AGLOCO Share Scam
Imagine AGLOCO goes public and issues shares. How is it possible for the stock price of AGLOCO to go up?
They have stated that 10% of their profits will go to management leaving 90% of earnings distributed to members and paid in share dividends.Share valuation is based on two things - expected dividends and company growth. Considering that all their profits will be returned to members/shareholders/management, you can’t expect that the company will have any growth through reinvestment of it’s profits.
The only way for it to grow is through gaining memberships and increasing advertising revenue. Unfortunately, the membership base is limited.
Let’s say everything goes well and EVERYBODY on the internet signs up to AGLOCO. Then what? Can it expand into other markets or diversify like Google and Microsoft do? No, because it’s profits go to the users and AGLOCO won’t be able to finance any ventures. Think they’ll get some investment capital? How will the investors be paid back when all the profits go to the members?
Long-term growth is improbable which would see intelligent investors not favor AGLOCO shares resulting in a rock-bottom share price.
Even if AGLOCO doesn’t reach every internet user (of course it won’t!) they will still reach a point (if they haven’t reached it already!) where the amount of new referrals is minimal and company growth grinds to a halt. Considering the constant delays in the Viewbar release, AGLOCO has probably used up it’s potential member base so AGLOCO will not have long term growth.
How about expected dividends? Well, after the very short term and the company is no longer growing, dividends can at best remain constant and not grow. This isn’t necessarily a bad thing. However, investors wanting to receive a constant dividend would invest in the bond market which can be a LOT more secure than a new internet company.
So would investors invest in AGLOCO based on the dividends? Let’s put it this way - If you wanted constant dividends, would you invest in a government bond that paid you a constant guaranteed dividend over a long time, or would you invest in a new internet start-up whose owners started a very, very similar company that went bust after two years? I know which investment I’d retire on.
AGLOCO would not be a sound investment for shareholders which would drive the stock price down. Way down!
People with huge referrals may make some money if they get out before it goes down - just like AllAdvantage. If you actually do manage get publicly listed shares - sell them quickly and invest in something else. Anything else!
For another great analysis of the AGLOCO Share Scam, check out Babak’s post - What Everyone Ought To Know About AGLOCO.
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by Shailendra Doke
Kumiko,
where did you hear that AGLOCO has stopped growing?
Also, ‘if AGLOCO spread to every internet user’ then 10% of the profits would be an absolutly massive amount of money and they would have more than enough money to ‘re-invest’ in the company and to expand into other areas.
Paying it back to the members IS a way of expanding the company. - Paying the workers good wages so they go tell their friends to do it too.
As for it being a sound investment yes, the big boys arn’t going to be investing huge amounts of money in AGLOCO, but thats what’s so great about it! ITS FREE, (money wise) which means all the little guys like it, its a chance to be part of something that has no monetary risk but a potentialy high gain. What do you expect if the way you ‘buy’ shares is by using a Free toolbar.
I agree that the delaying of the Toolbr release has damaged AGLOCO, but not beyond repair.
by matt608
Matt - I didn’t say that AGLOCO has stopped growing…just that it WILL stop growing…if it ever gets started!
For everyone’s information, the 10% is PAID to a management company (on their website they it’s just like Tom Cruise paying his agent) so it won’t be reinvested in to the company. It’s a management salary separate from the owners and founders.
Having more members may expand the size of the company but that doesn’t necessarily mean that profits will rise. Furthermore, you can just keep telling people indefinitely - that’s why pyramid schemes collapse..they run out of people!
The big boys won’t be investing in it but there’s a potentially high gain? Why aren’t the big boys investing then? The big boys are big because they’re smart about investments.
It’s a debatable point, but I really don’t think the Viewbar is free. And this point was agreed with on the official AGLOCO blog. You’re selling part of your computer screen for the shares. I don’t know about you, but I’d charge a lot more than what I think they’ll pay!
Best of luck!
Kumiko
by Kumiko
So, um, what is it with you and Agloco anyway? You seem to have a ton of personal grudge against them. Did one of their co-founders ever abuse you when you were little?
by Michael A. Setyaputra
Michael - haha! NO!!! It’s nothing personal against AGLOCO at all. It’s funny - if i write how the e-book merchants won’t make you money, everybody cheers…but if i write how AGLOCO won’t make money, there’s a big backlash. Why? There’s a chance people will listen to me, which means less referrals which means a few cents less for the AGLOCO supporters.
Why am I against it? Same reason I’m against the e-book merchants. The hype promises more than they’ll deliver.
In the last days of AllAdvantage, everybody was desperate to get referrals as the user base was dry and the amount of spam going around was not funny. I don’t want to see that again with AGLOCO. Keep the internet clean!!!
