to the fact that the money is not being pulled out all at once by the members.

    Bottom line -- No risk -no reward
     
  10. Vaussie

    Vaussie New Member

    iggyigette: I'll have an answer later on...right now I am hungry and need to eat

    You eat Iggy? I thought you were a machine!! LOL
     
  11. nkelly

    nkelly New Member

    logicalusa: I think these numbers are just the beginning. I think the matching part is just temporary to attract the masses. 1% rebates are fantastic and should be enough. I wouldn't mind .5% as long as it helps the current model last longer.
    It matters not what percentage they pay daily because the ad packs expire once 125% has been paid out. That could be daily, weekly, monthly or yearly but the bottom line is that ASD have to find the match money and the 25% bonus form somewhere eventually. With 100,000 millionaire ad packs around the numbers become mind boggling.
     
  12. raindrop2309

    raindrop2309 New Member

    Check out the new site.
    https://www.asdcashgenerator.com/
     
  13. alasycia

    alasycia New Member

    I take it that was a false alarm just to get us all hopping up and down!! LOL
     
  14. tmorrison

    tmorrison Member

    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.
     
  15. Kinglions175

    Kinglions175 New Member

    I've seen something like that posted on another forum. That is exactly whats going on. As long as A.S.D. keeps growing it will support itself just fine.
     
  16. iggyigette

    iggyigette New Member

    Nice Post. I would agree.
     
  17. tmorrison

    tmorrison Member

    THE ISSUE AND CONCERN I HAVE IS THIS:

    ASD SEEMS TO BE OVER-EXTENDING ITSELF BY MEANS OF THE "SERVICES (SUPPLY) IS NOT MEETING THE DEMAND"

    BUSINESS 101: SUPPLY & DEMAND

    THERE NEEDS TO BE A BALANCE...ASD SEEMS TO ONLY BE IN REACTIVE MODE THESE DAYS AND OBVIOUSLY WAS NOT PLANNING TRULY ON FUTURE GROWTH OTHER-WISE ALL THESE DELAYS AND SERVICE MELT-DOWN WOULD NOT BE OCCURRING.

    OFF-COURSE SOMEBODY WILL RESPOND TO THIS POST AND SAY THEY ARE MAKING THE NEEDED ADJUSTMENTS...

    MY RESPONSE WOULD BE: IT IS TIME THAT A MULTI-MILLION DOLLAR OPPORTUNITY START ACTING LIKE ONE...

    GROWING PAINS HAS TO BE A THING OF THE PAST ESPECIALLY NOW WHEN YOUR ALREADY ENTERING YOUR THIRD YEAR IN BUSINESS...
     
  18. iggyigette

    iggyigette New Member

    Giblinker: ASD SEEMS TO BE OVER-EXTENDING ITSELF BY MEANS OF THE "SERVICES (SUPPLY) IS NOT MEETING THE DEMAND"

    BUSINESS 101: SUPPLY & DEMAND

    Many here including myself would Agree and share in your Frustration.

    I believe the ASD site has probably been down more than it has been up in the last few weeks.

    Let me also share with you though a little perspective on this situation:

    ASD Cash Generator Launched in 2006.

    From 2006 until May of 2008 (2.5 years), ASD went from ZERO to 25,000 Members...Chugging Along...with no major issues of Supply Vs. Demand...

    I was member 25,XXX when I signed up in May 2008...

    Then Critical Mass Hit...

    May...June...July (NOW)....ASD exploded from 25,000 members to 100,000 members in less than 3 months...

    How would ANY COMPANY meet that kind of Demand vs Supply Disproportion in this short amount of time?

    I sit on the Executive Committee of a large corporation (over $100,000,000 annual gross revenue) and we have 800+ employees.

    When we make a decision to hire an employee for Customer Service, Accounting, or IT personel, it is a 6-8 week process from start to finish:

    1. Marketing Department puts up Job Opportunities Advertising to the Public (2 weeks typically to get job applications)
    2. Sorting out Resumes, Applications, and deciding who to interview...
    3. The Interview Process (another 1-2 weeks depending on when the applicant can schedule for an interview)
    4. New Employees often have to Give Notice to Quit their Jobs (another 2 weeks) unless they are Jobless.
    5. Orientation and Training for the Job Position - another 1-2 weeks

    You can add up these weeks and realistically it can take up from 6-8 weeks from start to finish to get a Trained Employee to Fill the Supply Gap.

    And consider that ASD has to Double their Customer Service Operations, Expand the Accounting Department, Hire more IT folks...and given less than 3 months for boost supply and catch up to 75,000 new "Demanding Members" - Supply won't humanly catch up with Demand in this short amount of time.

    Unless Andy and company are "packing their bags" and flying off to Panama with your Money during this time!
     
  19. tmorrison

    tmorrison Member

    iggyigette:

    I appreciate your perspective and reply, however I believe your $100,000,000 dollar operation didn't seem to have collapse during the necessary improvements, changes and upgrades.

    I am sure ASD is re-acting and making the necessary upgrades, but it seems that they need to always shut down the operation for a time period when doing so.

    Don't get me wrong...I am a proud ASD member...I just hope that ASD comes to a point where they have the technological advances that will not hinder progress in future...
     
  20. iggyigette

    iggyigette New Member

    Giblinker: I appreciate your perspective and reply, however I believe your $100,000,000 dollar operation didn't seem to have collapse during the necessary improvements, changes and upgrades.

    We grew incrementially...like 70 Million a year...80 Mill a year...90 mill a year...etc...

    We would Collapse if we went from 25,000 to 100,000 "clients" in 2.3 months!
     

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