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JBM:
First off, it is a huge pleasure to be interviewing you, but
instead of further ass kissing, let me start with some basic
questions. People are often surprised by your age, how old
are you and how long ago did you get started in this business?
MarcDe:
Its my pleasure to do the interview. I'm 26 years old. I got
started in this biz in early 1997. Its hard to believe that
its been almost 8 years now.
JBM:
What's your educational background? And do you feel that’s
helped or hindered you in any way?
MarcDe:
I have a high school diploma and approx. 50 credit hours of
completed college credits. I was attempting to major in business
administration. The real life experience I've gained from
performing in business far outweighs any education I would
have received. However, I'm sure many situations I would have
been more prepared for if I had gone all the way in college.
JBM:
I only ask this because i seem to remember you addressing
it on the boards before, but were you wealthy before ARS?
And if not, how did you deal with the amazing success of ARS
and all the benefits that went with it? Did you start buying
elephant man's bones or just took it in stride?
MarcDe:
I was no where near wealthy before ARS.
I grew up from a middle class home being raised by a single
Mother (however, my Father played a big role in my life).
The success of ARS and the benefits of it came very easy to
me. I lived very modestly for the first few years of success
but have increased my lifestyle dramatically over the last
couple of years. I wanted to make sure I was set for life
and could maintain any lifestyle I created for myself. One
of the biggest joys I've found from making money is being
able to give it to those who are in need. Philanthropy is
VERY important to me.
JBM:
What were some of the early problems you faced in this industry?
MarcDe:
This could be a very lengthy response but I'll keep it short.
Creating a profitable yet competitive business model was probably
the most challenging obstacle to overcome. Then once that
model was created, generating the proper marketing buzz to
get it to the masses.
JBM:
It seems from the minute ARS
took off, you've been the target of a small group of jealous
people, how have you dealt with that?
MarcDe:
I'm always fair in my business dealings. I think it would
be very difficult to find someone who dislikes me on the merits
of a bad business deal. The only reason I could possibly see
animosity towards me would be envy, which never does anyone
any good.
JBM:
You've made a fair bit of money, how do you keep yourself
motivated everyday?
MarcDe:
At this point in the game for me, its like playing monopoly.
Money is simply used as a measurement of my business success.
The more I obtain, the higher the score. Now don't get me
wrong, that is simply one of the tools I use to measure my
BUSINESS, not my life!
JBM:
Are payouts too high? Is it difficult to come out with payouts
that keep webmasters happy and don't drive you out of business?
MarcDe:
Payouts are very high, profit margins are shrinking everywhere,
but I believe that also includes the affiliates getting paid
'so much'. I believe the money is being spread among more
hands than before, thus making a smaller profit % for all
parties involved.
JBM:
With the increasing usage of pop up blockers and Microsoft
now trying to eliminate them, how has that affected your bottom
line?
MarcDe:
Exit income which usually equates to approx 5% of our income
has dropped significantly over the last 24 months and has
cost a few points in overall profitability, which is significant.
There are obviously ways around them, but it still hinders
the performance of monetizing exiting traffic.
JBM:
There's been a lot of rumors about Ibill lately, since you
do alot of processing with them, do you have any concerns?
Have you started shifting more business away from them? Should
people be concerned about Ibill?
MarcDe:
My single largest concern in this business is payment processing.
Unfortunately there is not a single individual in this business
that can change that front or make it more comfortable for
anyone. All you can do is 'ride it and see'. That said, I
believe iBill will make it out of this just fine. They have
a lot of talented people and a lot of faithful clients that
will help continue their years of processing and paying.
JBM:
What about credit card billing in general, are we heading
for a day when paysites have people mail in cash?
MarcDe:
If that happens this business is in BIG trouble and I do not
foresee it anytime soon.
JBM:
Exclusive content paysites vs. non-exclusive content sites,
which retains members better?
MarcDe:
I believe both retain very similarly. Its more about the volume
of GOOD quality content and how easily that content is accessed
that helps retain customers.
JBM:
What, if anything, went wrong with ARSRI?
MarcDe:
ARSRI was
no where near competitive. It was developed that and it was
a tool to get us from the transition period of 6-7 months
ago to where ARS
is going. We had to make some drastic changes to protect our
assets, we did that, and now we'll be back and be competitive
as ever!
JBM:
So ARSRI
was simply a transition from the old to the new? And if that
was the case, can you tell us what was so wrong with the old?
Was it simply not profitable anymore?
MarcDe:
ARSRI is
considered a transition because a number of events that I
expected to happen in this industry did not. Those assumptions
were based upon policies being made by billing companies and
events that were happening specific to ARS.
Those assumptions did not come true and we've found ways to
be competitive and profitable again in a model like what we
helped shape. Over the past few years ARS
has only spent its product development and innovation on the
affiliate side of the business. With a transition to a new
content partner we will use much of our innovative thinking
on helping that content partner create profitable innovative
products that offer different billing models and content delivery
methods.
JBM:
I tried squeezing some information out of your employees about
the new ARS
but they all fear you so much they wouldn't say a thing. With
the official launch on the 1st, what can you tell us about
it?
MarcDe:
All the information has been divulged. ARS
will consist of 42 paysites: 12 Reality, 10 Niche Video,
and 20 Traditional Niche sites all ran by Storm Media of Gibraltar
which is owned by my sister. This new content partner relationship
will allow us to be more stable and more competitive for years
to come.
The entire portfolio (outside of HSN which is a live amateur
cam site paying $25 per sign up) will get a payout increase
to $40 per sign up (NO MINIMUMS) and $35 console free or console
controlled.
JBM:
Besides ARS,
what other business ventures are you involved in?
MarcDe:
I'll simply list them:
DMA Food Group: 6 Restaurants / Bars
nXI: Hockey mask manufacturer
Downs Mfg: Custom Street Rod Manufacturer
Happy Puppy: Large commercial video game site
S2 Games: PC video game studio
I believe there are a few more, I just can't recall them :)
JBM:
Hows the video game industry treating you?
MarcDe:
Good :)
JBM:
How do you manage your time and keep from being overwelmed
by everything you've got going on?
MarcDe:
Surround yourself with talented people that can help you manage
business in their specific field of expertise and its a lot
less difficult than it may seem :)
JBM:
What's an average day like for you, can you give us a rundown
from waking up till you go to bed?
MarcDe:
Work, play video games, hang out with my family, play tennis
/ hockey :)
JBM:
I've seen the pictures so I know you own more than 1 car,
how many do you currently own and what's your favorite one?
MarcDe:
I currently own 16 cars and my favorite is my new 2005 Cadillac
STS
JBM:
Do you have any concerns about the new 2257 rules?
MarcDe:
Change is always difficult and a new 2257 rule will create
a logistical and paperwork nightmare for all companies in
our business. There is an obvious agenda with changing the
2257 rules and that is never a good sign, but if you do your
job and stay within the guidelines (which will be a lot of
work) than business should continue 'normally'.
JBM:
And to finish up, can you tell us why we should all be using
ARS?
MarcDe:
Every industry is full of competition, repetition, and imitation.
It is my belief that many of the programs you see today are
programs creating affiliate driven benefits derived from our
innovations. Rewards programs, high payout days, huge site
portfolios, BYOT, ultra high levels of service and support.
Now, just because many programs have used ARS
as a benchmark to create their programs is just a minor reaons
to use ARS.
The fact that we've paid out 9 figures to our affiliates over
the last 5 years, the fact that we've never missed a payment,
and the fact that we've made 1000s of affiliates profitable
should be motivation enough to use us.
Send traffic, see how we perform, and never spend another
minute questioning who you've decided to partner with.
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