AGLOCO is going out of business, that is, unless one of their members or someone else buys the site off the hands of the current owners or invests big money so they can continue on in their development plans.

Received an email from AGLOCO’s development team this morning the gist of which is that, while they continue to believe in the AGLOCO concept, their revenue is currently not enough to give members a share that amounts to much of anything. They say their membership numbers continue to increase but that the resulting revenue is still not enough to support operating costs and their development team simply can’t continue to use their savings to fund operating costs. So they are asking if any member is interested in pursuing the continuing operations of AGLOCO, that member should contact them.

A few months ago, I’d signed up with AGLOCO to find out exactly what they were about after doing a post about them, but I never really invested more than the time it took to sign up so there’s no real loss there for me. I’ve read how a number of people invested money in trying to increase their referrals in the hope of getting bigger money once AGLOCO skyrocketed; but risk is what it’s all about in this business. You take your chances and deal with the consequences.

The concept of users of the Internet getting to share some of the money their use of a website helps to generate for the website owner is nice, but in reality, even if AGLOCO had been making money, it would end up being no different from GOOGLE ADSENSE and similar programs whereby certain individuals are able to make decent money using the program while the majority of members, publishers, or whatever they’re called under the specific program, make nothing or pennies per day.

Following up on our post AGLOCO: The Internet’s First Economic Network we stumbled across a post by MrGPT breaking down the AGLOCO system. While he doesn’t exactly call the system a scam, he does warn that AGLOCO doesn’t tell the whole truth about the way their program works, and that the AGLOCO system is a lot more complicated than AGLOCO members think. His post is worth a read. Is Agloco a scam? What everyone should know!

Meanwhile here are some interesting comments about AGLOCO taken from TradersNarrative - What Everyone Should Know About AGLOCO This is not to imply an opinion one way or another about the legitimacy of AGLOCO. As long as you’re not going to invest money into trying to build up your referral network, if all you have to lose is your faith in mankind well, get rid of that at the offset and if AGLOCO turns out to be worthless which is actually more highly likely than not, you’ll have lost nothing. If you have nothing to lose then taking a risk on a possible gain can result either in gaining nothing or gaining something. The point is, as long as you don’t follow the lead of those people who actually spend money trying to grow their network, you’ll either lose nothing or gain something so it’s a safe risk to take.

Babak
…there’s no such thing as a free lunch

True indeed, those of us looking for easy ways to make money ought to realize that there are no easy ways to make the kind of money we’d love to make. Not even winning the lottery is an easy way to make money. It seems easy because all you have to do is think up some numbers and spend a dollar; but you keep doing that year after year and you’re not winning the lottery. Furthermore, you’re losing money every time you play.

This next comment could very well sum up the real business model of AGLOCO indeed:

S Holmes
The real business model of Agloco is probably as follows:

* Using a pyramid-like concept, a large number of members will be recruited; Agloco envisages between 1 and 10 million members. Recruitment bonuses are not paid in cash, but in “units”/”shares” with vague promises of large profits some unspecified time in the future.

* The members surf advertisements on the internet and generate a small income per surfing hour to the company (which becomes quite much money if there are several million members), but the members are not paid any money; They only receive “units”, with vague promises of large profits on these “shares” sometime in the future, “when the company becomes profitable”.

* The income from the members is used to pay inflated salaries to the managers/owners of Agloco

* After 1 - 2 years (or when many dissatisfied members start asking questions about when the promised large profits on the shares will appear) the management will let Agloco go the same way as AllAdvantage and the rest of the paid-to-surf companies from 1999-2000; The company is run into bankruptcy or shut down, with the explanation that: “Unfortunately, the expenses of the company were larger than the revenues!”

* In the end, the members will be left with a heap of worthless shares in a bankrupt or shut down Agloco, as “compensation” for their advertisement surfing and recruitment efforts (but with no money).

The owners/management, on the other hand, will have enjoyed being paid high salaries and commissions for a couple of years, and can retire from Agloco as wealthy men.

In short, the probable business concept of Agloco can be summarized as:

Get a large number of people to work for you without being paid, by promising them large profits in the future.

Then pocket the revenue from their efforts yourself!

It’s a nice thought the idea that a company would want to compensate you for your contribution to their growth and success, but let’s face it, to become huge they need millions of people contributing so how much can they conceivably pay back the millions of members who help them become a billion dollar company? Not much. Even if AGLOCO is legitimate, the individual who commented that you can probably make more collecting cans off the street than in a lifetime of being an AGLOCO member is probably right.