Googles profit down by 50 %

I have been doing research on how a successful AGLOCO might affect the Internet.
I think it will be in various different ways… major ways. But one simple way of looking at AGLOCO’s impact is how it will move money around on the Internet search alone. I think Google could be one company that is greatly affected by the invention of the Internet Economic Network (which is what AGLOCO is).
To make this simple – Let’s say that AGLOCO is highly successful and gets 150 million members (and that other economic networks also start and together they get another 150 million members (and that further that these 300 million members represent 50% of the active volume on the Internet.)
How will this affect Google profits?
Google’s financial statements release significant data on how Google makes a profit.
First — Google gets 60% of its revenue from selling ads on its own sites and 40% from sites of others (like AOL).
Second — In regard to the AOL etc. 40% part, Google states that it has an 80% cost of revenue on that part of its business (this means that $100 of the revenue that is generated by this part of the business costs Google $80 to get – like the fact that on average Google pays AOL 10 cents a search. – that is about 90% of Google’s average gross revenue (obviously Google pays other suppliers less than 80% or otherwise the average cost would be higher 80%).
Third — The Google direct site revenue (the 60% part), is highly profitable – with an 90% gross profit margin.
Simple math – if Google does $10 billion in total revenue, then $6 billion is direct and $4 billion is indirect (from other sites). The $6 billion has a $5.4 billion gross profit (90%) and the $4 billion has a $0.8 billion gross profit (20%). Total $6.2 billion in gross profit. Google has about 25% in operating costs ($2.5 billion) leaving $3.7 billion in net profits.
IF AGLOCO (and other economic networks) have half of the total Internet users then Google will have only half as many direct customers. – New split would be 50% AGLOCO etc. 30% direct and 20% AOL etc.
Simple math #2 - if Google does $10 billion in total revenue then $5 billion is AGLOCO etc, $3 billion is direct and $2 billion is indirect (from other sites). The AGLOCO $5 billion has a $1 billion gross profit for Google (20%). the direct $3 billion has a $2.7 billion gross profit (90%) and the AOL etc $2 billion has a $0.4 billion gross profit (20%). Total $4.1 billion in gross profit. (Google still would have about 25% in operating costs ($2.5 billion) leaving $1.6 billion in net profits.)
A net profit of $1.6 billion is less than half of $3.7 billion. So Google’s net profit would be less than half of what it is now if AGLOCO succeeds and becomes huge. And where did that $2.1 billion go that Google lost – to AGLOCO and other economic networks.
And this would be AGLOCO‘s income from just search (and not including money from Yahoo, MSN etc.) – A very nice start…..
comments?

Why should I join???????????????

First, it costs nothing to Join and takes less than one minute.

Second, you can help build the AGLOCO community by recruiting new Members TODAY.Right now, inviting your friends to join AGLOCO is as easy and productive as it will ever be – but you need to invite your friends before someone else beats you to them.Remember, the bigger the AGLOCO community, the more attractive AGLOCO is to potential business partners and advertisers.

Recruit your friends and family by contacting them through email. (But remember we have a strict anti-spam policy.)
Use your blog and your existing social networks, such as MySpace and Facebook, to contact your friends and encourage them to join a new community that will actually let them earn money.

Be a part of the Internet’s first Member-Owned Economic Community.

Top 10 Agloco Referral Tips::

Top 10 Agloco Referral Tips


While checking the other Agloco Blogs, I came a accross a very interesting article on Agloco Blog.net regarding the “Top 10 Agloco Referral Tips”. This top ten is a great reference tool to give your direct referrals after they sign up for Agloco.
Here is a summary of his top 10 Aglocoreferral tips, for the full post check out the Aglocoblog.net
1. Use http://www.trafficpods.com and other free traffic exchanges to get thousands of new visitors daily to your blog and splash pages.
2. Use Google Adwords to get highly targetted traffic to your blog and splash pages.
Sign up for AdWords.
3. Create a Squidoo Business Lens. Our Squidoo Lens “Become An Agloco Founding Member” can be found here.
4. Get a Blog - An AAgloco Blog. I’ll be surprised if you don’t have one! You can have one for free at Blogger.com and its very easy to use.
5. Exchange Aglocoblog links with others.
6. Send emails to your friends and online buddies about Agloco
7. Add Aglocolinks to your forum signatures and email signatures. Engage yourself in various forum discussions online.
8. Join AGLOCONNECT and make full use of the free advertising tools created for you.
9. Get additional traffic by listing your Aglocoblog or site at AglocoDirectory.
10. Introduce Aglocoat eBay and YouTube where large communities of users are active.

