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Blog Icon Entrecard Economy Closed to Free Enterprise

Posted in Soapbox Rants, Promotion by Dave on September 29th, 2008

Entrecard Logo   If you haven’t been using EntreCard to promote your blog, you’re probably missing out on one of the best tools bloggers have to garner short bursts of traffic on a regular basis. Sure, there are detractors who will say EntreCard turns only traffic with a high bounce rate and most people visiting a site from EntreCard are only visiting sites to drop cards and earn credits. However, in my experience, regardless of how traffic is generated, whether it be from EntreCard, MyBlogLog, StumbleUpon or even organic SEO, there will always be a significant bounce rate and a lower percentage of visitors who remain on a site more than a few minutes.

That being said, my philosophy is “all traffic is good traffic” and for the most part, EntreCard does have a developing community of supporters who genuinely visit other community members’ sites and participate, not just bounce. If I can get one out of one hundred visitors from any traffic source to hang around long enough to read a few articles and leave a single comment or subscribe to my RSS feed, that’s a positive.

Now that I’ve given my reason for having the EntreCard widget on the sidebar of this blog, it’s time to get to discussing EntreCard’s “economy”, which is undergoing several critical changes that will impact the community. Here’s the latest update from EntreCard :

blockquote In order to continue operating in the long-term, Entrecard needs make some significant changes. These are summarized below:

1. Buy credits for less: Entrecard is now selling 1,000 credits for $6.00. You can buy them here: http://entrecard.com/r/buy_credits
2. More pricing increments: Instead of prices doubling every time, there are now a few more steps. The new price points can be found on the Advertising page in the wiki, here: http://entrecard.com/docs/doku.php?id=advertising
3. Members are not allowed to sell credits: This goes for ebay sales, posts in the Marketing forum, and posts on other forums. If you have references on your site to the sale of credits, please remove them immediately, as it is now against our terms.
4. Credit transfer limits: Members are allowed to make a maximum of 14 credit transfers a week, up to a maximum of 1,000 credits, whichever comes first. This means you can still run contests where you give credits away for free, and under 1k per week. Note: This does not affect linked blogs, you can transfer unlimited credits between linked blogs.
5. Transfer tax: From now on, all transfers, including transfers made with our new payments API, will be taxed at a rate of 12.5%. The taxed credits will be sold to members (see #1).
6. Blogs cannot be unlinked: Once you link a blog, it’s there for good unless you ask us to delete the blog from your account. This prevents linking/unlinking to get around the credit transfer limits, and it also stops you losing access to a blog if you unlink it in error, which happens a lot.
7. No more coupons: You are no longer allowed to send coupons.
8. Shop closed: Except for Entrecard upgrades (Featured Status, Fast Pass) the Entrecard Shop is now offline until further notice. Please do not request a seller token until the shop returns. When it comes back, it will be bigger and better. We’ll communicate more details nearer the time.

We really do believe that an economy with plenty of 3rd parties involved is a stronger economy overall, unfortunately just right now we’re unable to support that given the need to keep everything running. We hope that, by taking the steps we have, we will be able to reach a good balance between maximizing the overall benefits for our users and getting the revenue we need to pay the bills and expand the service. Hopefully, in the future, we’ll be in a stronger position with a more diverse income and we’ll be able to reintroduce independent credit sales and unfettered credit transfers among members.

We appreciate all the feedback we’ve had over the past few days on this topic, please let us know what you think by leaving a comment on our blog post here: Changes affecting the Entrecard economy

Thanks for standing by us while we make these important changes, and know that these changes will allow us to continue to make available to you the great Entrecard service that brings you more traffic, comments, and subscribers and better rankings.

I’ll play devil’s advocate here and bring my economics background into factor to question exactly how EntreCard feels that their credit system is in fact an economy? If you have any experience in the field, you know that for an economy to exist, free enterprise must exist. In #3 above, cutting off the free enterprise system by disallowing members from selling EntreCard credits amongst themselves literally devalues EntreCard credits alltogether. Can you imagine if any government said that citizens were no longer allowed to sell gold or silver and that all gold would be sold by the government alone? Free enterprise sets a market value for a commodity and a governing body controlling all sales of a particular commodity is not an economy, it’s a totalitarian state.

