Killing Community: Graham Langdon, Entrecard

Graham Langdon, self-described as a 23-year-old college drop out intent on making money, has it all figured out. In 2007, he adopted the business model originally developed by BlogRush, which is best described as a defunct throwback to “Web 1.0″ affiliate schemes.

His solution was to develop Entrecard, which was originally a free "business card" ad swap network based on a credit system. The model has recently undergone dramatic changes after several failed attempts to secure venture capitalist funding and no takers when he attempted to dump the company for $100,000. (Several buyers told me the latter was more of a publicity stunt to establish equity than a serious intent to sell.)

The new model attempts to monetize what once was a free service by exchanging the credit system with real currency, and with Entrecard keeping 25 percent on the blogger's side of the transaction. Ever since, not all has been well in the land of Entrecard.

Trading community in for cash.

If there was any reason Entrecard survived BlogRush, it was because, just below the surface of what seemed to be a junk traffic site, there was some semblance of niche communities, especially among mommy bloggers and craft blogs and personal bloggers. No "A list" bloggers, mind you, just regular people who blog.

The new cash model trades down that community, because advertisers do not have to reciprocate with Internet real estate. It is much easier to spend $25 without any participation whatsoever than to participate under the new rules. That is, for now. At the same time Entrecard is opening the network up to advertisers, it is imposing rules on the original community that made Entrecard viable.

Dropping quality ad real estate for fairness.

Originally, the first placement rule was that the Entrecard widget had to be placed "above the fold" until the decision was reversed after push back. Not to be deterred, however, Entrecard launched a variation of the rule based on the pretense of "fairness." Unfortunately, crowd sourcing "fairness" is only as good as the most intelligent participants. In this case, none of placement restrictions consider the obvious; the program can never be "fair."

• Quality sites will always benefit advertisers with more traffic than inferior sites.
• Less ad competitive sites will always benefit advertisers more than ad heavy sites.
• Load time is much more signifiant than where an advertisement is placed.

Ask most media buyers and they'll tell you that it's better to own a page toward the bottom of a fast-loading quality site than for it to appear at the top of a slow-loading low quality site filled with ads. However, some suspect that there is another benefit to imposing the rule all together. Entrecard can now exempt many members from a cashout service, which would allow them to covert old credits into cash.

The service, which is being delayed until after the rule is imposed, presents several logistical nightmares in that Entrecard is attempting to justify exempting members from the service under the old Terms Of Service, while deleting their accounts for violating a rule created in what will be a new Terms Of Service. And, since Entrecard has since placed a cash value on credits, some consider its actions theft or, at minimum, another taxable event to go along with the credit to cash conversion.

Communication breakdown is commonplace.

In terms of communication, the entire conversation continues to be grossly mishandled. Most Entrecard participants had no idea the rules would be changed until they received a warning that they would be suspended if they did not comply within 72 hours. When members complained, the network pointed them to a post on the Entrecard blog, as if it was required reading.

What did not occur, like many network developers forget, is that most members do not read the network blogs. Communication, especially when it involves changes to Terms of Service (TOS), requires being proactive instead. And, in the case of Entrecard, its own TOS states it's required: "Entrecard reserves the right, at its sole discretion, to modify or replace any part of this Agreement. In such an event you will be notified four days prior via the email address associated with your user account."

This is not the only time Entrecard has broken its own rules. Advertisers were recently surprised to see the service arbitrarily double ad rates overnight. The only notification advertisers received was after the fact, with the justification that the network doubled the cash balance listed in everyone's account (and here we thought only the government could create money).

Add to this all the other problems associated with the program, and its anyone's guess what will happen next. One thing for certain: some advertisers are miffed to learn that the promise of targeting a specific category does not work. Currently, if you select a category on Entrecard, the category selection is confirmed, but advertisements are placed network wide.

Sustainability seems to be in question.

The net result of Entrecard's quest for cash seems to be aggravating an exodus of better bloggers. The departures began approximately six months ago.

While Langdon claims traffic has never been better, the truth is that Entrecard is becoming what people labeled it to begin with: a junk traffic site. Except, you have to pay for it. He doesn't mind. After all, bad publicity is good for business he says.

"A lot of people have this crazy misconception that bad publicity is actually bad for internet sites. Why just yesterday, we got a slew of bad publicity when we banned an Entrecard member for harassment and trolling," wrote Langdon. "Everyone was twittering about it and blogging about it, and tons of people were coming to Entrecard. Look at what happened to our blog’s traffic ... It doubled!"

Right. And more people will look at you on the road after an accident. Just ask Domino's.

What other members and former members are saying:

WTF, Entrecard Pt.II at Simply Saying

Entrecard Hoolabaloo at Vinallaseven

They’re Takin Your Booty Mates at Recycled Frockery

Entrecard Announcement at The Dirty Shirt

No More Entrecard at The Sofia Valeria Collection