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Shoemoney Sells AuctionAds

written by John Chow on July 27, 2007

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TechCrunch reports, and Shoemoney confirms, that AuctionAds has been sold to the owners ReviewMe and Text Link Ads, Media Whiz International.

AuctionAds could go down in history as the fastest growing ad network ever started – it went from zero to 25,000 publishers in just four months. The only problem was the shoe didn’t have the manpower or the experience it takes to handle customer service or the payment systems for a network of that size.

We basically came to the realization that we had to make a choice: AucitonAds/ShoeMoney Media Group INC could bring in a staff of people, train them and all that (which we had ZERO experience in doing) OR we could sell the company to someone who already has tons of experience in that area and can take AuctionAds to the next level.

Neither Shoemoney or Media Whiz would disclose the price paid for the ad network. AuctionAds isn’t making any money yet because it’s still pays out 100% of its eBay money to its publishers, according to TechCrunch.

Are You Making Money With AuctionAds?

I have to wonder how many publishers are making money with AuctionAds. The reason I ask this is because I’ve signed up 300 affiliates to the ad network and I get 2% of whatever they make for the next six month. So far, I’ve $61.67 in affiliate revenue. That means my entire network of 300 referrals earned a grand total of $3,083.50, or $10.28 per publisher. This isn’t per month either. This is since AuctionAds started.

If you’re running AuctionAds, I would love to hear how it’s doing for you. I would test it out but I don’t have any ad space for it at this time.

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{ 92 comments }

Miqu July 27, 2007 at 5:34 pm

From porn site to parenting site. Auctionads are everywhere these days :???:

a video a day July 27, 2007 at 6:55 pm

they take in anyone who signs up. that’s one of the reasons how they can grow so fast

car news guy July 30, 2007 at 6:43 pm

And that’s why I love them!

BlogaDollar.com August 1, 2007 at 12:50 pm

Shomoney seems to be a very intelligent guy. When will I be able to sell such a successful company? Perhaps never.

But I’m blogging now and if it becomes more popular, perhaps I will sell it. :o)
If you want to see my daily progression:
BlogaDollar.com
Greetings from France John.

Thomas De Maesschalck July 27, 2007 at 5:46 pm

I’m giving AuctionAds a try on my personal blog but without much success. Little earnings and I also noticed they had quite a lot of downtime this month.

a video a day July 27, 2007 at 6:56 pm

i think i will give auction ads a try, even though my friends told me that it’s a waste of time

Mybloggo July 28, 2007 at 9:14 am

Not only waste time also waste my space

car news guy July 30, 2007 at 6:44 pm

Depends on your site. I wouldn’t expect them to perform too well on a “Make Money Online” site.

Wallace July 28, 2007 at 9:17 am

yeah, i also haven’t tried AuctionAds, and actually it seems not a nice money maker.

Harry Potter 7 July 30, 2007 at 5:37 am

I repeat, is for big sites, or do u think than a blog with 1000 visits will have visitors than want use money for buy products?

car news guy July 30, 2007 at 6:45 pm

Huh? Is that Harry Pothead?

Zac Johnson July 27, 2007 at 7:49 pm

Same here on the downtime. That and their stats tracking has been terribly off this month. My numbers are dismal vs. last month’s earnings.

Eric July 28, 2007 at 1:05 am

Nope not so far, also started it a few weeks ago.
The Only thing I made is 5 bucks, but this is because Reviewme declinde my application and sent me to auction ads with a bonus of 5$.

But they only payout from 10$, so still 5$ to go

Help!!!!! :grin: :grin: :grin:

Mybloggo July 28, 2007 at 9:16 am

I also have $5 Bucks inside but not real money……..

