Glass ceiling for large affiliates?

[PhilF (ex-WhichBingo)]

Ory Weils from XL Media said the following in a recent interview with Becky Liggario;

"“It just doesn’t work, you really have to create quality assets or to really develop interesting technology that does something unique, have a competitive edge. I think the smaller players, they have a glass ceiling they can reach in most cases, but from then on, its probably better for this asset- or a network of assets- to be part of a bigger group that has the benefits of scale, that has the technology to work in scale”, he explained."

What do we think? Is that true, or is he simply bugging his company up to scare smaller affiliates into selling?

[MMM]

I think the first part is very much true. Second completely irrelevant.

[vardan]

I guess he was also a small player some time ago, when he started...

[Cash Bonus]

Hello everyone,

I think that the first part and the second part are very much true and completely relevant in my eyes. The reason being is that it all has to come together and to work together in unison and always to be united together. Thanks.

[DanHorvat]

As much as I hate to admit it, he''s right. Most people don't think in the Israeli dimension.

[MMM]

What do you mean in Israeli dimension?

[Cash Bonus]

What does that mean? The 'Israeli dimension'


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[Triple7]

Almost every message of these super affiliates is something like "Better sell your stuff to us or stop trying", but that doesn't mean he has no point here. He has.

XL Media has a different approach than for example Catena.

[DanHorvat]

Most people just take care of their own business, pay bills, hire workers, do things the traditional way, 1 euro is worth 1 euro.

Then an Israeli comes along, with some cash and support from his friends, and starts a stock listed company, calls himself a CEO, and comes up with a scheme that makes more money for the affiliate, makes money for himself, and makes money for the advertiser - at the same time getting a huge loan or investment from the bank or from investors who again make money on the stock price increase. Essentially, he made each 1 euro worth 10 euros, not only to himself but to everyone involved. 1 -> 10 is probably even an understatement, it's 1 -> 50 or 1 -> 100. Each 1 euro you put into this machine is worth 100 euros.

The Israeli dimension of thinking about business and about finance.

So, yes, the glass ceiling he's talking about is real and its existence is well known. Ory's way of doing business is the fast track and the rest of us are neanderthals. He just found a nicer way to say it.

[TheGooner]

Ory's way of doing business is the fast track

Ory's way of doing business is unsustainable.

We have seen it many times with big operator brands that over-promise, leverage to 1 -> 10, 1 -> 50 or more, on glossy numbers and hyperbole, and it eventually results in squeeze margins, shady practices, and financial misappropriation.

It doesn't make more money for anyone except the promoter who gets financial fools to part with money at unrealistic valuations.

[DanHorvat]

I hear you. But it's their way that rules the world, with the shady practices, unrealistic valuations and bubbles that are always about to burst. And yes, it always seems to rely on the money of the naive.

One thing I didn't say in my post above is that not everyone wants to be a CEO of a media company listed on London stock exchange. As a matter of fact, some people will actively lead their lives in a way that would steer them away from that direction.

April 14: Binary Options now added to Reef Media!

[RacingJim]

Some of the business practices coming out of Israel make me sick. Wolf of Wall Street all over again. It seems like the wild west out there - shame on any bookmakers who farm out their affiliate programs or business functions to there.

[Jokerman99]

Ory's way of doing business is unsustainable.

What is Ory's "way of doing business" and what part of it is unsustainable?

[yeahfree]

Glass can be broken, even if it's a ceiling. You can always rent expertise if you reach your own limits.

[Cash Bonus]

Yes. Certainly. You can always just rent expertise if you can't afford it and reach your own limits. It's different for everyone.

[Sherlock]

How to recognize an expert (with value) it is the top asset. Much more easily written than done.

[Miles_Videoslots]

I am a firm believer of the underdog and always will be. Small and competitive isn't a bad thing it's unfortunate that these goliaths have started taking over the market place but it doesn't mean there isn't space for you guys to still have your piece of the cake. Make sure you put out a quality product and do things that make you competitive and you'll still be able to have a successful business.

it's more difficult for sure and they have budgets that you may not be able to compete with but you most certainly can put out better products that people want to use and will.

There have been numerous cases through out History where the smaller guys have beaten out the bigger ones


]

From a Business point view here are examples of the "smaller" guys who went on to be Market leaders

Google vs. Yahoo! -
Hewlett-Packard vs. Dell
Apple vs. Nokia
Facebook vs. Myspace
Fox vs. CNN
GM vs. Toyota
Amazon vs. Barnes & Noble

[wonderpunter]

I am a firm believer of the underdog and always will be. Small and competitive isn't a bad thing it's unfortunate that these goliaths have started taking over the market place but it doesn't mean there isn't space for you guys to still have your piece of the cake. Make sure you put out a quality product and do things that make you competitive and you'll still be able to have a successful business.

it's more difficult for sure and they have budgets that you may not be able to compete with but you most certainly can put out better products that people want to use and will.

There have been numerous cases through out History where the smaller guys have beaten out the bigger ones


]

From a Business point view here are examples of the "smaller" guys who went on to be Market leaders

Google vs. Yahoo! -
Hewlett-Packard vs. Dell
Apple vs. Nokia
Facebook vs. Myspace
Fox vs. CNN
GM vs. Toyota
Amazon vs. Barnes & Noble

Especially when the goliaths put out genric tut built on backlinks but terrible content, I truly believe as Google matures these useless but aged sites lose importance

[FreeSpins74]

How is that fast track?
Ory started building his business over 10 years ago that I wouldn't call fast track.

Did Israeli's invent IPO's ? I don't think so. Are Catena Media Israelis ? No

[FreeSpins74]

"But it's their way that rules the world, with the shady practices, unrealistic valuations and bubbles that are always about to burst"

world domination? is this a quote from mein kampf or protocols of the elders of zion