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Feb. 14th
BBB Report on Stormpay: http://data.middletennessee.bbb.org/commonreport.html?bid=2146166
Feb. 12th
StormPay News: It is very difficult to determine what news about StormPay is real and what is just rumor. I try to make sure I find some valid report online before I pass anything along. There is one very peculiar thing that have now received news of from at least 4 different people. Not sure if this is true or not but it does seem to make sense to me.
Word is StormPay either had their own HYIP site or they were very involved with 5 Day Funds. Some kind of agreement maybe or they were running it. I don't know. The point is, what people are reporting is that StormPay planned this for a long time. They used the reserve funds from several autosurf StormPay accounts to pay members in their HYIP program. Then to cover their tracks they started locking up those accounts and blaming the autosurf sites for the problem. Now this is just heresay at this point but like I said, it does kind of make sense to me. Speculation is that StormPay management is in serious trouble. That someone or some people are definitely going to jail over this. Maybe I shouldn't even be saying this without any real evidence. If you don't agree that's ok. You don't have to. That's what freedom is all about.
As you know StormPay not only zeroed out thousands of members accounts but they also started going after bank accounts to get even more money. Most people think this was unauthorized access to their bank account but bank management from various banks are all saying the same thing. Anytime you give someone your bank information you are authorizing them access to your account. Lots of people have called their banks to ask them this and they are all confirming that is the case. So, if StormPay zeroed out your account and you think they might try to get more money you have a few options.
1) Do like StormPay's site suggests and submit a help desk ticket demanding they remove your bank account info from your profile. You can remove credit cards yourself but you cannot remove bank accounts. Only SP can do that. By law if you request it they have to honor your request. I did this and 3 days later they did remove my bank account. Keep in mind, if you need to withdraw any funds later you will have to add your bank account back.
2) Terminate your StormPay account. This is a permanent solution. It would disconnect them from you completely but this also means if SP does eventually start giving refunds you would not get anything back.
3) Close your bank account, open a new one, and transfer all funds to your new account. This can be a major pain if you have bills coming out of your account or you have a debit card attached to your bank account that you have monthly charges going to. It would mean contacting all those people and giving them your new account information. This is what the banks are recommending as your best option.
More on what you can do... StormPay is likely either going to be cut off or already has been cut off from any type of business with Visa and MasterCard and possibly other major credit card services. They have had so many chargebacks filed against them then credit card companies have to feel a super huge risk associated with SP business. SP doesn't have the funds to give back to those companies so the credit card companies are having to eat all that themselves. The good news? Yes, credit card companies are indeed approving most or all chargeback requests.
Banks are also approving reversals for people requesting them. So, here's the deal. You want to try and get some of your money back? Not just from autosurf's and AAN purchases that were lost but anything you funded SP with during the past 60 days or so. If you funded your StormPay account with your credit card or bank, contact your credit card company or bank and tell them what SP did. Tell them SP is under investigation right now for fraudulent activity. Then request a chargeback or reversal from that funding. I will tell you this too. StormPay just put a new update on their site yesterday. Apparently tons of people are doing this because SP is now threatening to prosecute people for attempted chargebacks to the fullest extent of the law. In their mind they are in the right here but I don't think credit card companies and banks would honor so many of these requests if that were true.
AAN Updates Astray: I'm having a lot of trouble getting through to some AAN members. I had 67 emails bounce from my last update and every one of them were Yahoo accounts. I have tried this from 3 different servers so I don't think it's Yahoo blocking me. The messages always come back after 4 days with a server processing error. This has been going on with Yahoo for at least 3 months but it's getting much worse now. If you know any AAN members who have Yahoo accounts please try to contact them and tell them about what's going on. There are still quite a few SP subscriptions that haven't been cancelled but more importantly, those people don't know that AAN will be relaunching Tuesday.
I did just change the temporary AAN home page to announce the relaunch date and which payment processors AAN will accept. I also put a link to the AAN forum there which is still active. All 3 of my past updates are posted in the AAN forum under News & Updates. This way anyone can go read that even if they aren't getting my emails. I will post this update in there too.
I think I'm going to have my programmer block Yahoo email addresses for AAN members from now on. They are just too unreliable. Hotmail is another free one that seems to be working just fine. Or Juno is another good option I think.