Harry Potter 7 July 30, 2007 at 5:36 am

I think is better for big sites like engadget

SavvyFrugality July 27, 2007 at 5:47 pm

:cry: I tried AuctionAds very briefly, but took it down after a few days. Why? Because the merchandise shown in the AuctionAds banners didn’t match the format of my blog, which is about frugal living and saving money. Some of the items featured in AuctionAds were selling for hundreds or thousands of dollars…not exactly a fit with a site about saving money. The biggest problem I’m facing with my blog right now is I’m having a hard time attracting traffic. I’m not really sure how to go about luring people to my site.

a video a day July 27, 2007 at 6:58 pm

good targeted content

mason July 27, 2007 at 5:53 pm

I can’t say that I’m surprised. I bet he got a good chunk of change from that deal though.

Matt July 27, 2007 at 5:55 pm

We have made $295 since starting just around when AAs started up.

a video a day July 27, 2007 at 6:59 pm

that’s a impressive figure

john has only made sub70 after all

Mybloggo July 28, 2007 at 9:21 am

Matt,How u make this?Can give us some tips?

Matt July 29, 2007 at 6:24 am

I applied the little keyword code for the ads so that it pulled in the category of the post to be the keyword for the ad. This makes things very specialized to the current audience.

You have to watch that those as multiple category keywords can create a combo that returns nothing from AAs and so they plug it with some irrelevant.

Our best month so far was May with a little over $150, then $50 in June, and sadly in July our sales completely flatlined for the second half of the month, leaving us at $25 so far.

One thing to watch is that you don’t want to give up too early. We’ve had dry spells and then suddenly a $17 day here and a $25 day there. Best tip though is to use the keyword specific code that looks at your WP category.

Angel July 27, 2007 at 6:26 pm

Auction ads is good in theory, but in practice, you have to get people to convert — not an easy task.

a video a day July 27, 2007 at 7:00 pm

it’s so true.

that’s why we don’t make much money out of it

Chris Stark July 27, 2007 at 7:29 pm

For every month I’ve made the minimum $10.00, they’ve paid me immediately on the 1st directly into my paypal account. I have nothing to complain about that, exceptionally prompt. Text Link Ads is great for that as well, they always pay right away…

Dog Information July 27, 2007 at 6:29 pm

I wonder how much he sold it for? It had to be a multi million dollar deal.

a video a day July 27, 2007 at 7:02 pm

same here, i also would like to know the new plan for auctionads.

Mybloggo July 28, 2007 at 9:27 am

If auction ads have any new plan…..Johnchow will inform us.Rite?

car news guy July 30, 2007 at 6:46 pm

Maybe auction ads will inform you?

Bryce July 27, 2007 at 6:40 pm

A lot of people I know say that they haven’t been paid through AA.

a video a day July 27, 2007 at 7:03 pm

maybe it’s because they’ve not made the minimum payout

Mybloggo July 28, 2007 at 9:24 am

I think half of the publisher of AA haven’t been paid cuz not made the min of payout!!!

The min payout is only $10 :grin:

Bart Dabek July 27, 2007 at 6:43 pm

:twisted:

I haven’t seen a dime… I’ve sent them 1000s of clicks and my reports never went above $0… so naturally I took them off and never looked back…

J.D. July 27, 2007 at 6:51 pm

Auctionads hasn’t gotten me anywhere on a few of my other blogs. I think it’d do much better on something that was more product-oriented though.

MillionDollarJourney.com July 27, 2007 at 6:52 pm

I tried auction ads for about 2 weeks, and got $0 from it. Maybe I didn’t put enough effort into it.

FT

simon July 27, 2007 at 6:57 pm

Zero :cool:

Egonitron.com July 27, 2007 at 7:06 pm

Ditto, I’ve earned a grand total of $0 so far. Hopefully Patrick and the crew can step it up.

MrBeachBum July 27, 2007 at 7:14 pm

This was the goal all along I’m sure, and good for them! The buyers, I’m certain, will know exactly how to turn a profit on this long term and that can benefit all of us. I just started testing AuctionAds on one of my sites and I can’t say I am too impressed yet but I do think there is long term potential. The only surprising thing to me about this is the fact that Ebay didn’t buy them first.

