Autosurf

Autosurfs are traffic exchanges that automatically rotate advertised websites in one's web browser. Therefore, they are capable of bringing a large amount of traffic to the advertised websites. Members earn credits for each site that they view, which can then be spent to advertise members' sites by adding them to the autosurf rotation. Sites may additionally be added by external advertisers who pay the autosurf operators.

Concept

Autosurfing is a unique form of advertising: normally, advertisers pay intermediaries to display advertising to their target audience, and the advertising is presented to the audience in places where they are likely to see it, such as in public places, or packaged with entertainment. In this sense, no money changes hands between the audience and the advertiser.

In comparison, autosurfers are paid to view pure advertising (that is, advertisers' websites) for a certain amount of time (usually, less than 30 seconds). Interested viewers can pause the surf timer or open any site in a new window, giving themselves more time to peruse an ad. If the viewer is not interested and does nothing, the surf timer will restart after the specified period of time and a new site will be loaded into the browser. The surf rotation requires no feedbacks of any kind; in contrast to manual surfs, paid to read email or paid to click sites.

Autosurfing allows members to promote websites of their own choice, according to a system of credits earned by surfing. Members usually earn credits in a fixed ratio to the number of sites they view. Member-promoted websites may or may not be their own websites. If not, they are most often the members' referral page at another autosurf or an online money-making program. This is because many autosurfs are structured as pyramid schemes: members may earn a commission for each site that their referrals view, and are therefore encouraged to build a downline.

As autosurfs are run from websites, online payment processors are used for members to upgrade and withdraw their profits. The most popular form of e-currency used is e-gold or e-bullion. StormPay was a very popular payment processor until February 2006 but has now converted to an auction site.

"Investment" Autosurfs

A large number of autosurfs are investment autosurfs: to earn money surfing, members must pay a fee and are then promised a certain return on their fee. The "investment" is claimed to be a membership or upgraded membership fee and the "return", a per-site commission.

In the case of investment autosurfs, members either pay a fee to join and/or to upgrade their account level. This fee can usually vary from a few cents to thousands of dollars, and the minimum and maximum is set by the site operator. The program then offers a commission based on the member's account level for viewing a minimum number of sites, for example, for a period of X days, every day that the member views Y sites, Z% of the upgrade fee will be credited and can be withdrawn from the site. The product of Z% and X is always over 100% to ensure that the member makes a profit. Members also have even more incentive to build a downline because further commissions are received based on the amount of money that referred members put in or earn.

The investment autosurf concept is against PayPal's Acceptable Use Policy [http://www.paypal.com/cgi-bin/webscr?cmd=p/gen/ua/use/index_frame-outside&ed=rich_quick] . Historically, Paypal has blocked most autosurf programs' accounts.

Controversy

A large amount of controversy is concentrated over whether autosurfs are inherently structured as Ponzi schemes. Traffic-only autosurfs that involve no monetary transactions can also be Ponzis if more credits are earned than page views available; older members are promised a certain number of website hits which can only be fulfilled by newer members joining. Due to the precedent set by 12 Daily, there is a strong possibility that most investment autosurfs are Ponzi schemes, and thus breaking the law and/or deceiving their users; whereas paid to surf sites usually had a viable business model where advertisers pay for the site to be viewed but not earn money in return.

On the other hand, autosurfs which require an investment and promise to pay a profit must, to not be a Ponzi, have other sources of income which can yield the high percentages they offer. Therefore, they often come under attack for failing to reveal their income sources or not registering with the proper authorities as a legitimate investment company. Ponzi schemes will end when no new investors are found, and it follows that autosurf sites have rather short lifespans, existing from one week to a few years depending on the popularity and "investment plans" offered.

12DailyPro

12DailyPro was one of the largest autosurfs in 2005. Promising a return of 12% daily for 12 days, funds invested went into the millions. In February 2006, autosurfs reached the United States national news when funds of members of 12DailyPro were frozen by payment processor StormPay [http://www.prweb.com/releases/2006/1/prweb329881.htm] .

Rather than focus entirely on StormPay, news organizations such as ABC4 (Utah) and WTOC (Georgia) investigated the autosurf itself. In a statement released by the Georgia Government Consumer Protection Agency titled "Pyramid Schemes Never Die; Just Evolve", 12DailyPro was closely scrutinized. Media calls to 12DailyPro owner Charis Johnson went unanswered.

Later in February, 12DailyPro was given a cease and desist order by the SEC, who claimed that 95% of the program's funds came from new members. On February 28, the SEC filed a proposed stipulation, agreed to by the attorney for Charis Johnson, LifeClicks, and 12DailyPro, that these parties would turn over all assets and records to a permanent legal receiver. [http://stormpay.com/SEC_v_Johnson_etal.pdf]

2006-Present

After the demise of 12DailyPro, many other autosurfs collapsed as well; this is widely assumed to be because they invested member funds into 12DailyPro, causing a domino effect. Subsequently, autosurfs have become less popular and are more widely believed to be Ponzi schemes. However, many still autosurf, either refusing to accept that they are Ponzi structured, or knowingly using this to profit (through attracting new investors to prolong the life of the program). Also, some autosurfs have begun to focus on the advertising side of their business model, by, for example, converting to manual surf or by paying members bonuses that are not dependent upon the advertising fee. They have introduced disclaimers on their sites saying that purchases are solely for advertising, earnings are payments for viewing advertising and that there is no guarantee of earnings. However, disclaimers do not override the law and thus do not legalize an otherwise fraudulent program.

Money invested in 12DailyPro is currently being held by a court-ordered payment receiver [http://tlennonfor12dailypro.com/] .

External links

* [http://consumer.georgia.gov/00/article/0,2086,5426814_38709348_49327187,00.html Pyramid Schemes Never Die; Just Evolve] Statement from the Georgia Governor's Office of Consumer Affairs
* [http://www.abc4.com/mediacenter/default.aspx?videoId=[e-mail],[e-mail],[e-mail],[e-mail]&navCatId=8&2=2 ABC4 News in Utah] Investigative video into 12DailyPro
* [http://www.tlennonfor12dailypro.com/ Current news from website of Thomas F. Lennon, a United States District Court appointed Receiver for 12DailyPro]
* http://www.10news.com/news/13422465/detail.html
* http://www.sec.gov/investor/pubs/autosurf.htmirefox add-on: AutoSurf and ManualSurf Traffic Exchange