I wanted to post to you David's in depth explanation about tagvertisers to Ross Brennan.
Lets say Nissan puts out an Advertisement and uses the tags nissan, cars, altima, sale, 0% interest which 5 different people own.
1. OK. So, Nissan places an ad. They say they want this add to target 'nissan', 'cars', 'altima', 'sales', '0% interest'.
2. A member searches for 'nissan' in the search engine.
3. The ad appears because it targets 'nissan'.
4. The owner of the Tag earns commission.
5. Another member searches for 'new cars with 0% interest'.
6. Ads targeting 'new cars' will appear and this ad appears because it targets '0% interest'.
7. The owner of that Tag earns commission.
8. Another member searches for 'nissan altima'
9. Ads targeting 'nissan altima' will appear and this ad will appear because it targets 'nissan' and 'altima'
11. The owners of each of these Tags will split the commission.
So, you see, there are a few variables. What was targeted by the advertiser? What was actually searched? Do members own the Tags that were targeted? Do members own the tags that were searched?
It is very complex, but it will work. Each search is it's own specific transaction and we must compare what is searched with what is targeted to show the ad. After we show the ad we compare what is searched and targeted to what Tags are owned. Most times only 1 member will be paid commissions. Some times a few members will split the commissions.
If Nissan places an ad and targets 'nissan altima', 'nissan', 'altima'
1. A member searches for 'new nissan altima', then owner of Tag 'nissan altima' gets paid.
2. A member searches for 'new nissan', then owner of Tag 'nissan' gets paid, unless there is an owner of Tag 'new nissan'.
3. A member searches for 'new altima', then owner of Tag 'altima' gets paid, unless there is an owner of Tag 'new altima'.
This is why you should get VERY MANY Tags and make sure to buy variations. Don't just get 'nissan' or 'altima'. Also get 'new nissan', 'new altima', 'nissan altima', etc.
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Great explanation from our CEO on tag trading and values
Please read the entire conversation in Village Talk on this link:
http://www.tagvillage.com/villagetalk/#/20110501/who-plays-tag-ping-pong-546433/page3/
1. According to the TOS and Compensation Plan, it is CLEARLY spelled out that members of tagvillage do not OWN (exclusively hold the title to) any Tags. Instead, what is traded on the Tag market is a "non-exclusive, revocable right to buy and sell the right to use Tags at our website" along with "Tagvertiser Commissions when an advertiser is charged a fee for an advertisement targeting a Tag you own at the time the advertiser is charged". So, in actuality, AT ALL TIMES tagvillage owns the exclusive right (title) to all Tags. Our members own a non-exclusive, revocable right to trade the "use" of Tags and the related advertising compensation attached to that Tag.
2. It is more than reasonable to believe the "average" quality Tag will eventually be worth over $50,000 and very good Tags could be worth $1,000,000 or more. How can we determine this? Let's just look at one example. Say you have a Tag such as "bad credit car loan" that advertisers are willing to pay up to $12 per click to target. Now, say that Tag produces ads that receive 100 clicks per day. Here is a bit of math: $12 per click X 100 clicks per day = $1200 per day advertising revenue from ONE TAG! Now, at 20% Tagvertising Commission, that Tag generates $240 PER DAY income to the owner. So, here is a bit more math: $240 x 365 days = $87,600 ANNUAL INCOME to the owner.
Let me ask you a question. What would a Tag be worth that generated $87,600 ANNUAL INCOME to the owner?
As you stated in your response above, Tags could be "safer" investments than publicly traded stocks on the stock market. I am a student of some of the wisest stock traders in history. As a matter of fact, one of my favorite stock buying mentors is Warren Buffet. So, I would like to apply just one simple Warren Buffet strategy to the valuation of a Tag that generates over $87,000 ANNUAL INCOME (dividends) to the owner.
If Warren Buffet were looking at this stock from a value perspective in order to determine the buy-in value, he would approach it as if it were a interest bearing corporate bond. As a simple rule of thumb, Warren generally uses a 6% annual interest rate as a "safe bet" standard. In other words, the "safe bet" question would be this: how much would I pay for a Grade A Corporate Bond that paid 6% Annual Interest to the bearer? Here is the math: $87,000 / 0.06 = $145,000
So, in the end we come to the conclusion that the Tag "bad credit car loan" is worth $145,000 to the buyer. Of course this is assuming there are advertisers paying $12 per click and there is traffic producing 100 clicks per day on their ads.
The job at hand for tagvillage is to build the platforms that attract the members that generate the pageviews (traffic). We are not children here. We fully understand the task at hand. In order for tagvillage to reasonably compete with the major websites for traffic and membership, we must SLOWLY build a very high quality platform that delivers rich content that people will return to day after day. This does not happen over night. Most websites with millions of annual visitors have been building their content now for 10 or more years! We have only been online for 4 months. Therefore, we have a long journey ahead of us.