Michael Kwan July 27, 2007 at 7:26 pm

It comes in massive spurts. I’ll have several days with big fat goose eggs and then all of a sudden, I’ll have one day for $15 or something.

Chris Stark July 27, 2007 at 7:26 pm

I’ve been using AuctionAds since they started, and I think my total revenue on the one site I’m using it on is about $250. It’s not too bad, and people really like the ads and click them a ton.

The biggest problem is that they are basically CPA ads, so people need to actually purchase ebay items for you to get paid.

The good thing is that when they click, it does set a 30 day cookie, so sometimes you get people who make ebay purchases later in the month and you get a cut.

I bet these ads would kill if you could somehow target a very “pro” ebay community, like people who constantly make ebay purchases. Even if they didn’t buy what your ads were showing, they would probably buy something within 30 days which would pay off for you…

Steve's Tech Blog July 27, 2007 at 7:28 pm

With 8000 impressions and 18 clicks, I made $0

I will give it a chance in case they can better target my sites. Those are 3 very different niche(tech, movies and 1 naughty blog(funny adult toons) ;) ). Maybe the change of ownership will make it a better system. If not, off they go.

Mybloggo July 28, 2007 at 9:31 am

If it happen to Adsense maybe you could earn more then 10-50 USD

Yup i will giving a try to Auction Ads after the change of ownership for A month if still no earnings……I will say “Bye Bye”

Matt July 29, 2007 at 6:28 am

Here are our data points:
1091393 impressions, 12514 clicks, 1.15% CTR, $295.72 earned.

It’s going to take a lot more than just 18 clicks. Try getting more targeted with your keywords.

Steve's Tech Blog July 29, 2007 at 6:45 am

Do you put the code in each post thus more relevant keywords or is it in your template like me?

I will play again with my keywords.

Hatmoney July 27, 2007 at 7:32 pm

I run AuctionAds in my other two websites(not in English), and the ads were displayed more than 3000 times per day with some clicks, but I got no money from it. Maybe AuctionAds only work for those sites in English.

Zac Johnson July 27, 2007 at 7:47 pm

It was only a matter of time. I wrote up on AuctionAds quite often and how it performed. I am hoping with the entrance of MediaWhiz, the network only gets better. My earnings for this month are nearly half of what they were for last month. They need better stats tracking and server management.

jason July 27, 2007 at 7:55 pm

I use auction ads. I just started making sites in January so I am very new. In the last month and a half. I have made a little close to $400.00. I hope that this does not change. If it does I’ll just go and Use commission Junction. Is this a good plan? For some reason I make nothing from Google adsense but A lot (in my opinion anyway from AA).

Edgar July 27, 2007 at 7:58 pm

:evil: i ALSO use AA and after so many clicks I have earn 0.00

James Pegram July 27, 2007 at 8:30 pm

It’s done something, nothing to retire off of and nothing like what Zach gets from it. I think AuctionsAds will be like any CPA type deal, it will heavily depend on your topic and your traffic.

Angel July 27, 2007 at 8:43 pm

So what’s the future for AA? Anyone got any gossip?

Starboykb July 27, 2007 at 9:23 pm

I just made a $5 for sign up only. Other $0 :lol: Although there are impressions and clicks with somebody interested on the bids. Anyway, doesn’t work for me.

Angel July 28, 2007 at 1:31 pm

Me too! $5 so far. Better than nothing… I guess.

Josh July 27, 2007 at 9:33 pm

I started it on March 14th and I’ve made $184.67 up ’til now. There are many days though were I make nothing. It has averaged about 40 bucks a month. My site is a Jimmy Buffett fan site, so AuctionAds is a good fit. I’d still like to see it making more though.

Darron Beetge July 27, 2007 at 11:39 pm

I made nothing from them either :sad:

Seduction Tutor July 28, 2007 at 12:14 am

Unfortunetly, my site doesn’t gives me any valueable income from AuctionAds… Probably I should test it on another type of traffic.