The Autosurf: I got way behind again on the new autosurf program but now I'm making good progress. My programmer for this was not even available for 7 days straight. Guess why? Because all his previous customers who accepted StormPay came to him and asked him to remove SP from their sites and add replacement services. He has been working night and day to help them all get that done. Last night he pretty much finished what I needed him to do. Now I have my designer in there updating the site design and enhancing a few things. Then he will make a couple of good banners to advertise it with. I will be testing the payment process later today. I'm hoping to launch this tomorrow if I don't run into any further delays or script problems.
I know a lot of you have been waiting for this to launch. I will let everyone know when it's safe to join, hopefully sometime tomorrow. For now, egold, ebullion, and EMO is setup on the site. The Auto-Surf-Money site still hasn't come back up so I cannot add them.
Payment Processors Galore: People, please be very, very careful with your money right now. There are numerous payment processors popping up all over the place. There are some people out there with no morals at all. Many of those new processors are in fact scams. If it sounds too good to be true, it probably is. For example, if one of them offers $50 or $100 in your account just to sign up for free, don't join it! All they want is your bank account or credit card info. They are taking advantage of people who are looking for a StormPay alternative. Do your due diligence. Don't just throw your personal info out there for anyone.
It's not that easy to put up a legitimate payment processor real fast. There are too many legality issues that have to be taken care of first. Unfortunately there is a cheap $49 script out there anyone can buy that is full of bugs. A quickie web design and cheap hosting and someone could throw up a brand new payment processor in a matter of hours.
You will know when you see my new payment processor that it was obviously not thrown up in a hurry. The software alone cost almost $3,000 before any custom modifications. That doesn't include the web design either. Easily another $1,000. Lots of people would love to start a payment processor service right now. People need more quality options out there if we are going to continue to do business online. But this is a scary endeavor. It needs to be done right or it will just go down and then we'll left with more StormPay's to deal with.
I really just wanted to take this opportunity to warn everyone about what's happening out there. It can be very dangerous and not everyone knows what to look for. Just be careful, ok?
_________________
Regards,
The Affiliate Advertising Network Administrator
February 11, 2006 Update to StormPay Customers.
11-Feb-2006 17:12
StormPay Inc. is currently suffering from DDOS (Distributed Denial of Service) attacks which prevent StormPay from sending or receiving email communications as well as prevents customers from being able to access their StormPay account's through the StormPay.com website. These DDOS attacks in no way compromise the security of your StormPay account as they are only designed to prevent legitimate traffic access. Federal authorities are investigating the origination of the attacks and have confirmed that they are very close to making arrests in connection with the DDOS attacks.
We are sure that many of you are aware of the recent controversy with Charis F. Johnson and other "Auto-Surf websites". The funds of those merchant's and specifically Charis F. Johnson have been locked in their StormPay accounts as investigations are ongoing into what appears to be massive illegal Ponzi schemes. Any payments you may have received from these "Auto-Surf"s, that were still within the StormPay system have been restored back to the accounts. of those "Auto-Surf"s where the funds are protected and preserved in an effort to try and refund customers who may have been victims of these programs. We can confirm that there will not be enough money available to get everybody reimbursed but we are formulating an orderly plan to reimburse victims to the limited extent that may be possible.
The problem we are seeing is that customers are viewing their "earnings" from the "Auto-Surfing" websites. and believe that StormPay Inc. is holding funds sufficient to cover those "earnings". StormPay is not holding funds sufficient to cover the alleged "earnings" or "payments" or "payouts" that are reflected on the Auto-Surf's website (we suspect we are holding only a small fraction of what is being reflected as "owed" to customers on the websites). Some customers that received a "payout" from these "Auto-Surf"s received that at the expense of somebody else who contributed to the program but who may have never received any "payout". Consequently, the reason that we have restored funds back to the accounts of these so called "Auto-Surfs. that represent payments that some members received was so that we can attempt to reimburse as many people as possible. In the usual Ponzi scheme, if you received a payment from the program it had to have come from the payments that another member made to the program. Therefore, if you have received a payment, you received someone else's money. That is the problem with a Ponzi scheme, once it collapses a lot of people get hurt. There is no way to make everybody "whole" and most people will lose money as there simply won't be available funds to make everybody "whole". The reason that is, once people withdraw their "payouts" or "earnings" out of StormPay, that represents other peoples money, and if the only money coming in is from new "investors" (and not any other source), there is no "new" money available to make payouts or even refunds to some members.
