Blue face doesn’t really get any reasons for what he says. Just makes assertions. When I claim site value should be de-linked from drops, he simply says “I disagree”. Ok….why? No reason is really given, he just disagrees. Likewise, when I say that tags should be used instead of categories, he says “Bad idea to remove the categories completely. Adding tags is a good add on, but it should not replace categories completely.” Why is it a bad idea? No reason is given.
I wrote a long reply, then realized I have something far more powerful: actual data.
- Based on current Ebay prices, 1000 credits is going for around US$5. You can see buy it now auctions for US$7 for 1,000 credits and the actual bidding is less than that. We will use $5 = 1000ec as the conversion rate. (You can move that ratio around a lot and it wont change the outcome of the demonstration)
- Entrecard and PW both sell the exact same inventory (125×125 ads) for the exact same length of time (1 day). Credit vs dollar comparisons will be very straight forward.
- I searched for sites which carry both PW and Entrecard, or have Entrecard and independent sales of 125×125 ads. If independent, I used a per day basis (month/30):
|Site||EC Value||Converted EC Price||PW Price||EC difference|
The lessons are simple:
1) assuming a site sells 125×125 ads for money and is on Entrecard, you are better off selling your credits on ebay and buying the ad on PW with cash. You come out ahead. We can quantify the amount by which the Entercard pricing system skews value: it is about 2600% for the top valued sites.
2) John Chow is losing $1000 a month by putting Entrecard on his site instead of 2 more 125×125 ads.
So of course Blue Face wants to keep the system. He is making out like a bandit.