From that understanding, we decided it would not make sense to sell the original participation of Tags at their reasonable future value. How many members do you think would join tagvillage and trade Tags like crazy if we started them out around $50,000 each? My feeling is that it wouldn't be enough to build any momentum.
HOWEVER, if we allow people to join the site WAY AHEAD of the wave, AND we allow them to trade Tags starting at 0.10 and increasing by 30% per trade, we think there are about 20,000 to 30,000 people that would jump on board early and position themselves for greatness later.
So, it doesn't make sense for tagvillage to sell a share in a Tag that could generate $87,000 a year income to the owner for only 0.10 and then allow that person to exclusively hold it unless they felt the desire to sell it. We would NEVER be able to build the momentum necessary to attract the future members and future advertisers to make that Tag generate income in the future!
However, it makes PERFECT SENSE to sell these Tags at 0.10 and then let them naturally rise to their proper values as the site builds momentum, more members join and participate, and we begin to slowing introduce advertisers to the mix. This is a HUGE project. As I state over and over again, we aren't even beginning to start this project. We feel here at headquarters that we will be 10 years into this before we really start to see the momentum and reach that our competition enjoys today. Rome wasn't built in a day. Neither will our project.
I actually giggle every time someone complains to me about a Tag being "run up" to a price like 10.00 or 20.00 Credits. I shake my head and think to myself, "wow! I wonder what they will say when that Tag goes to 100,000.00 Credits!"
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This is a great interview from one of our Croatian members
Dražen Pavleković
Tagvillage interview with Jutrikus(just a member of tagvillage) :
Jutrikus : What prompted you to run a program like tagvillage?
Tagvillage : Our CEO, David Ruebush, and his wife Jennifer were dreaming of a way to help people. David had been working on some other website projects and was envisioning a social networking site and search engine combined into one site. One day, Jennifer came accross a site that had a similar idea to Tag Trading. This was the missing ingredient David needed to turn his idea into a way to bless others. From there, as they say, “the rest was history”.
Jutrikus : Where do you see tagvillage for 5 years from now?
Tagvillage : If everything goes according to plan, tagvillage will be pouring out millions of dollars on charities all over the world within 5 years. The mission, the heart of tagvillage is to lead the corporate world onto the path of tithing. Our company believes tithing is the most important thing any company or person can do when it comes to money management. We know if we keep our mission in front of our eyes at all times, we will accomplish amazing things. Afterall, our members will be the reason it is possible, and our members are people. tagvillage believes in the good nature and beauty of people.
Because of our belief in the good nature and beauty of people, we are building a unique Social Network. In 5 years we think this network can span the globe with millions of members who connect with each other on personal, meaningful levels. We also believe this network, made up of millions of good people, can change the world and make it a better place. So, in essence, we think great people all over the world will unite and build tagvillage into an amazing, vibrant social site and a powerful search engine. We build the software. Our members make the village.
Jutrikus : What do you think about the competition? Do you have competition now with a program like tagvillage?
Tagvillage : We love our competition. At tagvillage, we view Facebook, Google, Bing, MySpace, Twitter, and other sites like these as our competition. We are building a social network and a search engine, so it is obvious there are bigger, more powerful sites in both segments. However, we think this is a good thing rather than a bad thing. Our competition are the pioneers. They are the ones who forged ahead first. We can learn from them. We can grow from the lessons they teach us.
We are also very realistic. We know that tagvillage will never be as big as Facebook or as powerful as Google without our members. All we can do is build the software. It takes a village of great people to believe in tagvillage and make it truly successful. We have faith in our purpose to tithe and bless millions of people through charity and through each tagvillage business our members create. We know this will be the inspiration for people to spread the word and make tagvillage bigger and better than the competition.
Jutrikus : Do you sugest checking tag via KeywordSpy?
Tagvillage : The short answer is yes, and no. tagvillage is building both a search engine and a social network. So, when you think about search engines and the way goods/services are advertised on them, keywordspy is a brilliant tool. Our search engine will also allow advertisers to announce themselves through ads that are similar to the style you find on current search engines.
However, we are building a revolutionary new type of advertising we call Tagvertising. We do not want to reveal our methods so our competition will not duplicate our ideas. But, we will tell you that Tagvertising will be more personal, more targeted, more focused on social activity. So, we think as Tagvertising grows people will find different Tags are more valuable than a standard search engine style Tag. KeywordSpy is great, but we think Tagvertising will expand the boundaries.
Jutrikus : What is the total number of tags purchased so far?