Assume you have a customer (customer #1) who funds their StormPay account with $1000 and sends that money to one of these "Auto-Surfs". Then customer #2 follows up by funding their StormPay account and thereafter sends $1200 to the same "Auto-Surf". Thereafter, the "Auto-Surf" sends $1200 to customer #1 for their percentage of promised "return" on their original "payment" and thereafter, the program shuts down as it did in these cases. In a Pyramid type operation/program/scheme there is no longer any new money coming into the program to pay back customer #2. Customer #2.s payment was what was used to pay customer #1. If this is not a Pyramid operation there should be money to refund customer #2 but there is not in this case. StormPay Inc. cannot allow customer #1 withdraw the money in his StormPay account (which was received from the "Auto-Surf") into his own personal bank account, since it is really the money belonging to customer #2. The only solution is to reverse as many of the funds as possible so that many more victims of the ponzi/pyramid schemes can be reimbursed their original "investment". Keep in mind that many of the first people into the schemes have already withdrawn the funds rightfully belonging to the later participants. Despite our best efforts to correct the seemingly wrong doing of these "Auto-Surfs", there simply will not be enough remaining monies to make everyone "whole". Again, this is due to those admins and other participants of the programs. who have withdrawn monies rightfully belonging to others. StormPay Inc. is currently undergoing an audit, near completion, and done with our absolute and complete cooperation, which will show that every penny of money we have ever had control of can and has been accounted for.
StormPay does not permit the processing of payments for any illegal program and our Terms of Service expressly prohibit the processing of any payments for any illegal Ponzi or Pyramid scheme. Our Terms of Service do expressly provide:
.17. Get Rich Quick" Schemes: Get Rich Quick Schemes are prohibited resell items by StormPay. Get Rich Quick schemes include any type of self-employment, start-up businesses, or investment opportunity where the claims of profit or returns on investment are unrealistic or unsupported. By law, if a business opportunity costs $500.00 USD or more, the promoter is required to support any claims regarding earnings or profits with written documentation.
Pyramids don't pay. StormPay Inc. and the Federal Trade Commission caution consumers about clubs or programs that promise quick money for recruiting new members. Don't bank on the pyramid promise that someone else will pay you. For more information on get-rich-quick schemes, visit the FTC at www.ftc.gov.
There are claims afloat that StormPay Inc. has performed unauthorized charges from customers. bank accounts or credit cards. StormPay can, and will prove to any and all investigators that all charges made were made from each individual's own computer, or a computer from which the customer has accessed, and was an authorized charge by that customer. StormPay Inc. intends to investigate each and every assertion wherein it has been claimed that StormPay Inc. initiated and unauthorized bank or credit card debit, and will prosecute those persons, and seek recovery of, all funds wrongfully charged back, including all costs involved to do so.
StormPay Inc. would like to take this opportunity thank it's customers for their continued support - past, present, and future. We very much look forward to the time in which all investigations have been completed and the truth is revealed to the public and our valued customers. We anticipate having access to our website in the coming hours and resuming normal business operations.
Sincerely,
StormPay Inc.
1690 Golf Club Ln.
Clarksville, TN 37043
FBI asks BBB for records from probe into online payment processor
By MARK HICKS
The Leaf-Chronicle
Auditors were busy at StormPay.com Friday as investigators try to get to the bottom of a dispute between the Clarksville online pay processor and a client who operates an "autosurf" Web site.
"We are excited about the audit," said Steve Girsky, StormPay owner and CEO. "We have no problem with them coming in to do the audit."
Additionally, Better Business Bureau of Middle Tennessee president and CEO Kathleen Calligan said Friday the FBI has requested it receive all records the agency gathers from the BBB's investigation of complaints about StormPay and associated businesses.
Calligan said the BBB plans to issue a statement early next week after more investigation.
On Wednesday, officials with the Consumer Affairs division of the state Department of Commerce and Insurance said an investigation of StormPay was being conducted.
"We are doing everything that we can to process the complaints to the consumers to let them know that it is with the Consumer Protection Enforcement staff, and that we will let them know when the investigation is complete," Mary Clement, director of Consumer Affairs, said in a Friday e-mail.
