Forum Moderators: phranque
Hi there,
I work for eFront Media, Inc, a pre-IPO Internet media company. We're in the process of expanding our network, which currently includes such sites as Skinz, BetaNews, NoNags, Jokewallpaper, and Mega Games. We have closed deals in over a dozen countries, multiple languages, and serve over 300 million page views per month. Yet, eFront is under two years old and is cash flow positive.You have a site that we are interested in adding to our portfolio, and we'd like to explore this option with you. The way we structure our deals includes performance based bonuses as the site continues to grow, plus we retain your services to maintain and update it as you are doing now. We are very hands-off, we allow communities that are in place to grow and flourish, but we're always ready to help wherever we can. Please let me know if you prefer the phone, email, or ICQ, and provide the appropriate contact information. We look forward to discussing a mutually beneficial partnership.
You have a site that we are interested in adding to our portfolio, and we'd like to explore this option with you.
Sounds promising, eh?
Then again (and from what I've heard), maybe not....
The way we structure our deals includes performance based bonuses as the site continues to grow, plus we retain your services to maintain and update it as you are doing now.
Anyone have any recent experience w/ these guys?
Sounds like a buy-out with employment to me. You know the saying about still water - so be careful...
BTW - thanks for the article this morning - more on it later
This site has never tried to submit to ODP
A search for eFrontMedia.com @ zworks.com is "not so good"
Must be using a banner driven model or running ads in the penny saver.
On the other hand, they may be fine folks.
[my 2 cents]
I'm very fuzzy on this (they haven't made any sort of presentation to me as of yet -I doubt they will), but I believe they structure the deal so that they only pay out after two years. In the meantime, you've given up the ownership of the site and it's conceivable that you could lose it entirely without ever being paid.
I'm wary -in fact, HUGELY skeptical. I've responded that I'm only interested in a straight buy-out w/ a transition to new management.
Other publishers might have more input on eFront.
>We have closed deals in over a dozen countries
Does that mean they've closed deals with sites participating, or "closed deals" with raising investor capital? When someone makes an investment, the salesmen call it "closing a deal." This doesn't indicate which they're referring to.
Rule #1 when "selling" venture capital investments - stay away from words like "guaranteed" and "deals" when pitching the potential investor. Using those words puts antennae up.
>cash flow positive
Where's the cash flow coming from? Is it coming from actual revenues/income overtaking expenses, or is the revenue coming from investors? Does the positive cash flow indicate profit?
Very important question: What's the "load?" 15% or less is considered fairly ethical, but many - TOO many - have a 50% or 60% load. Average is 20% commission for the salesman, which is not shabby at 20K a pop - plus overrides, bonuses, trips, etc.
Another question: Have they been paying out some sort of "dividends", and getting "reloads" - additional investments from their investors? One local company raised millions in 6 separate deals for 6 restaurants, and only ever put up 3, here in California. They paid dividents to investors on the first ones, who were more than willing to invest in "new" ones.
Ponzi scheme: Above paragraph
Players: People who like the exciting prospect of high returns on aggressive (spelled risky) investments.
Mooches: They keep losing, but keep on doing it, because they're addicted. Their wives should take their phone privileges away.
It can't be called a Prospectus, but can legally be called an Offering Memorandum. Reading through those can give some good clues, but never enough.
Keeps the SEC very busy in Southern California.
With all the sites that they've bought in the past with promises of stock options it looks like a lot of webmasters are going to go after them with a knife.
One good thing about being part of Efront is that you always get paid banners (CPM). Your site will never have to display default banners. Efront must have an excellent way of getting companies to advertise on their sites.
Here are some sites that I visit often that have been bought by Efront. Notice the ugly verticle banner that they MUST display.
www.emux.com
www.emux.net
www.arcadeathome.com
>webmasters are going to go after them with a knife.
>
In the days of VC money sloshing around, this probably seemed like a sure bet.
Edited by: rcjordan
You can bet that any company actually making a profit will say so, and in big letters. This is accounting double-speak.
sidebar: Are ICQ logs admissible in court? [news.cnet.com]