The AGLOCO member calculator: what will you earn?

The AGLOCO member calculator: what will you earn?

The AGLOCO member calculator does not calculate in dollars or any other money amounts. This means there is no guarantee that you will make over $4,800 per month, if you refer 5 members, as some are claiming (including an alarming number of Portuguese-language blogs I have seen).

Here's how it works:

The calculator shows the amount of hours you will likely earn if you refer x amount of members who surf x amount of hours. Nothing more.

When the Viewbar comes out and advertising money begins to flow, AGLOCO will, based on this information, specify a rate per hour. Based on this, you will be paid according to the total number of hours in your account (that third column in your chart that will only contain zeroes until the Viewbar is out) multiplied by the rate of payment established per hour. If the rate is $1 per hour and you have 1000 hours, you will get $1000. If the rate is 0.65 € and you have 300 hours, you get 195 €.

A more thorough example:

Let's say there are 450,000 members and $40.5 million in advertising revenue the first month the Viewbar is out, and each member surfs the maximum 5 hours (of course it won't be quite like that, but for simplicity's sake let's assume this):

450,000 members X 5 hours per member = 2,250,000 actual member-hours.

Why actual? Because we still are missing something: since each member gets credit through 5 levels, this means that each member-hour surfed counts 5 more times. Even if nobody referred you, your status as a direct or indirect referral of the company remains. Thus, every member hour that exists is counted once for actual time and five more times in five other members' networks as the hour of a direct or indirect referral. To clarify,

1 actual member-hour = 6 hour credits.

So, multiplying 2,250,000 actual member-hours by 6, we get 13,500,000, or 13.5 million hour credits.

Now, using the $40.5 million revenue figure I pulled out of my imagination, we must divide the revenue by the total number of hour credits to get the rate of pay per hour:

$40,500,000 divided by 13,500,000 hour credits = a rate of $3 per hour credit.

Thus, given these conditions (which are just for demonstration and should not be taken as realistic examples), if you have 9 members in your network (including you, a total of 10 members) and you and all of them surf the maximum 5 hours, you will get credit for 50 hours and will thus receive 50 X $3, or $150.00.

PLEASE NOTE THAT THIS IS SPECULATIVE. I have, for simplicity's sake, omitted other factors that will affect this rate:

• AGLOCO's operating costs, though they will be small in comparison to its revenue, will need to be subtracted from the total revenue before calculating a rate.

• 10% of the profits goes to the AGLOCO team (that's right, just like Tom Cruise pays his agent 10%). This of course also lowers the rate.

• Now for the bright side: not every member will download the Viewbar, which brings the number of active members down and thus will increase payouts.

• For those of us who download the Viewbar and use it, if it is not used for the five hours, you only get credit for the number of hours you use it AND you only get credit from your downline members' hours to the extent that you surf. If you surf only 1 hour, you only get 1 hour of credit for every 5 hours earned by your network (in the above example, you would not earn $150, but $30). This obviously means that the number of hour credits is reduced, resulting in an increase in the overall rate per hour credit.
• The AGLOCO affiliate discount program may throw in other variables. Here is a description of it, taken from this post on the official AGLOCO blog:

"The AGLOCO Viewbar software will be capable of sensing when you are making the type of purchase for which AGLOCO has a revenue sharing program (and by potentially directing you to that partner if you are not already on their site). If you make a purchase, the Viewbar will collect the commission from that purchase. Initially, this revenue may be added to the general AGLOCO revenue pool for expenses and Member distribution, but eventually a sizeable percentage for that revenue will go directly into the Member’s account. Thus, the more a Member buys, the more money will be put into his or her account in addition to regular AGLOCO income."

