February 21st, 2007 by haroldbbbg1619  http://haroldbbbg1619.wordpress.com/

 

 I have read that question more than once on comments around the Internet.

 

Seems we have some Capitalists among the Revolutionaries. Well it is an Economic Revolution, so I think the Capitalists are in the right place, at the right time and are asking the right questions.

 

With ALGOCO there are two distinct different forms of payment for two distinct forms of member effort.

The two efforts are:

 

1. Being an AGLOCO member – using the Viewbar and generally being a worthwhile Internet economic ‘person’. (Looking at ads, downloading software and buying things online.)

2. Being a builder of the AGLOCO network (this means referring new members to the system.)

 

The two payment types are:

 

1. Cash – monthly (PayPal, checks, e-gold, direct bank deposits, Amazon dollars etc. – member picks his favorite least cost payment type)

2. AGLOCO Ownership – accumulated hours earned over time – earned directly and with referrals.

Here is how I analyze these things

 

Cash – (below are my opinions)

 

• I believe this will be very small amounts during 2007 slowly growing over time.
• I think that the ‘affiliate’ revenue sharing for people who do shop online will be the biggest source of cash to those people.
• AGLOCO must pay its operating cost (as small as they probably are) before having money to pay members
• Over time this should grow to more than $10 a month for the average member.
• Builders will just get more of this.

 

Member ownership

 

• This all members should be accumulating starting with the first hour of viewbar usage.
• Valuation of this I have blogged about with my six part Simmons Report series. – (but using the Simmons Report $150 over a two/three year period is a value that should be reasonable.)
• How to sell these hours before AGLOCO is a public entity is a worthwhile question. My guess is that some enterprising member will set up a marketplace to buy and sell hours (like they buy and sell airline miles – big business in that I searched on Google and got 94,000 pages about it. This market would provide the cash some people would prefer today and a huge potential upside for those members who think AGLOCO will be a breakout winner.
• AGLOCO’s website says they will use part of their profits to buy ownership from members.
• Builders will just get more of this (much more) – The Simmons Report uses an average value of $30 for each referral – of course this will be more for early referrals and will only have any value of the Viewbar is used by the referrals.

 

The question of who would buy ownership of AGLOCO is a very simple question.

 

The answer is anyone who buys stock in any profit making corporation.

 

The Simmons Report does a nice job of outlining AGLOCO as a profit making corporation. If it paid out all its ash to members, then the it would be more like a club than a company. By making and retaining profits, AGLOCO can become an attractive Internet growth stock. Google sells for almost 50 times its annual earnings (and anyone who bought the stock when it went public has made 5 times their money so far. Yahoo sells for 60 times their annual earnings. This is because people believe it will make even more money in the future.

In order for AGLOCO to achieve the high 20 to 60 times earnings valuation, in my opinion, at some point it will have to stop (or severely slow down) the giving of new ownership to all its members. Maybe only give away annually not more than 5% - 10% of the company (which is called dilution in the stock market world).

 

My personal choice of who would buy AGLOCO has already been stated – Microsoft. They desperately need a way to catch up to Yahoo and Google on the Internet. AGLOCO might represent just the way to do it. Go Bill Go.