This is the dollar value per share.
ANE = AGLOCO Net Earnings. According to US Census Bureau of the Department of Commerce, the total retail e-commerce sales for 2006 is a whoping $114.2B. If you build it, the revenue will come!
This ratio will either make AGLOCO members happy or caused them to jump off the wagon. It really comes down to the ratio between the amount of revenue and the number of members. Once Agloco is officially released, how big of the pie do you think Agloco will claim from just these two sources of revenue? Interestingly enough though, the more AGLOCO subscribers which accumulates outstanding shares the more revenue AGLOCO gets.
ANE = $230M - 10%($230M) = $207M
OAS = 1.2 million members * 1710 shares = 2,052M shares
Therefore:
EPS = $207M / 2,052M shares = $0.10
Our member on this example if he decided to sell his shares at the current market value, he will make about $171 (EPS x 1710 shares). Did you know that Google pays as much as $0.10 on average for each search that is directed to its search engine? That will give AGLOCO a $230M per month gross revenue. A big chunk of that dollars goes to search engines. They also stated that "As AGLOCO™ grows and the company generates positive cash flow, we will be distributing the excess cash to Members and shareholders of the company." They also put a limit of 5 personal hours of surfing a month which means you can only get maximum of 5 shares per month if you don't have any referrals. That will give AGLOCO a $1.15B per month gross revenue. Not bad for something you started for free and become a part of what could be potentially the next big thing on the net.
From the example its obvious that your earnings will be directly proportional to AGLOCO's net revenue but inversely proportional to the number of members that accumulated shares. In about 5 months it has approximately 1.2 million members and its growth accelaration is close to phenomenal (check out agloco-top-gun.spaces.live.com/).
Here's an example to give you an idea on the potential earnings you can make.
The examples and calculations that I will show you are not the exact calculations that AGLOCO uses, only AGLOCO knows that and besides it will make everything complicated. Montly revenues for commissions is about $952M ($11.42B/12 months). By using Agloco viewbar you will be directed to these search engines. This is the outstanding number of shares accumulated by all members.
Assumptions:
The OAS will be base on total number of shares accumulated by 1.2 million members. You can go crazy on the numbers or you can go conservative or you can even go skeptical but you have to choose one so you can make a decision if you want to jump in this new online van wagon. How?
ANE = $575M - 10%($575M) = $517.5M
OAS = 1.2 million members * 1710 shares = 2,052M shares
Therefore:
EPS = $517.5M / 2,052M shares = $0.25
Our member on this example if he decided to sell his shares at the current market value, he will make about $427.5 (EPS x 1710 shares).
Example 3: For The Skeptics.
Lets assume OGLOCO did not do so good and only claims 10% of the $2.3B total revenues. Assuming on average each member will accumulate 1710 shares a month which can be accomplish in many combinations such as having 4 direct referrals and each refers an average of 4 referrals upto 4 levels down and assuming each person used the max limit of 5 hours of surfing hours a month (check out AGLOCO member calculator).
Just to give us some numbers to work on and to make things simple, we are going to use the total revenue from just two sources the commissions on retail sales and sponsored advertising. However, I will assume that these calculations I will show you will be the backbone of how to determine the value per shares.
Lets start and put on our thinking cap...
According to AGLOCO™, "If shares are issued they will issued at one share per hour for Member hours and one quarter share for each referral hour". Simply put, the revenue has to climb at least twice as fast as the number of subscribers for AGLOCO to be really attractive and make the buzz in this industry.
My advice is, dont' worry about the revenue just worry about accumulating shares by increasing your network. Assuming (and I think I am being very conservative) that 10% of those sales are payout as a commission.
ANE = $1.15B - 10%($1.15B) = $1.035B
OAS = 1.2 million members * 1710 shares = 2.052B shares
Therefore:
EPS = $1.035B / 2.052B shares = $0.50
Our member on this example if he decided to sell his shares at the current market value, he will make about $855 (EPS x 1710 shares). Not bad at all considering that the revenue came from only two sources, so this will definetely increase if all the possible revenue sources are included.
Example 2: For The Conservatives.
Lets assume OGLOCO did good and claims 25% of the $2.3B total revenues. maybe 2%? One way to have a piece of this big chunk and actually get paid using the search engines is by using Agloco. In 2006, from the numbers shown above, roughly a total of $23.52B revenues just from these two sources. AGLOCO was launched on November 2006. That is $11.42B commision payout given to affiliates and referrers. Conversely, if outstanding shares increases your earnings will decrease assuming revenues stays the same. That will give AGLOCO a $575M per month gross revenue. This number is also projected to grow in 2007.
According to Emarketer, the online advertising revenue for the first 9 months of 2006 reached roughly $12.1B. So building your network is very important and will dictate if you will have a descent or substantial income in this venture.
So here we go..
EPS = ANE / OAS
Where:
EPS = Earnings Per Share. This is the total revenue of AGLOCO minus management fees of 10%.
OAS = Outstanding Agloco Shares. These means that, if revenues increases your earnings will increase assuming outstanding shares stays the same. How much do you think goes for commisions? Montly revenues for advertisements is about $1.34B ($12.1B/9 months). 1%? Agloco will earn a commission for directing traffic to these search engines and will in turn raise its revenue thus increase your share value.
Commissions and sponsored advertising dollars are two of many revenue sources of Agloco. That is a total of approximately $2.3B of revenues per month just from just two sources.
Example 1: For The Optimist.
Lets assume OGLOCO just exploded and claims 50% of the $2.3B total revenues. Continue ...
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