AGLOCO put that stipulation about using the Viewbar for the maximum time allowed in place so that people would start using the Viewbar often and right away (companies want to know that they are reaching people with their ads). Aside from what is mentioned here, I can't think of anything else that enters into the fray. Please comment if you think of something.

Conclusions by spacelive.com

Conclusions by spacelive.com

The valuation conclusions are based on AGLOCO reaching two million users in a two year time span:

• A user who has no referrals should receive ownership in AGLOCO worth on average about $150. (plus monthly cash distributions)
• The average value of an AGLOCOuser’s referral network should be $30 each in ownership shares plus the referrer’s share of monthly cash distribution.
• The average AGLOCO direct referral should be worth in excess of $3,000 each (see example below for details)
• The analysis also shows a range of monthly cash distributions of between $5 and $15 a month per user.
• The AGLOCObusiness model looks theoretically sound – (assuming they get to a decent size quickly - at least 500,000 users within nine months to a year)

Sign up now : AGLOCO

40 reasons why you should join AGLOCO

40 reasons why you should join AGLOCO

AGLOCO

1. You can make money safely, legitimately, and easily.
2. It takes maybe three minutes to join.
3. You need nothing more than a working computer connected to the Internet.
4. You don't have to enter any sensitive information to join.
5. You don't have to buy anything to join.
6. You don't have to buy anything ever once you are a member.
7. It's easy to cancel if you don't want to be a member any more.
8. You'll only download a small free toolbar that won't install anything else on your computer, hog its memory, or read your keystrokes.
9. You'll make the same amount of money even if you never click on anything.
10. AGLOCO is the real deal, not some little scam. A good number of notable entrepreneurs are backing it. A Google search with keyword "AGLOCO " will net you 1 million pages and counting.
11. Very important: AGLOCO 's business model has been tried before and proven to work. In fact, AGLOCO's predecessor paid out over $120 million to its members (this is what finally convinced me).
12. You can dramatically increase your income by referring other people to AGLOCO, because...
13. ...AGLOCO pays you a portion of the surf money earned by those you referred up to 5 levels below you. So...
14. You can recruit your friends and all make money together when you help them get referrals. Thus,
15. The sooner you sign up, the more folks will come to you for info and the more likely it is that you will be the original seed of a large referral network in your community.
16. You never have to read emails from people you don't know.
17. You'll never be asked to send emails to people you don't know.
18. You don't have to change anything you normally do on the Internet. You surf, AGLOCO pays.
19. AGLOCO's revenue source is genuine: a Viewbar members use that shows targeted advertisements based on your surf history, with the money paid to advertise going back to the members. That's not magic; that's common sense.
20. The Viewbar software you will download will not invade your privacy; it simply looks for keywords on the pages you view in order to show related ads.
21. The Viewbar is maybe the size of your taskbar at the bottom of your screen - in other words, it's small and won't interfere with your browsing experience at all.
22. AGLOCO has a thorough privacy policy that explicitly guarantees personal information will never be sold or given away.
23. In fact, AGLOCO has not one but three agreements every member must agree to. The bases are covered.
24. AGLOCO has a CPO - Chief Privacy Officer - whose responsibility is to make sure your privacy is never violated. His name is Ray Everett-Church, and he has more experience protecting privacy than probably anyone else on the planet.
25. AGLOCO doesn't play; anybody providing fake information, signing up twice, or otherwise trying to cheat the system will be detected by AGLOCO's anti-hacking instruments. This is an honest enterprise through and through.
26. By signing up, you support the company that will change Internet advertising for the better.
27. By signing up, you get to own a piece of the company that will change Internet advertising for the better. AGLOCO belongs to its members, which is to say that...
28. ...you will own stock (more if you refer people) in a company that is likely to become huge and thus your stock will be worth something awesome when AGLOCO goes public on the London Stock Exchange.
29. You will likely find that other AGLOCO members, especially now in the early stages of AGLOCO, are some of the Web's savviest users and developers, and you can learn a bunch from them.
30. You get to be on the cutting edge of World Wide Webware development, which means that as AGLOCO grows, its members will benefit from...
31. ...discounts when members buy from companies affiliated with AGLOCO;
32. ...possible help with spyware/antivirus protection (remember, everyone from Fortune 500 companies to millions of users will all benefit from a better browsing experience);
33. ...community forums where members can meet and discuss not just stuff, but ways and member-based projects to make AGLOCO better (it is our company).
34. Our company is in good hands. AGLOCO pays 10% of its revenues to Infomediary Services Corporation (ISC), which is simply the management company that is responsible for managing AGLOCO. The other 90% of the revenue belongs to us. This 10% will attract the designing talent needed to make AGLOCO great. The corresponding 10% of AGLOCO's shares go to a foundation dedicated to providing every human being on Earth with Internet access.
35. AGLOCO's management team will not get stock in AGLOCO. This ensures that those in positions of high responsibility don't hijack the company.
36. Though circumstances will vary, you can get paid and earn shares no matter where on Earth you live.
37. If you choose, you can donate your earnings and shares to the charity of your choice.
38. If you get involved in referring more members, you might be able to quit your day job and actually spend time at home, with your family, on vacation, wherever - and still make money.
39. If AGLOCO fails, you won't lose any money because you paid none in the first place.
40. AGLOCO ain't gonna fail. The last time such an opportunity existed, people made over $120 million in under 2 years, when far less people had Internet access and conditions weren't yet right for such a company to go public. Now, with record spending on advertising and calls from all sides for less irrelevant advertising and a better business/customer connection, the world is more than ready for an Economic Network that gives back to its users.

