Network demands 50 percent of revenues - I don't think so.

January 27, 2005

One of Mark Cuban's reasons to blog was to respond to the media. He was tired of being misquoted. He wanted to tell his side of the story. I have to do the same thing today.

I am extremely greatful for the press. They have been kind to Pheedo but this one got me. I am a regular reader of MarketingVOX and will continue. Actually, I met our CTO, Adam Kalsey, through them. Adam was managing their RSS discussion group. Today, they picked up on a story ClickZ wrote about our partnership with iUpload.The headline reads, "New RSS, Blog Ad Network to Take 50 Percent of Revenues". They end the story with, "The network demands 50 percent of revenues as compensation." Well, not exactly true.

Just a few comments on their summary of the story.

1. We are NOT taking 50% of the revenue. We take care of our publishers. They put a lot of work into what they do. iUpload and Pheedo split 50% of our share. So for example, if the structure said publishers receive 90% of the gross ad revenue, iUpload/Pheedo each recieve 5%.
2. We don't demand anything. The word demand is pretty harsh. First if you know me, you would laugh at that. I am not demanding. Aggressive yes, demanding no. Secondly, we have a lot of respect for our publishers and treat them as friends. Demanding is not in the Pheedo vocabulary.

If I were writing the summary I would not have used the word 'demand.' In my opinion, it paints an incorrect picture. The partnership is significant because we are making it easy for independent publishers to large media outlets create a revenue stream from their hard work. We are not demanding 50% of anything.

And finally, thanks Mark for setting the example.

Posted by Bill Flitter on January 27, 2005 8:48 PM
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