Girsky and StormPay President John McConnell said, during an interview at their Golf Club Lane office, they were instructed not to disclose which regulatory agency conducted Friday's audit. The two say the examination will show their company has committed no wrongdoing and will "shed a positive light on StormPay."
On Feb. 1, StormPay officials froze accounts of some 30,000 to 35,000 12DailyPro.com members after receiving several complaints from members that money they earned from 12DailyPro was not being sent to them.
12DailyPro, based in Charlotte, N.C., operates a Web site that offers a 12 percent daily return on membership fees for viewing a dozen advertisements a day on Web sites. The pay is based on how much is invested in subsequent membership "upgrades."
StormPay is the intermediary that sends and receives electronic payments from 12DailyPro, as well as a number of other Internet businesses and users. McConnell said 12DailyPro member accounts comprise about 2 to 3 percent of StormPay's total customer base.
McConnell said their records indicate the last payments from 12DailyPro operator Charis Johnson to members was Jan. 8. When complaints of nonpayment came to StormPay later in January, company officials began to suspect something was wrong after Johnson was unable to answer questions about her business.
"She said it was proprietary information," McConnell said.
Steven Carr, an attorney with Nelson Mullins Riley and Scarborough law firm in North Carolina, said Friday he and another lawyer had advised Johnson to "decline all requests for interviews because the investigation was going on."
Carr, who said he was retained to negotiate with StormPay to release money it froze in 12DailyPro accounts, confirmed that he had been contacted by the federal Securities and Exchange Commission regarding 12DailyPro. He declined to elaborate further.
Carr, on behalf of 12DailyPro, released a statement Thursday evening stating StormPay officials were refusing to communicate or negotiate with 12DailyPro lawyers and they were "evaluating our legal options."
McConnell said he had talked with Carr Wednesday. Carr confirmed, saying it was a brief conversation about a fax number and "nothing substantive was discussed."
"I would like to communicate with the folks at StormPay and resolve this on an amicable basis, but I haven't heard back from them," Carr said.
McConnell said StormPay froze the accounts and is holding the money until investigations are completed to help ensure 12DailyPro members receive as much of their investment as possible.
Ponzi or autosurf
Calligan characterized 12DailyPro as a Ponzi or Pyramid scheme. Charles Ponzi in the early 20th century devised a scheme that promises huge returns to investors but pays them with money from subsequent investors, rather than revenue generated by the business.
While some legitimate autosurf sites generate money from companies that pay for Internet advertising, Calligan said 12DailyPro's only revenue is from members who "upgrade" their membership and bring in more members.
"What are you selling? It's not a product or a service ... without it, you've got a pyramid going on," she said of 12DailyPro.
Calligan said she and her entire staff of eight are now focused on investigating the more than 19,000 complaints against StormPay. "We are committed to answering each one," she said.
With the BBB investigation focusing on StormPay, Calligan said they "want to make sure that's all they're doing."
FBI, SEC Probe Web Sites Offering
Large Returns for Looking at Ads
By MARK MAREMONT
February 10, 2006; Page A1
Last spring, a Web site called 12daily-Pro.com began offering viewers an amazing financial deal: a 12% daily return on membership fees.
All they needed to do was to view a dozen advertisements a day on the Web site, the company said. The site would then pay returns to visitors based on how much they invested in membership "upgrades."
Now federal and state authorities are investigating 12dailyPro and sites making similar offers as possible Internet-era variations on a classic Ponzi scheme. Named for Charles Ponzi, an Italian immigrant to the U.S. who gained notoriety early in the 20th century, a Ponzi scheme is a fraud that promises outsize returns to investors but pays them with money from subsequent investors, rather than revenue generated by business.
The 12dailyPro site is among the largest of the dozens of what are called "autosurf" Web sites that have cropped up on the Internet. With names like Auto.ExchangeTrade.com and vegasurf.com, the sites piggyback on a legitimate trend -- the surge in Internet advertising -- by promising generous returns to members who agree to view their ads.
The pitch on one such Web site, SurfCityAutoSurf.com, is typical. "Yes, it's true," says a message on its home page, "you can actually earn up to $100.00 Daily or $3,200 Monthly simply by autosurfing [watching websites]."