Kumiko
by Kumiko
oqMichael and Mat: What’s become apparent is that Agloco is your standard pyramid-type MLM scheme, and like such schemes, only the people near the top are going to make any money (if anybody outside of Agloco itself will ever make any money at all); the people who can gather the most referrals underneath them. Agloco’s been around for long enough that those people are already set, and for all the time a new member would spend trying to gather referrals underneath them, they could probably make more money working a minimum-wage job.
Perhaps in six months I’ll be eating those words, but from what I’ve learned about Agloco today from Kumiko and the article she’s linked to (which you should read if you haven’t; good stuff), I just don’t see how it could be worth anyone’s time. Their product, their profits, their business plan — it’s all just vapor.
by Garrett Albright
Since it is not a public company (as far as I know) it would be hard to say how it would work if they went public.
In fact, it seems a bit vague right now exactly what they consider cost and what they consider profit. Normally I would think that what they pay to members would be a cost (income being what they are paid to advertise). Again, I am going pretty much by what I have learned here, not by personal investigation.
But then, I do not plan on investing in Agloco in any form.
by James
Kumiko,
not to be nitpicky but a government bond gives interest not a dividend. But I know what you are trying to say, that this is much riskier than more common investments like bonds.
I’m not sure I would call Agloco a ’scam’ because I have no idea if the intention of the founders is to scam people. All I know is that they have created a very complicated scheme - on purpose - and you have to ask yourself, why?
As for those who have a gazillion ‘downstream’ members, their base will crumble at the blink of an eye when the minions become frustrated at how impossible it is to extract a cent from all their effort.
Whatever those top guys make in $$ they will lose much more in goodwill.
reputation > money anyday
by Babak
Thats a really good post and a good point well explained.
by stubsy
Just so you guys know, I’ve never nor do I plan to join Agloco. Especially after some dude with the username ‘Agloco’ kept spamming me on MySpace.
And Kumiko, it’s just weird seeing how you express that much hatred to Agloco yet again. Didn’t your previous Agloco article make it to the official Agloco blog already??
Take it easy there now, girl…
by Michael A. Setyaputra
I just posted my lengthy reply to your post on my blog:
http://aglomerate.com
by 1dollar
I was pondering yesterday if I should dedicate a post to it. Figured I’d just take down my Agloco banner and pretend it all never happened. Guess I got caught up in the Agloco hype for a minute there.
When I saw they were related to AdAdvantage I remembered how I did the same thing with those guys about 6 years ago.
by Bob
let us wait n see
and here is the score.. http://www.googlefight.com/index.php?lang=en_GB&word1=agloco&word2=kumiko let see ..the next LoL
by YBM
This is the first time that I have visited this blog. I would just like to say hello to everyone. Isn’t it a very pretty blog with all the nice colors and the nice theme. As far as the agloco thing. I agree that it is just another pyramid scam. I do not think that they will ever get their view bar to work. Sort of like they want to go to the moon, but have no idea how to get there.
by Dwayne Reaves
Kumiko, you’re making a lot of sense here and I see more are awakening to the fact that this could well be one big repeat of AllAdvantage. I was there before and I think the delay of the promised Viewbar is hurting them.
Just remember this: when people can’t keep their promise, would you ever trust them again? Even though if there are umpteenth excuses they make?
Despite this revelation, you can’t stop those who still believe in it. But right now I don’t like the smell of it, too.
by scorpio
Hi Kumiko, I read this post and translate into spanish, you can see it at http://www.puntofape.com/agloco-%c2%bffraude-compartido-21/ thus everybody can see it in spanish!!
by Fabian
Hi,
Now this viewbar is out. People are using it. So everybody is quiet now.. What happened????? Where are those who were shouting against it..
I w’d say that it’s just like glass “half- empty, half-full” type secene. People who have joined it have so much GOOD to say and those who didn’t, they can’t see anything good. I have read earch & every comment. So many things are debatable. Even big companies can’t deliver their s/w at time. So what’s wrong if Agloco took 2 months more to release their viewbar. It was supposed to release by march end. They w’d have released at that time too but to integrate it with ads, etc etc took time.I think they were very correct in taking time and releasing it full-fledgedly so that it could be useful to members like me who have complete faith/trust on Agloco.
KUDOS TO AGLOCO, IT’S FOUNDERS AND ALL MEMBERS TO GIVE US SUCH A WONDERFUL OPPORTUNITY.. I PRAY FOR THEIR GOOD FUTURE..
by Ashish
Riiiiight……….
I haven’t said anything about it’s release it should be pretty obvious to users now that it sucks. Isn’t it showing an ‘ads coming soon’ area?? What does it actually do for you? A nice calculator?? All it does is slow down your computer. How many people do you think will be still using it after a week when they haven’t earned anything, their computer is running slower, and all they are seeing is an *ads coming soon* line?
by Princess Kumiko