Does anyone knows what traffic converts better with AuctionAds?

Amar goel July 28, 2007 at 12:15 am

25,000 publishers in 4 months is amazing. It seems like publishers are really trying to find the new new thing out there to monetize content better.

Mybloggo July 28, 2007 at 9:36 am

If the idea is good everyone will giving a try(Just Like Me) and maybe they offer $5 Bucks sign up bonus if you are a Reviewme Member …. :grin:

Tony July 28, 2007 at 12:33 am

I’m making about 2500 – 3000 a month from 5 different sites I have it on. I found once you bump up the minimum price shown on the ads then you reap a much better reward. Its simple to use and has paid out unlike the many others I have trialled.

Fable July 28, 2007 at 12:40 am

Wow. I wasn’t even aware that he was trying to sell… Oh well.

Steve

Colin Klinkert July 28, 2007 at 12:53 am

Why Steve, interested in bidding? :twisted:

If i was shoe I would have expanded the operation and started taking a % of the income before selling it as im sure Media Whiz will, but maybe they offered him a deal to good to refuse considering it is a startup with no revenue and only a few months old?

Johan Cyprich July 28, 2007 at 2:41 am

I’ve been thinking of using AuctionAds on my blog as oppoosed to the Amazon ads (which haven’t generated any income). I would prefer selling consumer electronics or software in an ad that changes for every post. I haven’t found any affiliate that does yet.

I like the comparison shopping ads from TTZ Media. Hopefully they will be available for affiliates soon. :)

Scott July 28, 2007 at 2:56 am

They seem to work pretty well on a lot of product-based sites, and I’m quite happy with their returns on Straight to the Bar.

HMTKSteve July 28, 2007 at 2:57 am

My AuctionAds performance is different than my other advertising methods. AA may go days earning no money and then I’ll have a $50 day.

I think the reason for this is that most people time their auctions to end on the weekend. Because of this my Mondays are often my biggest earnings days.

I think my best month so far has been above $100.

Mybloggo July 28, 2007 at 9:40 am

How you make it?

Can share with Us?

Aibek Esengulov July 28, 2007 at 5:19 am

I have nothing to say but would like everyone to know that I was here.

Mick July 28, 2007 at 5:24 am

I use AA, started on May 23rd and have made $236, the down side to that is low ctr – granted the ads are filling non premium space and Ive not put much effort into it.

The other point is about AA not making money. I mentioned this at DP. How are they not making money? Yes they pay me 100% the same as ebay would but they have an overall network of 25k so the sliding scale of ebay payouts works in their favour. So they pay me my full share but AA as a network receive a higher payout due to the volume.

From ebay
“Our tiered payment structure rewards increased performance. In other words, the more traffic you drive, the more you’ll earn for each transaction or new active user.”

Nomar July 28, 2007 at 6:48 am

I earned 3 dollars from em

Mike Panic July 28, 2007 at 7:22 am

I’ve made around $15/month from them, placed in the dead spaces of my blogs, nothing amazing. I’m an ebay affiliate and make much more from cj.com directly using the ebay tools, which is what I will probably continue to do

bweaver July 28, 2007 at 7:46 am

That’s pretty quick for a buy out. Personally I have made very little from AuctionAds, but to be fair, I haven’t really done much to tune my use of them.

-bill / bweaver.net

bob cobb July 28, 2007 at 8:27 am

Im not a huge fan of auction ads, but congrats to Shoe for the sale.

Mybloggo July 28, 2007 at 9:45 am

Me too

Latest cell July 28, 2007 at 11:48 am

another niche to earn money

Hannes Johnson July 28, 2007 at 12:17 pm

I’ve been testing AuctionAds on my blog and I haven’t made that much… it’s probably better for more product oriented sites (like tech sites, cars, etc.)

HogWild July 28, 2007 at 12:48 pm

So far in July I’ve made $104.70.

For me this is good because I do NOT have a product site. It’s a humor site. So my audience visits to laugh, not to buy.

