I was shocked when my colleague told me that Adsmart or Adrevenue – a UK based ad network that Games2win had signed up has gone bust…taking along with it about 500 UK Pounds owned to us.
Shucks…. and hell…. how do we get our money back?
I believe this is the beginningof the darker side of the slowdown and the economic holocaust – companies we believe are doing OK suddenly slamming the door on their clients, employees and partners.
In the case of Adnetworks, this is a bad business case. These guys have surely collected moneys from their clients that ran campaigns on their publisher sites and then have used up that money to run their day to day business. They are now under receivership and we are supposed to deal with the official liquidators to recover our money.
In the meanwhile, the entrepreneur (Paul Qaurterman) has had the gall to launch a new company, claiming that he has received VC funding of 0.5 mill (which moron VC is this?) and even tells my colleague that if we start working with his new company, he will compensate 50% of his last companies payables! So, was this the way to demand a 50% reduction on payables in the first place?
Publishers beware – lots of small ad networks and media agencies are going to go up in the clouds – dont count your revenue till its in the bank.