On 12dailyPro, visitors were allowed to become members free. To earn cash, they had to "upgrade" their membership in increments of $6, with a maximum investment at any one time of $6,000.
The sites have drawn scrutiny amid a widening law-enforcement focus on Internet crimes. The Federal Bureau of Investigation has made Internet fraud the agency's third-highest priority, after counterterrorism and counterintelligence, and says its Internet Crimes Complaint Center received 207,000 complaints in 2004, the most recent year for which figures are available, up 66% from the prior year.
The agency says only a small percentage of those were investment frauds, but that people fleeced out of small amounts may not report alleged fraud to authorities.
"We are definitely seeing a bunch more scams" on the Internet, which allows criminals a measure of anonymity and the ability to operate from anywhere, said Peter Norell, a securities-fraud supervisor at the FBI's Los Angeles office. Autosurfing sites can in theory be legitimate, he said, but often are "straight ripoffs. Who can deliver 12% per day?"
The 12dailyPro site is under investigation by the FBI, the Securities and Exchange Commission and at least two states, said people familiar with the investigation. In recent days, amid those probes, the main payment processor for 12dailyPro, StormPay Inc., has frozen the funds it was supposed to pay to members.
One law-enforcement official involved in the probe said "a significant number of people" likely lost millions of dollars in the aggregate. The site recently claimed it had 300,000 members from around the world, some putting in $6,000 at a time. The Web site of 12dailyPro still was operating as of yesterday.
Based in Charlotte, N.C., 12dailyPro is run by a woman named Charis Johnson, who managed the site through a North Carolina-registered company she also operated called LifeClicks LLC.
In a statement issued yesterday through her attorney, Ms. Johnson blamed a commercial dispute with StormPay for the unavailability of funds owed to 12dailyPro members. Ms. Johnson said StormPay demanded it be the exclusive provider of payment services for 12dailyPro, then soon after froze the accounts and funds after "falsely accusing us of misrepresenting our business model."
She said 12dailyPro had never missed a payment to members until the problems with StormPay arose. LifeClick's lawyers are "evaluating our legal options," she said, adding that the company is "cooperating fully with all investigations."
StormPay officials said they cut off payments after being alerted to possible fraud at 12dailyPro. In a recent interview, StormPay Chief Executive Steve Girsky said, "We have done nothing wrong." Asked if he believed 12dailyPro was a legitimate operation, he said his company initially had no reason to question it, but "upon further investigation we had a hard time making these returns work."
On its site, 12dailyPro states that earnings to members are financed in part with "incoming member fees," as well as advertising and unspecified "off-site investments." On a recent visit, most of the advertisers seemed to be small, little-known Internet companies, including other autosurf sites.
Several members said that although 12dailyPro promised 12% daily returns, the actual returns were far less, since the amount returned by the company included the initial fee paid by members. A member who invested $600, for instance, would be credited 12 days later with $864. Because $600 of that included the original investment, the actual return was $264, or 44% over the 12-day period, 3.67% a day on average -- still more than any bank would pay.
One customer of the site was Mike Wing, an unemployed bookkeeper in Grand Ledge, Mich., who said he heard about 12dailyPro from a business contact in December and decided to give it a spin. "I was chasing a dream," he said. "I was looking at making $700 to $1,000 a week."
Tapping into his Individual Retirement Account, Mr. Wing said, he initially put in $1,000, then added $1,000 a week later. After getting paid his return on the first investment, he plowed in more and eventually recruited 10 Internet acquaintances to join 12dailyPro. The site promises members who recruit others a share of the newcomers' earnings.
Mr. Wing said he worried that "something was not quite right" about the high interest rate but was attracted by the stories of big payouts to others. Then, last week, a $1,700 payment he was expecting didn't come through. A few days later, 12dailyPro announced its funds had been frozen.
"I feel like an idiot," he said. "I won't ever get back into the autosurf" business.
Another investor, Ryan Hartman, a Houston lawyer, sent LifeClicks a threatening letter on Feb. 7 demanding $1,432.24 -- what he said was his $996 initial investment made in late December plus 44% interest over 12 days, based on the returns offered by the site -- or he would commence a lawsuit.
A third investor, Matt White of Great Britain, said he joined the site in October. He said he was partly convinced by postings on various Web bulletin boards, with one member claiming he earned $50,000 in one month, he said.
