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Adbrite's Site 404...

Discussion in 'Pay Per Click Advertising' started by oo9ncom, Feb 1, 2013.

  1. njfail

    njfail Active Member

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    #41
    AdBrite set out a notice to all their members letting them know that their service was shutting down.
    AdBrite was a very large company, and is not trying to scam anyone.
    They have had a number of troubles for several years. They recently hired a team from Yahoo to create a company-reviving plan.
    Basically, AdBrite had a lot of debt. Even though Advertisers paid them, a lot of their money was going to pay interest/investors. How investments in tech companies typically work is, at first they pay little or no interest (this makes sense, because they are a start up, and have little profits), then in the future, they pay huge interest rates to make up for the smaller interest rates earlier on.
    AdBrite was not making enough money to cover these interest rates, and their 'last ditch effort' was to hire the Yahoo team to revamp the company.
    The Yahoo team was not successful, or not successful enough, and AdBrite's investors 'pulled the plug'.
    SEMrush
    This is actually very common in capital finance contracts. Later in the term of the contract, if the company does not meet the benchmarks set by the investors, the investors gain control of the company.

    Rather than spending more money to keep the company running, investors decided to seize control of the company's "assets". With an ad network like AdBrite, the "assets" are things like, the domain name (which is why AdBrite cannot leave their page open for everyone, as the domain has been seized), IP address indexes, client contracts, etc.

    Most likely these things will be auctioned off, and "liabilities" (overdue payments to publishers are liabilities) will be paid off. However, you have to keep in mind, that it is likely that AdBrite's liabilities are more than their net worth. There is a hierarchy in which bills will be paid, I personally do not know how much money the assets will raise and if they will have enough capital to pay investors, publishers, and other liabilities.

    AdBrite has had investor conferences in the past, and they have explained some of these things.
    I personally never thought it was SO BAD that they would have to shut down..
    To point to another company that has had similar problems, StickAm is shutting down soon.
    AMD (the microchip company) has similar problems, but not nearly as bad as AdBrite did.
    AMD is a bit easier to find info on if you're interested in learning more about the general situation debt can get a company into, since they're a public company.

    I stopped using AdBrite a while ago, as they kept serving audio ads on my sites.
    In general, I don't think its something to worry about for most ad networks. AdBrite borrowed too much money, and it caught up with them. Ever since the 2008 crash, investors/banks don't really let companies leverage their assets as high. I definitely think they should have been more honest with publishers though. I got the 'we're closing down' message 2 days after they closed down.
     
    njfail, Feb 6, 2013 IP
    SEMrush
  2. browntwn

    browntwn Illustrious Member

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    #42
    The real question is did they continue to solicit and allow publishers to keep earning them money while they had no intention to pay the last couple months of payments. It appears from their actions that they did. Their is going to be a hierarchy of payments with the limited funds they have and, as of now, it would appear the publishers are going to get screwed.

    I have a bad feeling that all that will be left is an assetless shell of a company and nobody to get a financial recovery from. They will suck out all the remaining funds in salaries, bonuses, and repayment to investors while the publishers will get the shaft.
     
    browntwn, Feb 6, 2013 IP
  3. zpclxc

    zpclxc Member

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    #43
    Got a total of $1116 pending. We must find a way to get our money back.
     
    zpclxc, Feb 6, 2013 IP
  4. SlickR

    SlickR Active Member

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    #44
    People you can not get your money back, the company is bankrupt. Learn what bankruptcy means.
     
    SlickR, Feb 6, 2013 IP
  5. browntwn

    browntwn Illustrious Member

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    #45
    Maybe you should learn what it means.

    This is your second post declaring they in bankruptcy. Show everyone the court filing or stop posting since you do not seem to have a clue.

    A company has to file bankruptcy in a court, it does not mean just running out of money. Bankruptcy is a legal status, one that does not yet apply to Adbrite. Perhaps they will file in the furture, but if they did, then all their creditors, including Publishers would have a right to be heard in that court proceeding.
     
    browntwn, Feb 6, 2013 IP
  6. Freddy63

    Freddy63 Well-Known Member

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    #46
    I smell undercover
     
    Freddy63, Feb 6, 2013 IP
  7. oo9ncom

    oo9ncom Member

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    #47

    Yes I argee with you. They knew they are going to shut and they just sent out the email on the very last day.

    Stick to the point is. If we don't act it right now. many others will follow because there is no control for this kind of business.

    Previous thread, some people stated that they went bankrupty but I looked around the court orders website. there are no information about the Adbrite's bankrupty at all so at this moment I don't really think they went backrupt.