Transfer tax ??? While I’ve never bought or sold credits, nor have I ever had the intention of doing so, this announcement seems more based on greed than anything else. Considering the lack of free enterprise, a tax on a valueless commodity is essentially a handling fee, not a tax. One thing I particularly dislkie is overinflating of credit based systems and for all it’s worth, if EntreCard is going to be the sole distributor of credits, they have essentially become just another traffic exchange like TS25, Traffic Pods or Trafficera (all of which are very good sources of traffic).

Once again, I’m not a member of the EntreCard community for reasons other than to network and generate traffic to my blogs so none of these changes impact nor bother me. I am merely offering my opinion on these changes in economic terms and reiterating that for any economy to thrive, free enterprise must be a factor. I’m not the only one who thinks so, Jeff at Buzz My Blog has weighed in with his article, EntreCard Changing the Rules - Too Little Too Late? and Jude8573 at Beauty Denominator has been put in a bind by the New EntreCard rules regarding 14 transfers per week.

Possibly these changes are due to EntreCard’s owner, Graham Langdon trying to sell the site at SitePoint within the last week but most likely it is due to Graham feeling the stress of operating a startup venture on a shoestring budget.

If you have an opinion on Entrecard’s recent changes, please feel free to leave a comment.



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15 Responses to 'Entrecard Economy Closed to Free Enterprise'

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  1. fsmobilez on September 29th, 2008

    I have given up on Entrecard a while back because of too many Indonesian and Phillipine bloggers who have spam blogspot blogs with junk clouding the system.

  2. R.Garza on September 29th, 2008

    I agree with you that EC is good for a quick burst of traffic and to help your Alexa rankings.

  3. Tommy on September 29th, 2008

    I love using Entrecard to help my SERP’s, but have heard that traffic generators break the AdSense TOS. Does Entrecard break any rules?

  4. Chris Hutcherson on September 30th, 2008

    What’s been entertaining at times is to see the images bloggers use for their EntreCard. Some go for the male audience (you know what I mean), and others wisely make a grabbing headline - a strong advertisement. Eitherway, if it’s working for you - making you money - keep doing it.

  5. Sarah H on October 1st, 2008

    Fantastic post! I’m new to blogging amd posts like this help up enormously. I’m off to join EC. :-)

  6. Red on October 1st, 2008

    I had Entrecard for one of blog but way too much spam so I got rid of it.

  7. yenerich on October 1st, 2008

    How did you get spam from Entrecard ? I’m confused ?

  8. mlizcochico on October 1st, 2008

    strange thing are goin on w/ Entrecard. last blog post they made was try to get us to buy OIOpubliher in their ref link so we sell ad on our blog for EC credit?????

    What good do EC credits do if you can no longer sell them?? I want $$$ for my ad space not EC credits.

  9. antonio on October 2nd, 2008

    I never heard of this system before but I will now be joining if it really can get me some traffic. Thanks

  10. steve001 on October 3rd, 2008

    well before using this Ec thing i had a gud amount of traffic as well but alexa ranking bothered me great way but this EC thing really helped

  11. Johnnie Debt on October 3rd, 2008

    Entercards bring spam. I also had them on my blogs but it was terrible.

  12. Michael Grey on October 7th, 2008

    who have spam blog spot blogs with junk clouding the system.

  13. sports betting on October 15th, 2008

    I am big fan of entrecard. it rocks

  14. Dot Com Dud on October 17th, 2008

    The quality of Entrecard traffic for me has always been decent but then again I suppose my content must appeal to the Entrecard audience. I do think some of the changes being made are a bit odd and might not really help users in the long run but if it is truly what Entrecard needs to do to keep the site running, I guess I support it.

  15. Blackhatworld Rocks on October 19th, 2008

    I stopped using entrecard now. Tired to do the dropping everyday. No dropping, no traffic. I’m now looking for other way to generate traffic to my site.

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This is a dofollow blog, however, if you wish to have your comment approved, please use a human name and not something like "free hosting" or "adsense help" in the name field. I will no longer approve comments that are made solely for the purpose of building backlinks at my expense. ~Thanks Dave.








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