Mr. White said he was putting in the maximum $6,000 at a time, and when his account was frozen he and his wife together were owed more than $30,000. Even so, he said, he figures he still is about $10,000 ahead.
Asked if he thought the gains were too good to be true, Mr. White said, "I suppose there was a possibility it was a Ponzi scheme. You always had that at the back of your mind." He added: "144% in 12 days? You don't get that from your bank."
A key figure in spotlighting the site was Barry Minkow, a former carpet-cleaning executive convicted of running a Ponzi scheme in the 1980s who has turned to helping regulators and investigators unravel fraud.
Mr. Minkow said he launched his own investigation of 12dailyPro in December after receiving a complaint about the site, and contacted the FBI. Mr. Minkow also contacted StormPay, the processing company, which is based in Clarksville, Tenn.
Georgia Governor's Office of Consumer Affairs:
georgia.gov > Agencies & Organizations > Governor's Office of Consumer
Affairs Friday, February 10, 2006
Consumer Alerts - Press Releases, Notices and Product Recalls OCA Press
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Pyramid Schemes Never Die; Just Evolve
Issued February 8, 2006
Joe Doyle, Administrator of The Governor’s Office of Consumer Affairs
(OCA) is warning consumers of a potentially fraudulent Internet scam
known as autosurfing. Recent reports to OCA have indicated an upswing in
this new type of pyramid scheme. Autosurfing programs promise consumers
a large profit in a short amount of time, with little to no effort
required. According to reports from the ABC affiliate (ABC4) in Salt Lake
City, Utah, 12DailyPro, a company in which many Georgians have invested,
may be the most recent example. ABC4 reports that this is a
multimillion dollar internet auto-surf company that is apparently no longer in
business but has 300,000 members worldwide who cannot access their
investment funds. The firm that handles the payments for 12DailyPro, StormPay
has frozen the accounts and its owner has said that the money presently
in the accounts will not cover the requests for refunds.
These schemes offer consumers an opportunity to earn up to a 144%
return in just days on the money they invest in the program. Initially, an
autosurf program assigns about a dozen websites to the consumer at no
cost. The consumer visits these websites on a daily basis, logging a hit
on the website with each visit. By doing this, the consumer earns a
small amount of money. However to maximize earnings, the consumer must pay
money for additional websites to surf. Confident in their initial
experience by earning money on the websites assigned to them at no cost, the
consumer invests more and more in additional websites to gain a greater
return on their investments. Testimonials by the first investors
attract new investors, who begin to invest their money in the program. In
pyramid schemes, the money being paid out to first investors is the money
being paid in by new investors.
Inevitably, the program reaches a point where more money is owed to
existing investors than is being brought into the program by new
investors. Because no substantial source of revenue exists other than money
coming in from investors, the pyramid scheme collapses shortly after they
begin and participants lose all of the money they have invested in the
program. Unfortunately, this is when the investors call law enforcement
authorities and it is too late. Doyle said “As the saying often goes,
if it sounds too good to be true, then it probably is.” All consumers
need to closely and objectively examine any money-making opportunity
before investing.
Sunday, February 05, 2006
The Case for a Sustainable 12DailyPRO
There's no shortage of people who rave about 12DailyPro and there's an even greater number of people who are either skeptical or 100% certain there's "no way" it can work. The latter are convinced there is no possibility other than it being a ponzi scheme.
Admittedly, at a glance, it certainly seems like the latter are correct. I mean who the heck can pay out "12% per day" and keep it up indefinitely? Well, welcome to the world of marketing folks. If you're here, you're here to learn, so do your best to keep an open mind.
I'm not asking you, or anyone else, to believe that 12DailyPro was NOT a ponzi, or that it was even sustainable long term. Instead, what I'm asking you to do is to LEARN from the ideas I'm about to present to you. This is to help you think in new ways, to think analytically, rather than
like a native who thinks that this "fire" must be from "the gods.
Point #1 - Earn 12% Per Day.
It's been said before: They pay 12% on your principle, BUT they TAKE your principle from the start and you don't get it back. You only get the 12% earnings per day back which comes out to something like 3.6% per day PROFIT. Subtract Stormpay fees and the time from Day 12 to Day 17 (or 19) when your returns are "pending" and it comes out to something like 2.32%. So 12DailyPro is only on the hook for 3.6% per day.