    Keep people in mind, we are not just acting to get the money back. Even at the end of the day, if we did everything and still not get the money. We still need react for this. There is no excuse saying not worth it and etc. What we are doing right, it is also protecting our future in the web market.

    Also, we don't need to file the lawsuit at this moment yet because this is a crime. Their intention proved to people that they were trying to "steal" from the publisher. (http://definitions.uslegal.com/d/deception/). If the authority prosecuted them, then we file the lawsuit to "try" to get the money back. In this way, we don't need to waste money or to find lawsuit to get half of the things done. If they replied to the court that they don't have enough asset to pay the their debt (including the publisher, we are the very last person to get our money). then they can go bankrupt.
     
    oo9ncom, Feb 6, 2013 IP
  8. SlickR

    SlickR Active Member

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    #48
    http://www.nysb.uscourts.gov/pgh/opinions/adbrite.pdf


    They are bankrupt. They have been in bankruptcy for a long time.
     
    SlickR, Feb 6, 2013 IP
  9. oo9ncom

    oo9ncom Member

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    #49
    200
    2003?????? So you are saying, they went bankrupt on 2003 and company still operation until 2013 to get shut down? Why they not just shut it down on 2003?

    If you are the company owner, why would you leave the company open like this, why not simply open a new one and scam the people again.
     
    oo9ncom, Feb 6, 2013 IP
  10. browntwn

    browntwn Illustrious Member

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    #49
    Wrong again.

    Only two problems with that. First, it is a 10 year old case. Second, and more importantly, that is not the same AdBrite. This company was involved in a different business entirely:

    The AdBrite we are all talking about:

     
    browntwn, Feb 6, 2013 IP
  11. Freddy63

    Freddy63 Well-Known Member

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    #50
    That's Adbrite Corporation, We're talking about Adbrite INC.
     
    Freddy63, Feb 6, 2013 IP
  12. oo9ncom

    oo9ncom Member

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    #51

    Don't need to reply him, this guy have no knowledge at all. trying to stop us? telling people they would not get the money back. Actually we should ask digitalpoint forum to pin this thread at the top, so more people to join us. Digitalpoint should do us a favour cos they are also a internet website company. Part of us
     
    oo9ncom, Feb 6, 2013 IP
  13. njfail

    njfail Active Member

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    #52
    I agree with you guys, but just to clarify a small misconception;
    It is possible to be in bankruptcy for several years (decades even). There are several different types of bankruptcy, one is a 'restructuring' type, where the company is basically put on a payment plan. It allows the company to continue functioning in an attempt to 'restructure' itself and become a successful company again. This type of bankruptcy prevents creditors from seizing assets and delimits some debts, but does not 'wipe the slate clean' like other forms of bankruptcy.

    I just wanted to clear that up (not that it has anything to do with AdBrite). I worked at a bankruptcy law firm for several years :)
     
    njfail, Feb 6, 2013 IP
  14. digitalogy

    digitalogy Member

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    #53
    fact is; when the adbrite owner is really bankrupt, and not just shutting down one of his many companies, then no one will get any money.

    this is not illegal, to deny all payments, when the company owner is really bankrupt, but it's illegal to operate the business with the knowledge, that the company can later not pay all the partners for performed services, such as ad serving.

    the owner of adbrite "saw the end coming" already many months ago.

    to close the door, in front of all partners, this is really illegal and can be sued by the court, but anyway, when they have no money, then it's also useless.

    P.S. i also, had a pending payout before adbrite disappeared.
     
    digitalogy, Feb 7, 2013 IP
  15. gelboy

    gelboy Member

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    #54
    As others have said, AdBrite did not go bankrupt. They simply stopped operating. But doing so without paying publishers what they were owed over the last 3-4 months, that is where they stole from us.

    If the situation was this dire, they should have stopped operating 6 months ago, paid people what they were owed and no one would care. To send a notice days before and the pull your entire website to make it go away when you have invoices from months ago to pay?!?

    For the record, they did not so much as send an email on BlackLabelAds, only AdBrite. Not even one email to people you owe money to for several months before entirely pulling the website. And even in the AdBrite email, no mention that payment cannot be made, will be made at a later date etc. Just leave thousands of publishers in the dark. They left us holding the bag and took off like bank robbers on the run.
     
    gelboy, Feb 7, 2013 IP
  16. aassociatehit

    aassociatehit Well-Known Member

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    #55
    This is not the first time any advertising company did this there were many before closed without any warning and did not paid at the end and since they already closed their operation and I am pretty sure they will get some lawsuit filed and they must be prepared for that as well, they were big company and must be aware of all these things.