But my goal is that while they are laughing, they get in a good mood, look at the offers and take out their wallets!

I’ve tried many types of CPA programs. For me, Auction Ads convert the best.

I’ve been following John Chow’s advice of constant experimentation… and I think I’ve finally found the best way to optimize Auction Ads.

-gary July 28, 2007 at 1:21 pm

I’d give someone over there a call John. I signed up through the link the day you put it up and I’ve made over $1,300 off of AA and that will be up over $2,000 when this month pays out. That’s on about 1.8M impressions and 20,000 clicks for those that are interested.

Before anyone asks, I don’t run a blog, I run a forum for Kawasaki motorcycles. Perfect fit for me. Lots of people buying replacement and upgrade parts all the time.

One problem I have with AA is their reporting. Right now my account show that I’ve earned around $1,500 total, yet my payouts are greater. I have the PayPal receipts. It’s not their so called “bonus” either because I got that one time the first month and never again. I’ve watched my commissions accumulate through the month, payout and then be adjusted down by as much as 60% less than what they were. This all happens after the month is closed. For July, I’ve been downloading my daily stats so I can see exactly what’s going on.

My stats are also everywhere from $0 days to $125 days. Seems strange to me that I can have zero sales in between a string of days that get over $50, but there is nothing I can do to find out why.

The biggest problem I have with them has to do with their display of ads and their non-response to my questions about it. I liked what I was seeing with them, so I decided to raise them up to around 30K impessions per-day. somewhere after 15K or so, the unit just stopped displaying anything. I wouldn’t even get the default PS3 and iPod ads. I mean nothing but a blank box would show up. I emailed them a couple of times about it and never received any reply. I just cap them at 15K per day now and I haven’t noticed any blank ads, but I don’t have the time to check in to make sure they’re displaying or the ability to know that a visitor saw an actual ad. It sucks, but at least it still works some. For now anyway.

Eric July 28, 2007 at 3:37 pm

Jeremy probably sold at the right time – 25,000 publishers is a lot of support and the network really needs a lot of TLC. Not to say he could give it the attention is needs – it may not be what he wants to focus on.

Michael Fultz July 28, 2007 at 4:10 pm

It’s another opportunity for website owners which is a good thing.

Dave Starr --- ROI Guy July 28, 2007 at 8:06 pm

I see I am not the only one who has noticed very poor server performance. Shoe made a blog post essentially taking pride in the single point of failure server they were using … no system or geographic redundancy.

I wrote Jeremy privately pointing up some issues and even recommending a solution or two which I know would help … not even a return email … “we know it all” in other words.

I hope the new owners can finally run it as a venture to succeed rather than struggle along.

I ran the ads in place of 4 mediocre-performing AdSense skyscrapers on 4 low-traffic blogs. The ad targeting seemed good but a lot of the merchandise that showed up was, (as is usual with eBay) totally cr*p products that I would throw in the trash rather thna try to sell to someone.

During 60 days of serving their ads I delivered roughly as many clicks as the same sites delivered in the preceding 60 days to AdSense. Total for the four sites wiht AdSense is typically in the $xxx per month range. Total, complete AuctionAds payout? $0.00. that’s rght, not a _single_ conversion.

In addition to the crap merchandise being offered (not AuctionAds’ fault, but a fact of life) my sites frequently failed to get served by the AuctionAds server, leaving unsightly blogs of java error message in their place.

Bottom line? The day I replaced the AdSense in its original optimized posiitons, the first paying AdSense click came through in less than 3 minutes.

I think the problem is much more eBay’s than AuctionAds … there are a lot of people on eBay that are raiding trash cans and listing the drek they find in the auctions so it seems to me, server issues aside … that it’s a typical GIGO situation … great idea, wrong vehicle to use it on.

vbnotebookfor.net July 28, 2007 at 10:35 pm

On some of my sites Auction Ads beats Adsense earnings by at least 4 to 1. These are semi-static sites that have in-depth information on high priced products that people usually come to as a result of a long tail search. People see what they’re looking for on eBay and click. On others, such as the one linked here, Adsense and Affiliate Offers do better.