Point #2 - They Don't GIVE 12% Per Day. It Must Be Earned.
With 350,000 people in the program, don't underestimate the amount of people who either FORGET to do their daily surfing, or go away and don't have a computer to use, etc. There can be any number of reasons why a person doesn't autosurf on a given day and all mean that 12DailyPro is not always paying out to the max.
Point #3 - They Sell Advertising.
Even I was about to purchase some. Let's see...350,000 PROVEN BIG SPENDERS...PROVEN AFFILIATES.... TRAINED TO WATCH ADS EVERYDAY. Hmmmm, how much would you pay to get at a list like that? Forget lazy thinking, "But that's AUTOSURFING, it's the WORSE kind of advertising. People can just run it then walk away. True, but I don't. When I sit down to use my computer, I'm sitting down to use my computer, period. So I start the autosurf and then go about my business answering emails, etc. Every time a new ad shows, it pops to the top screen and I actually see it. Out of 350,000 people, I'm confident a lot of others are seeing it. And as I said above, we are a 350,000 strong list of big money spenders who know how to get referrals and are trained to watch ads everyday.
Point #4 - Some People Just Can't Follow the Rules.
Some people just aren't happy making $2300+ profit every 12 days. So they try to open up multiple accounts which is against Terms of Service and eventually they lose their investment. If they are willing to break the rules, it's due to greed, and that greed never lets them cash out early...they are usually LET IT RIDE type people. Anyways, when those people get caught, they lose their accounts, end of story. If just 100 people out of 350,000 get caught with $12,000 each month, that's $1,200,000/month 12DailyPro has extra to fulfill their obligations.
Point #5 - Venture Capital.
If a company such as 12DailyPro had begun, theoretically, with $2,000,000 venture capital (perhaps they get it from fleeing other failed ventures, who knows) and that money is invested in medium risk investments, that can help fund any shortcomings in the earliest days. When you think about it, a company like 12DailyPro could, theoretically, operate at a loss of $50,000 per month for 40 months with that kind of capital. Or at a loss of $100,000 per month for 20 months...theoretically of course. I'm just giving you something to think about.
NOW, If that weren't enough....
While I think it COULD be enough if advertising sales were strong and it was managed very well, but as I see it, there would be almost no margin of error. It would be like dancing on the edge of a blade and even a slight error could send it toppling. So then what would make it super-incredible sustainable even after, let's postulate, operating at a loss of $50,000/mo for 10 months, but having developed a HUNGRY list of 350,000 LOYAL, BIG-SPENDING, AFFILIATE AD-WATCHERS? What would make this not only WORK, but explode into a barely conceivable amount of growth and money....?
Point #6 - Make It All Private and Unveil a PHASE TWO.
Phase 1, "Earn 12% per day" becomes private. Those already in get to continue doing the same - even possibly at a lesser, but still acceptable percentage like 8% per day. Since payments were always on time and 8% is still an unrivalled return then few, if any, would complain. But now all of those "CHARTER MEMBERS" are ACTIVATED....they are turned into an ACTIVE sales force of 350,000 people.
I keep emphasizing that these 350k+ people have shown a propensity towards big spending, towards risky behavior, towards getting others to sign up, and towards watching ads for their reward. Just imagine offering such a group 40%-50% commission for any referrals to PHASE 2 advertising packages.
And just who do you think will be watching those ads? THE CHARTER MEMBERS. And maybe the non-charter members who buy advertising through PHASE 2 will be offered a DISCOUNT on their ad package if they just watch 12 ads per day. Are you getting this now.
IN CONCLUSION
Quite often we act shocked or surprised when things turn out other than expected. To buffer the shock, the easiest thing is to blame or lash out at someone. It requires more effort to reflect and certainly not everyone even knows how, or that there is such a thing as reflection. Just pleasure, pain...suffer, blame. But we can try things like looking to nature for answers and solutions to our confusion and problems.
In this case, I pondered the transformation of a butterfly. In many cases, companies like 12DailyPro are not intrinsically evil or deceptive. They just fail to build a proper cocoon and so the transformation never takes place.
Just something to think about... :-)
Sincerely,
Sam Freedom
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