    But are these lawsuit really going to help others to get their payment ?
     
    aassociatehit, Feb 7, 2013 IP
  17. oo9ncom

    oo9ncom Member

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    #56

    Read the thread before you reply, like I said before. Even at the end if we don't get the money, we still need to do it.

    "This is not the first time any advertising company did this"

    Thats not the reason to telling people not to complaint. Get the fact right, what you are trying to say, its not the first day this is happening so we just need to forget it. Let it happens and happens again.

    Your logic is completely wrong. Even they got some lawsuit to help. So what? But I don't think they didn't do a good job. The easiest way is to go backrupt right away. In that way, they definitly can get away with this.

    But now, what is happening? a notice to shut down? no payment were made for 3 months? During that that 3 months, they were still in operation right? Their intention were trying to not pay the money, those money belong to the publisher. This is obviously breaking the law.

    Also, let me repeat it again. Adbrite is big company. They shouldn't do this. If no one act on it, many others will follow. This is going to be a nightmare. No one ever will get pay.
     
    oo9ncom, Feb 7, 2013 IP
  18. Freddy63

    Freddy63 Well-Known Member

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    #57
    oo9ncom is right, we must make this an example for other companies. We must show them if they try to do what Adbrite did to publishers, we'll get them to court. Adbrite should be an example for companies in the future trying to scam publishers like this. They will think twice before closing without paying publisher earnings.

    If we however get our payments in the process that's a bonus.
     
    Freddy63, Feb 7, 2013 IP
  19. st1905

    st1905 Well-Known Member

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    #58
    From Adbrite Tos,

    Subscriber agrees that (i) any payments that may become due to Subscriber (as described on the Site) are specifically conditioned upon Company's receipt of full payment from the applicable advertiser, and that any such payments do not become due to Subscriber until 60 days after Company's receipt of full payment from the applicable advertiser, and (ii) if Company does not receive the applicable payment in full from any such advertiser, or Company’s payment from advertiser is later reversed at any time, Company may debit Publisher’s account or reverse or stop payment on any payment previously made to Publisher in respect of such advertisements, and Company shall have no liability or responsibility to Subscriber (and Subscriber hereby releases Company) with respect thereto.


    They also owe me money but I don`t care any more, company is gone, its finished, I can`t just waste my time on this.

    Do you guys ever read the TOS ?

    There are lots of reasons for them to avoid paying the publishers. Get over it. Move on.

    and for the adbrite`s 404 disappear issue

    TERMINATION. Either party may terminate the Services at any time by notifying the other party by any means. Company may also terminate or suspend any and all Services and access to the Site immediately, without prior notice or liability.

    see ? its all in the tos.
     
    Last edited: Feb 8, 2013
    st1905, Feb 8, 2013 IP
  20. aassociatehit

    aassociatehit Well-Known Member

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    #59
    you are living on illusion do you think they have not thought all these consequences and what I am trying to say they must have some reason to get away with this as you can see in their TOS as well

    Moreover people like us who work for few $$$ think have enough time to fight and enough money or resources.

    It might be easier for you to write but its not easier in practical and as you said they are big company so they must have a full proof idea about not paying and escaping with everything, I doubt they are not aware how publisher will react and they must have though it already how to deal with it


     
    aassociatehit, Feb 8, 2013 IP
  21. oo9ncom

    oo9ncom Member

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    #60
    TOS is TOS, they can write whatever they want. breaking the law is breaking the law. TOS doesn't mean they can do everything.

    aassociatehit,

    illusion? We all know this world is fxxked. Is that mean you have to surrender?

    This is fuxking stupid for what you are saying, They are big company so we cannot confront them?

    Also are you trying to tell us we should never fight with the rich/power. This is why you always living at the bottom. You don't have the nuts to do anything against people who is richer than you. Such a shame.

    Everybody know this world is full of unfairness. Is that mean we need to sit down and let it all happens?
    Ask everyone in this forum, we are not just hoping for the money. We are trying to tell the fxxking bxxtards to not to repeat it again. NO matter how tiny we are, we still fight for it.

    Im sure everybody in here know we probably wouldn't get anything or adbrite's CEO probably siting infront of the computer, reading this and laugh at us. But so what? Is that mean we need to give up and not even dare to do something about it?
     
    oo9ncom, Feb 8, 2013 IP