Conclusions

The valuation conclusions are based on AGLOCO reaching two million users in a two year time span:

A user who has no referrals should receive ownership in AGLOCO worth on average about $150. (plus monthly cash distributions)
The average value of an AGLOCO user’s referral network should be $30 each in ownership shares plus the referrer’s share of monthly cash distribution.
The average AGLOCO direct referral should be worth in excess of $3,000 each (see example below for details)
The analysis also shows a range of monthly cash distributions of between $5 and $15 a month per user.
The AGLOCO business model looks theoretically sound – (assuming they get to a decent size quickly - at least 500,000 users within nine months to a year)



The cost of recruiting new users to AGLOCO can vary. For many users it is simply sending an email to friends or contacts – or talking to them directly. For others it is blog postings or website notices and for some users paid ads on search engines. The privacy and anti-spam policies of AGLOCO and the track record on these issues of Ray Everett-Church (AGLOCO’s Chief Privacy Officer) makes the risk of getting spam, pop ups and other trash as a user a non issue.

In general, given the low level of work needed to recruit new users to AGLOCO and the zero cost in terms of money, the cost/benefit ratio of recruiting new users to AGLOCO seems to be highly favorable. Because there is no limit as to the number of referrals a user can recruit, the upper end on this opportunity could be high (which means it can be worth putting in the effort to promote actively). This analysis was done two weeks after AGLOCO launched and there have been user postings noting referral networks of 4,000 and 5,000 already. At $30 value each this would be $120,000 to $150,000 so far, which means AGLOCO could make some serious recruiting users a high return on their efforts.