A couple weeks ago we told you about a pre-launch company called AGLOCO that seemed to be the rebirth of bubble fiasco AllAdvantage. Well, AGLOCO has gotten in touch with us to defend itself from affiliation with the pay-to-surf flame-out. The company admits the AGLOCO team does include two AllAdvantage alums (including privacy guru Ray Everett-Church). They also say, if all goes well, AGLOCO will launch in both English and Chinese on Monday.
The angel-funded team of 15 is led by eight current Stanford Business School students, and yes, the plan is to “develop a content-agnostic system where people can actually monetize what they do on the internet,” says AGLOCO founder Akshay Mavani. In Mavani’s telling, the problem with AllAdvantage was its negative cash flow, which had the company paying users out of its venture capital funding while it buckled under the stress of growing from zero to 800 employees in a year.
AGLOCO, to play it safer, will only pay users when it has revenue. The management will pay its bills by taking a 10 percent fee. The hierarchy of the pyramid scheme will be less dramatic because, as we previously reported, users will be capped to five referral levels. These checks and balances are going to make it harder to jumpstart a user base, but at least they’ll maintain some kind of sanity.
Mavani says AGLOCO is also different because it plans to diversify its revenue streams by including sponsored software and services and affiliate fees, in addition to highly targeted advertising. While it’s currently subsisting on an undisclosed amount of angel funding, the company has begun the process of going public on the AIM in London as an alternative to raising venture capital.
When we asked the company founders about the divisive response our last piece on them had provoked, they quoted an adage back at me: “If nobody’s saying bad things about you, you must not be doing anything important.” We’re sticking by our initial assessment of the company — Bubble, bubble, toil and trouble! — but it’s good to hear a little bit more about how they’re thinking this through.