Now, if you aren't yet a member, after everything I just told you, you're not going to go and sign up?

FAQ about AGLOCO

FAQ

2. What is AGLOCO™?

AGLOCO™ is the first Internet based economic network, which enables you as a Member to ‘Get your share of the internet.’ Advertisers, search companies, online merchants and other businesses currently pay lots of companies to deliver people like you to them to get your attention and sell goods. With AGLOCO™they will be paying YOU.

AGLOCO™ is also a global community of Internet users whose active Members can be paid for all their online activity. By downloading our proprietary Viewbar™ technology, members benefit from engaging yet unobtrusive content tailored to their interests. AGLOCO™ also pays its members to refer their friends to the community (and for those friends to refer more friends through four levels of extended referrals.)

3. How can I earn money?

The AGLOCOnetwork pays you in various ways by installing their Viewbar software and displaying it on your web browser (currently up to a maximum of 5 hours per month). You can earn money by referring your friends to sign up as you will get a portion of their viewing hours added to your own. Downloading the software and creating your own network of referrals could enable to achieve large amounts of profit with AGLOCO.

4. When will the Viewbar be available for download so I can start earning money?

AGLOCOstated in their official blog that the Viewbar will be available for download between early to mid April.

5. Can two people who share the same computer sign up?

Yes. AGLOCOencourages every user in a household to sign up and does not restict on a per IP basis.

6. Do referrals have seperate monthly limits?

No. As of today, the maximum surfing time per user is 5hr/month. You will only get credit for the hours that you and your referrals surf. If you only surf 2hr/month, you will only get credit for 2hr/month per referral.

What is AGLOCO??

What is AGLOCO?

AGLOCO is a new startup (still in beta) that will pay its members to surf the web. You are a “member” when you sign-up. AGLOCO will also pay its members for friends you refer and for friends that are referred from your friends and so on. The best part is that all of this is free! You don’t have to spend a penny. AGLOCO stands for “A Global Community”. To sign up..

http://www.agloco.com/r/BBCN7609

Yeah but how do I get money for signing people up?

First direct referrals are people you sign-up. Extended referrals are people that sign-up under the people you sign-up. The extended referrals will go to 4 levels past your direct referral. So for example if you sign-up 5 people who in turn sign-up 5 people and everyone surfs their 5 hours per month, then you should make 4886.25 per month according to the calculator on AGLOCO . A big note here, that number is not dollars, it is a percentage of cash and shares. Also the share price of the company is not yet determined. So if you can get that one super referrer that signs up 50+ people you could be all set.

How will AGLOCO make money?

They will be paid a 10% fee.

One last note. AGLOCO is giving 100% of the company stock to its members. So get in now and get some.

http://www.agloco.com/r/BBCN7609