Forum Moderators: martinibuster
Man, eaden, that has to be the quickest time from reading to posting ever. Thanks for being quick on the draw!
It is nice to now have a timeline of when cheques can be expected.
Well we already did... lets just hope they stick to this one :)
Also I think this email was sent to all adsense publishers so check your email.
due to engineering changes
Maybe they are upgrading to allow for direct deposit soon.
<added> >>Maybe they are upgrading to allow for direct deposit soon. <<
Possibly, it will be interesting to see if anything else changes in the AdSense account panel when the payments show up in payment history.
</added>
:-)
and cheques will be sent by end of next week.
Actually, it states "should be", not "will be". Only time will tell which one it is.
Will Google let their AdWords advertisers use that one?
SN
Seriously, though, in the many years I have been in business I have made thousands and thousands of payments to suppliers, using checks, money orders, wire transfers, etc. The only time I ever had trouble sending a payment was when there wasn't enough money in the bank. Late payments always result from cashflow issues - not holidays or tax calculations.
I have a hunch they are having trouble paying for the new Googleplex. Hence, lower EPC and late payments. Sergey has recently been quoted saying that the IPO was delayed because of concerns that competitors would gain insight on Google's finances. I wonder if he was also thinking about advertisers and publishers, as well as competitors.
Anyway, I think payments will come much more quickly after the IPO. Let’s hope that happens soon. In the meantime, my eggs are in as many baskets as possible.
I also don't think it had anything to do with the Thanksgiving holiday because that came too late in the month for it to have an impact on our payments if they were handled the same way they were in previous months. It's clearly technical and it's unlikely we'll ever know the full reason.
If a company can afford to pay its bills on time, it does. If it can't, it doesn't. Anyone who knows anything about business knows that.
Reduced EPC + late payments = problems.
Whether we like it or not, Google has cash flow problems. Let's keep that in mind when we are prioritizing our activities and anticipating our revenue. As far as I'm concerned, any checks from Google will be unexpected (and late) Christmas presents.
Sorry if I seem a little disrespectful. I just think there is some denial happening in this thread.
Do you have any information indicating that Google's revenue exceeds its expenses?
As a matter of fact, I do. Pick up a copy of the current issue of Fortune Magazine or read the cover story at [fortune.com...] and you'll see they are flush with cash but seem to have a lot of internal issues they are dealing with.
Where do you think they get the money to pay those checks? They have over 150,000 advertisers.
They are and have been making a profit.
How much is each advertiser worth? Well with overture - it's over $2,000 a piece.
Even if google is getting no where near that - that is still plenty to pay everyone.
Google is the most successful search engine ever. They would have to be building their new office out of gold and blowing money left and right to be low on cash.
Google may be disorganized, arrogant, evil, or whatever else people have said (and I don't agree with all of those), but there is ZERO to suggest they have cash flow problems.
PLENTY of companies that have PLENTY OF MONEY pay their bills late.
Umm, okay. Write 40 thousand checks and let me know if you have any technical difficulties. Or writer's cramp. C'mon, don't compare your personal bill paying with a multi-million dollar payroll.
I did, however, see several comments like this:
“Google has grown arrogant, making some of its executives as frustrating to deal with in negotiations as AOL's cowboy salesmen during the bubble. It has grown so fast that employees and business partners are often confused about who does what. A rise of stock- and option-stoked greed is creating rifts within the company. Employees carp that Google is morphing in strange and nerve-racking ways. And talk swirls over the question of who's really in charge: CEO Schmidt or co-founders Brin and Page?”
digitalghost, I agree that ddent’s suggestion might not have been the best solution to Google’s conundrum. I think that instead of writing checks by hand, Google could hire a guy (or girl) who knows something about accounting software. They could also hire a guy who knows something about hardware. These two guys (or girls) could get together and figure out how to make checks. Then, Google could call the post office. They would gladly pick up the checks and mail them. Problem solved! :>)
Chris R summed it up perfectly in my view.
I personally think the delay has to do with incorporating the tax reporting issue. If that is the case, this should have never happened because this is information that should have been obtained at the time of the original application into the program. I don't keep up with tax laws but I know that as of a couple of years ago, any payout of greater than $600 in a calendar year has to be reported to the IRS so Google was in violation with the first checks they issued back in July that exceeded that amount since they didn't have the requisite tax reporting info. from the payee at that time.
Anyway, all employers calculate tax deductions when preparing their payrolls. If Bubba's Convenience Store can do it, why can't Google?
Poor planning, pure and simple.
It would be obvious the number of publishers coming onboard would be increasing.
Similarly, the number having already now reached the magical $100 threshold have probably also increased, adding further to the work load.
Was the tax issue another factor? I don't know but if it was then that should have also been taken into account when planning ahead. Same for the public holiday issues.
Another factor? In any commercial organisation the "creditors" section is historically under resourced. On the other hand they throw money at debtors collection and sales. Fact of commercial life.
I don't think cash flow was a factor, failure to adequately plan ahead and provide suitable resources most probably were.
[added]
Loss of credibility was the end result. Suspicions are aroused. A high price.
Loss of credibility was the end result. Suspicions are aroused. A high price.
Right. A blue chip company cannot get away with paying its employees a week or two (or three) late. Imagine what would happen if Microsoft stopped issuing pay checks. Stock prices would dive and it would go down the tubes.
Any company planning an IPO wouldn't stop paying its bills without a good reason. There are just two reasons why Google can't print checks:
1. No technical expertise (Yah, right!)
2. No money
Imagine what would happen if Microsoft stopped issuing pay checks.
Not really... :) It would be embarrasing for MS, but the stock would not dive.
WHY IS THIS?