Tagvillage : As of May 20, 2011 the total number of Tags purchased is: 234,946
There are BILLIONS of great Tags in multiple languages. So, this is not even a drop in a bucket!
Jutrikus : What do you think about the members of tagvillage?
Tagvillage : We love our members. Here at tagvillage, we believe all we can do is build software. We believe our members are the reason our site will succeed. We also think that the current active members are the people who truly believe in our mission. We know they are great people. We know they want to earn extra money from tagvillage so they can bless their own families. However, we also know they chose tagvillage as a vehicle for this extra income because it also blesses people in need. We think our members are amazing, wonderful people who have a good heart. We know that a village made up of this type of people can achieve anything.
Jutrikus : What do you think about the TSP, will it attract new members to tagvillage?
Tagvillage : We are not allowed to speak publicly about the Top Secret Project other than what is officially posted in the News Room on the site. However, we do know it will attract new members. It will allow tagvillage to appeal to people on a different level. Imagine this: you can buy a brand new Sony laptop for only $0.10 and at the same time benifit a charity with a donation of 10% of the RETAIL VALUE of the laptop. That is amazing! We estimate Top Secret Project will tripple or quadruple our membership in 60 days.
Jutrikus : How long have you been workin on the TSP?
Tagvillage : The planning and development of the blueprint for Top Secret Project has been underway for about 6 months now. The actual software design has been underway for about 3 months. We have a very large team of extremely good programmers. So, they are able to develop world-class software quickly. We also have an amazing development architecture that allows ideas to flow from idea stage to production in the most efficient manner possible. It is really cool to see first hand how tagvillage ‘works’ behind the scenes. There are some very brilliant people here and they work as an amazing team together. This is because they are all in it for the mission, not the software.
Jutrikus : Do you expect any mischief from programs like Google and Facebook?
Tagvillage : tagvillage is not a negative company. We choose to look past the negative in life and focus on the positive. When we see negative things like hunger or abuse or disease, we react by helping and giving. However, when we see negative business practices, we just keep our mouths closed and continue working with our eyes on our mission. So, we are not worried about mischief from other companies or individuals. We believe in the goodness of people and the greatness of our competition. Our CEO repeats two things around our office. These statements have become part of the core beliefs of tagvillage:
In the end, the truth always comes out.
When all is said and done, it will be our actions, not our words by which we are judged.
We have begun to understand what he means when he repeats these statements. So, we always focus on doing the right thing and saying only what is true. After all, when all is said and done, it doesn’t matter how many articles we write or webinars we do or speeches we make. It is the product we build, the ethics we practice, and the fact that people can see with their own eyes how we behave that will cause tagvillage to rise above anything that opposes it.
Jutrikus : What’s your next move?
Tagvillage : Right now we are focused on Top Secret Project. We must get it finished and implemented on the site. Then, we will grow this new marketplace and add many many businesses who are marketing products/services and Tagvertising. As that is cultivated, we will begin to finish the development of Social Networking, Search, and the Cause Platform. Once all of these are in place, we will implement the full version of the Tagvertising Platform.
We have at least a year worth of work before all the platforms are in place and functioning on a fairly competitive level. Then, we will begin to enhance each segment of the site. Our short term vision is that the next 3 years will be spent heavily developing and enhancing our platforms. We think the most ‘complete’ version of tagvillage will be functioning by the end of our 3rd year.
Jutrikus : And when will be TSP lounched?
Tagvillage : The target for the launch of Top Secret Project is the end of May. However, there have been some delays. Realistically, it will most likely be the first part of June.
Jutrikus : What can we expect when will be tagwire lounched?
TagWire is part of our social platform. We are developing the foundation of our social platform now. Full-scale development of the social platform begins in June. We are targeting the release of the social platform, including TagWire, at the end of July or early August.
Jutrikus : Will be there live chat on tagvillage?
Tagvillage : Yes. We plan to implement a very cool new approach to live chat. We are taking what has been done before with ICQ, Yahoo, MSN, Facebook, and Skype and developing our own brand-new twist on this. So, chat will be a very cool part of tagvillage.
Jutrikus : When will be Tagvertisers come?
Tagvillage : Tagvertising is the very last stage to be implemented. There is a solid reason for this. We want tagvillage to be at its maximum growth potential for membership. Once all our platforms are in place, membership should be growing very fast. Better still, new members will have an awesome amount of things to do on the site. That is the best time to bring Tagvertising on board. After all, it is our mission to richly reward our members with earnings. If we invite Tagvertising in too early, we may not be able to reward our members as much as we could if we invite them in at the maximum growth opportunity. According to our time-line, the Tagvertising Platform will be finished in development and implemented by the end of November or early December.
