"My Paying Ads" Brutally Honest Review

[magicman]

All these rev-share crow about a 20% or more return when you buy advertising from them. So I did my best to take one apart and really try to understand how it works and how it might (or might not) work for the average persoen.

By the time I was done writing, I had over 20 pges so I packaged it into a digital download.If you've been thinking about these rev-share sites, you'll find this very interesting (I hope).
 
It's a completely free, no-obligation, no opt-in deal here:
http://edgarallenmarketing.com/resources/100-seconds/

Enjoy! - MM

[SurfSmarter]

Not to rain on your parade, MM, because I do really like the contents and your approach to making the best of a sow's ear. I did not intially do this as a follow up, or expansion, to your final concerns but rather to help my own partners/customers...

here is the REAL "reality" for those of you thinking about participating in ANY of the "10 ads a day" RevShare advertising schemes...

WARNING: The remainder of this post contains an over-abundance of honesty...

Sorry but this scheme where you buy ads to 'participate' in a revenue share and you click on ads to create traffic for others that buy ads to participate in the same revenue share is basically a closed (incestuous) marketing system where you are marketing only to other advertisers.

The traffic resulting from this type of program is near worthless for anything other than the "get rich quick" or at least the 'get rich with out doing any real work" niche.  The reason is the vast majority of people that are clicking on ads to go to your site, are individuals that are simply trying to make (back?) their own money by participating in the revenue sharing... and are not people who are in any way interested or even looking to spend any money as customers on whatever is being advertised .

This extremely poor quality traffic is absolutely useless and does nothing for any real legitimate business, IMO. BannerBrokers, AutoSurfDaily, StudioTraffic and 12DailyPro are all pretty good examples of this type of PTC/PTS/PTR scheme -- use google to see for yourself the eventual outcome of those scheme.

Let's look at one recently promoted example which promises up to 150% ROI in just a few days and starts it's 'adpacks' at just $1

MyPayingAds advertises it's "packs" as follows

AdPack-Plan 1: $1 share maturing at $1.20 (120% Returns)
AdPack-Plan 2: $3 share maturing at  $3.60 (120% Returns)
AdPack-Plan 3: $5 share maturing at  $6.25 (125% Returns)
AdPack-Plan 4: $7 share maturing at  $8.75 (125% Returns)
AdPack-Plan 5: $10 share maturing at  $13.00 (130% Returns)
AdPack-Plan 6: $15 share maturing at  $19.50 (130% Returns)
AdPack-Plan 7: $20 share maturing at  $27.00 (135% Returns)
AdPack-Plan 8: $30 share maturing at  $40.50 (135% Returns)
AdPack-Plan 9: $40 share maturing at  $56.00 (140% Returns)
AdPack-Plan 10:$50 share maturing at  $75.00 (150% Returns)

BUT all of these 'packs' pay out a 10% commission to the recruiter

So what is actually happening is as follows:

AdPack-Plan 01: ($1 - .10 = ) $.90 share maturing at $1.20
AdPack-Plan 02: ($3 - .30 = )  $2.70 share maturing at  $3.60
AdPack-Plan 03: ($5 - .50 = ) $4.50 share maturing at  $6.25
AdPack-Plan 04: ($7 - .70 = ) $6.30 share maturing at  $8.75
AdPack-Plan 05: ($10 - 1.00 = ) $9.00 share maturing at  $13.00
AdPack-Plan 06: ($15 - $1.50 = ) $13.50 share maturing at  $19.50
AdPack-Plan 07: ($20 - $2.00 = ) $18.00 share maturing at  $27.00
AdPack-Plan 08: ($30 - $3.00 = ) $27.00 share maturing at  $40.50
AdPack-Plan 09: ($40 - $4.00 = ) $36.00 share maturing at  $56.00
AdPack-Plan 10: ($50 - $5.00 = ) $45.00 share maturing at  $75.00

And since there are purchase limits and requirements;

