CoG/HG business model

@Redgrave That is, in no small part, because our advertising service experiencing some serious cash flow problems.

In our ongoing efforts to monetize our games, we were first banned from AdWords/AdSense. Then AdSense bought AdMob. AdMob was brought under the umbrella of AdSense after about four months, and when the conversion was complete, we were blocked from any further use of AdMob.

Which brings us to MobClix, are current advertising partner. MobClix has been having financial trouble since early last year. They are supposed to pay using N90 terms (meaning, we get paid around August 5th for the month of April).

Their last missive stated that we were going to be paid for June on December 7th. That has not happened. As you may have noticed, that’s more than 60 days overdue (on top of the N90 terms).

Thus, while MC has not paid us for months and months, their system is still working. Part of their system allows us to run “House Ads”. Back in July, we started running House Ads. We can measure the number of clicks on the House Ads by game, and pay royalties to our authors based on those clicks.

We’re not paying as well as MC does (we recently upped the rate to $0.03/click, and may up it again soon), but unlike MC, we’re paying, and we’re paying immediately (payments for House Ads go out with the monthly royalty payments, about ten days after the close of the month).

Unfortunately, much as there was a big step down from AW to AM, and from AM to MC, there’s an even larger step down from MC to the next best advertising provider. And, for the time being, even though MC is so behind, we’re not quite willing to fully divest from MC in favor of something that may very well be no better.