webmaster now doesn’t have enough funds coming in to continue paying his members and then it all turns very nasty! Another problem demonstrated by the big collapse last year was that many sites place their money in other autosurf sites to earn money so if one main one goes down the rest follow. Eventually ALL autosurfs will come to an end and unfortunately a large amount of people will loose their money.
Profit Sharing: All the rewards with less of the risk.
Recently a few sites have emerged using a new model which should allow them to last for a very long time indeed in theory they could last forever. Instead of paying a fixed percentage they pay a share of all the daily profits. These companies are ostensibly advertising companies, you purchase some advertising packages and your websites are shown within the program. At the end of each day they will then pay a percentage of the profits earned from purchases of the advertising packs to each active member.
The usual percentage is 90%. So, if the daily advertising revenue is $10,000, they would split up $9,000 among all of the active advertising packages. The figure would be presented as a % such as 4% , so you would receive 4% of the value of each ad pack.
The principles can be quite difficult to grasp initially but it is very similar to the Stock market where share holders get paid a percentage of a companies profits a few times a year. With a profit share site you receive these profits daily. It may become clearer still If I breakdown the daily procedures into small steps.
You join a site and make a purchase of 200 ad packs in this example each ad pack will cost $1 although this varies from site to site so we have spent $200 You surf the required number of pages for day (usually around 15) you then log out.
When you log in the following day you find that the program has paid 4% to all active accounts this is based on the profits earned by the program the day before. Because you surfed the required number of sites the previous day your account is active and you are entitled to 4 % of the value of every ad pack. So in your cash balance you have $8
You now have 3 choices you can purchase further upgrades with this $8 This is known as compounding, you can arrange to have the money credited to your bank or you can just leave it in your cash balance. I would strongly suggest that at this early stage that you use the money to purchase a further 8 ad packs.
You decide to compound your earnings and purchase more ad packs you now have 1 ad pack of $200 and one of $8 so once you finish surfing for the day and ensure that your account is classed as active you will earn the daily percentage on $208. If the daily percentage in this case was 4.5% you would have earned another $9.36 which would enable you to purchase a further 9 ad packs. Hopefully it is now clear how you can build quite a big income over a relatively short period of time.
Every day that you have cash in your cash balance you can buy more ad packs thus increasing how much you can potentially earn each day. After an ad pack reaches a certain value for example 130% or 150% it will expire. In the example above if the expiry rate is 130% our $200 ad pack will expire when it has earned $260 and our $8 ad pack will expire when it has earned $10.40.
In the next section I will look more closely at how compounding will do amazing things to your income
Paying out only from the profits is the secret to these sites as it ensures that they aren’t potentially insolvent and are not reliant on more and more money coming in every week. In addition the 10% that gets kept by the company goes into a reserve that allows them to pay bonuses on occasions and also ensure that the daily percentage doesn’t drop below a certain level. Profit share sites can also be incredibly flexible, as I said above each ad-pack expires at a certain level, for example 130% . The reserve allows the administrators to occasionally give bonuses to sites that are on say 110%-130 % . This has the effect of expiring a whole load of ad-packs and attracting further investment from the payouts thus increasing the daily profits and in turn the percentage payout.
There are other big differences to autosurf sites, firstly unlike standard Autosurfs your advertising packages don’t expire until they reach a certain percentage . i.e. 130% or 147% . So it is possible to miss a few days surfing and not lose money. Secondly and probably the most important is that you can withdraw your earnings every day. This enables you to compound on a daily basis. As a result over a 19 day period if a site averages a 2.5% daily return , you will earn more than an auto surf site paying 12% daily.
Questions or Comments
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