AlertPayPro has been sold to Harrolds Media...
AlienTrust has also been sold, quite likely to the same company!
So what?!

Here's our 2 cent's worth....

These two events will almost certainly forever change the face of the autosurf industry.

Why? Principally because the current model simply isn't working.. It cannot work, It is simply built on an unsound business model! Below is a portion of the message sent to AlertPayPro members within the last 24 hours:

The first topic to address, every current autosurf business model is flawed. Having a set percentage for affiliate earnings is this flaw. Unless autosurfs correct this flaw they will fail. As you may have noticed the maximum lifespan of an autosurf is approx 6 months, this is because paying a set percentage will cause the autosurf to instantly run in the red upon opening its doors. Selling a $5 advertising package will result in the owner paying $7.50 back. A $2.50 in the red from the first sale. A company can not operate in the red for long especially a company which sells their first item and is instantly in the red. Unless the company itself is making money it will eventually consume itself. Autosurfing could be the next major form of advertising for brand name companies. The potential is huge if the industry changes to a true affiliate and advertising network.

We largely agree with the above statement except that it ignores the claim, made by many pay4surfs, that they have external sources of funding. Harrolds Media make no secret that the reason that they are actually paying for surfing sites admittedly in trouble is that they want access to the membership base with money to spend. That IS the value of the surfing site and SOME (admittedly very few), have found a way to parlay that base into positive cashflow territory. StudioTraffic was the frontrunner in this area. Even though it eventually failed, it was due to poor decisions and management errors, NOT a flawed business model. Let's not forget that it ran for well over two years (4X the six months quoted by Harrolds)

What is for sure is that this revelation makes clear how tenuous the position of ALL existing autosurfs really is. Even those that genuinely have external funding sources are still dependent on new ongoing business (spends) for their very survival.

The new owners go on to explain how they have a NEW model that is superior to the old and will be the saviour of the industry:

How an autosurf should be run:
1. Take the amount of advertising dollars from the previous day. Divide that total among the number of advertising packages in circulation (subtract 5% for the administration.) That total will give the value of each advertising packages for that days surfing. ie. $10000 in advertising purchases comes in on a given day. There are currently 9000 advertising packages in circulation. $10000 divided by 9000 = $1.11 - 5% = $1.06 per advertising package. This is what each affiliate/advertiser will earn per advertising package that they own for surfing that day. So if an affiliate owns 1 advertising package they would have earned $1.06 for surfing that day. If they owned 10 advertising packages they would have earned $1.06 X 10 = $10.60 for surfing that day.

2. If an advertising package has a number of days limit then you may earn too much or too little by the time it expires. So advertising packages must have a dollar amount as the expiration date. Each advertising package will expire only after you have earned $7.50 from the $5.00 advertising package. Each individual advertising package will remain active until it has earned $2.50 PROFIT.

Harrolds Media is very magnanimously offering to single-handedly save the ENTIRE industry :

AlertPayPro is now under this new earnings system. This may take us up to three weeks to complete, we estimate much less time but we will not cross ourselves as the previous managment has by giving a date and not meeting it. We have also purchased another (most consider #1) autosurf and will be implementing the new model on that one as well. While we are willing to help other owners move/transition to the new system, we will not answer queries regarding this. Once all is completed on both of the new sites we have acquired we will then offer the new system on the open market.

Take notes, the autosurf industry is changing.

Harrolds Media Inc.,

To say that this message has stirred up a hornet's nest in various forums is to put things mildly. Pandora's box has definitely been opened. Here is a quote from Lance Barron, the owner of NowDollar, who has been implicated by some in nefarious ways of being a key participant in Harrolds Media:

#1. I do not have anything to do with the operations of Harrolds Media INC. However, I do know the owner and have visited with him several time by phone. Our programming staff has also worked very close with his staff in development of a revolutionary advertising script.

#2. We have not missed a pay day in the 5+ months we have been in operation.

#3. The purchase of the NowDollar Program: We were in talks with Harrolds Media INC. about the purchase of all rights to the NowDollar Program. The mission of Harolds Media INC. was to purchase surf programs that were struggling and implement a business model that is profitable. Is short, they were looking to try and save the surfing industry. Because of the events of last night and today, Harrolds Media INC. is now backing away from this mission. I reviewed the business model, and it is sound. We will be adding this business model to our program in the future.

It is too early to say how this will all play out. It IS clear that thunderclouds are forming and there will be fewer players left standing when it is all over. There was never a better time to re-evaluate YOUR personal position in all this. You might want to examine some of the options that are NOT autosurf related

For our part, we are not ready to dismiss the ENTIRE industry! There is one glaring problem with this new scheme! It doesn't even begin to address the problem of being totally dependent on new incoming funds for outgoing payments. Sure, it does mean that programs will no longer have to pay out more than they take in, but most of them don't do this anyway, since you can't get blood from a stone and most admins do not put their own funds at risk. This is, in fact, the main reason that so many programs are stalled right now...

It does also mean that rates of return will likely be reduced. The problem will likely be compounded for existing programs like APP, AT and ND because members are not going to put in new money until things start to happen. Things won't start to happen until existing members put more money in....

As always, we'll keep you updated on events as they unfold further


P.S. Added 2006-07-27

Well, it seems that 'too much negativity' frightened Harrolds Media away. In a public apology, they retracted their offer to singlehandely save the autosurf industry! .

It seems that AlertPayPro and NowDollar are no longer on their shopping list............