AdPack-Plan 01: max of 200 packs
AdPack-Plan 02: min of 100 Adpack-Plan 01 packs required (max 200)
AdPack-Plan 03: min of 100 Adpack-Plan 02 packs required (max 200)
AdPack-Plan 04: min of 100 Adpack-Plan 03 packs required (max 200)
AdPack-Plan 05: min of 100 Adpack-Plan 04 packs required (max 200)
AdPack-Plan 06: min of 100 Adpack-Plan 05 packs required (max 200)
AdPack-Plan 07: min of 100 Adpack-Plan 06 packs required (max 200)
AdPack-Plan 08: min of 100 Adpack-Plan 08 packs required (max 200)
AdPack-Plan 09: min of 100 Adpack-Plan 09 packs required (max 200)
AdPack-Plan 10: min of 100 Adpack-Plan packs required (max 2000)

The reality is even if just one person followed the widely recommended investment plan to compound 100% of earnings to maximize the 'returns'

+ 200 x $1 = $200.00
+ 200 x $3 = $600.00
+ 200 x $5  = $1,000.00
+ 200 x $7 = $1,400.00
+ 200 x $10 = $2,000.00
+ 200 x $15 = $3,000.00
+ 200 x $20 = $4,000.00
+ 200 x $30 = $6,000.00
+ 200 x $40 = $8,000.00
+ 2000 x $50 = $100,000
Total invested = $126,200.00

That would require an investment of $126,200.00 and the operator would have to pay out $12,620 in commissions which only leaves $113,580 but the program would require $185,160.00 just to pay out those "matured" packs.

+ 200 x $1.20 = $240.00
+ 200 x $3.60 = $720.00
+ 200 x $6.25 = $1,250.00
+ 200 x $8.75 = $1,750.00
+ 200 x $13.00 = $2,600.00
+ 200 x $19.50 = $3,900.00
+ 200 x $27.00 = $5,400.00
+ 200 x $40.50 = $8,100.00
+ 200 x $56.00 = $11,200.00
+ 2000 x $75.00 = $150,000.00
Total Payout = $185,160.00

BUT there is another component you need to (re)consider...that 10% commission again...

It means, in order to take in the money required just to pay that one single person their $185,160.00 there HAS TO BE OVER $205,733 in NEW ADDITIONAL MONEY TAKEN IN... ($205,733 - 10%($20,273) = $183,160)

This means that unless the operator makes MORE THAN A 163% RETURN ON **EVERY** SINGLE INVESTMENT that he is EVER "using" the money for, there WILL NEVER BE ENOUGH MONEY to pay people (maybe you) for the ad packs that are being purchased.

This is the very reason that despite claims to the contrary by operators and promoters, the SEC and other US authorities have started to investigate, and in more than a few cases have shut down, some of these revshare schemes as the ponzi schemes that they are.

and even WORSE... the most significant difference that MyPayingAds "BOASTS" about is the advantage? that "each level" is a "separate pool" but what that actually means when combined with the minimum purchase requirements is that before even a single $50 adpack of YOURS can even start to mature someone else would have had to already invested at least $13,100 (a minimum of 100 of each of the lower priced ad packs BEFORE he could purchase even a single $50 adpack (which is where your share of that $50 adpack revenue actually comes from)

Breaking News!
http://patrickpretty.com/2015/12/09/bulletin-2-arrested-in-alleged-banners-broker-pyramid-scheme/

[magicman]

Wow - and I fancied myself a pretty good investigator. I did not totally go far enough and certainly don't feel rained upon. I had already concluded the ad component was crap because there are not enough ads with the ad-pack to do anything.

I am blown away by your incredibly insightful and detailed response and am truly grateful for it.

That page of mine and the guide will be "killed" and no longer public. I'll leave it up for a few days for RWW members who are interested. If I get any questions about this program, I'll just refer them to this thread. I hope our fellow RRW members tune in to this. You've really posted great information and performed a great service to our membership and community.

Thank you. - MM