My only complaints with Auction Ads are the downtime and the showing of ads that don’t match my keyword. On those days the earnings decline a lot and even the Adsense on the same pages shows a drop.

I hope the new owners get these glitches fixed up ASAP. I also hope they continue to allow people who don’t have one mega-traffic web site, but a network of smaller ones, to use it. I would hate for it to become an exclusive, hard to qualify for, thing like Text Link Ads or Review Me.

Random Good Stuff July 29, 2007 at 3:24 am

I use Auctionads and I am pretty surprised how little they convert.

We are running the site Lastminute Auction and have a lot of experience with the Ebay Affiiate Program and how well they convert. But for some reason 50 clicks through Auctions Ads are different compared to 50 clicks we generate through our site to Ebay’s Affiliate Program directly.

ForumeR July 29, 2007 at 3:27 am

I just got USD15 so far from Auction Ads since 1 month ago from i started, so that’s good for me :) But is it really good it has been sold now?? Just wait and see

Best regards
:)

Harry Potter 7 July 30, 2007 at 5:35 am

Textlinkads is the best ads service

TeamTutorials July 30, 2007 at 5:37 am

Auction Ads has never performed for me. I have tried it on several sights and am not impressed. It does have a lot higher CTR then my other programs, but it doesn’t convert well.

kenny July 30, 2007 at 10:17 am

I think one of the fundamental problems with AuctionAds is optimization. Instead of having users enter in cryptic codes to manipulate what the ad shows, they should have included them on their website so you can check off a few boxes, enter in minimum and maximum prices, then click “Generate Code”.

With that said, once you match the ads with the users on your site, it can work quite well. I started off only making aout $30 – $40 for the first two months, but in the 3rd and 4th I am now averaging closer to $175 per month.

Hopefully with MediaWhiz they can add some new features to make it easier to use to help everyone make more money.

Charles Online Review July 30, 2007 at 7:15 pm

I haven’t had any income from Auction Ads as yet. Probably my site is still new?

But I heard from my friend who is making a hundred or two a month with it.. There is nothing much difference he has made, but probably because his audience is probably much more targeted since his blog is about fun things, attracting younger age group who probably uses ebay often.

ForumeR August 1, 2007 at 12:26 pm

I think because of it still new, but just let the as over there, don;t take out yet, let see after Google update PR for this season :)

Geiger July 31, 2007 at 7:38 am

John, you said that Auction Ads does not make any money. I think you couldn’t be more wrong. While they pay out all that an individual has earned, they don’t pay out all that AuctionAds has earned. I tried blogging about it here.

http://www.jaygeiger.com/index.php/2007/06/20/how-auction-ads-works/

The only thing that my blog post does not take into consideration is the payout of 2% of a person’s commission for 6 months. But of course, that could never be more than 2%.

xd1 July 31, 2007 at 7:52 am

The guy above has it all wrong. When auction ads got to the 75% tier they payed 75% not 55% So your math in your post is completely off. As are your assumptions. The 2% came out of you commission and was kicked to your referral. How do I know this? It was discussed on shoemoey’s show. For the recored I am not a shoemoney leg humper actually I think his whole handeling of this on the DP forums is crazy, but at least get your facts straight. :roll:

Geiger July 31, 2007 at 11:24 am

Happen to know which episode he says this in?

xd1 August 1, 2007 at 1:13 pm

I don’t remember it was sometime in the last 2 months (June, July).

Online Fraud Prevention August 1, 2007 at 11:14 pm

Auctionads work very good for niche sites. I made 84$ in one day. Sometimes you can also get 0$, even if you have 200 clicks. It’s very relative.

Click Input August 16, 2007 at 10:01 pm

It’s just a pity that AuctionAds has since gone to crap, my earnings have been cut by 300%.