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Vinefie is a lie

Thursday, May 14, 2009

Q1: Where will Vinefire get the money to pay everyone?

Postby The Architect » Mon Apr 06, 2009 2:29 pm
In a nutshell:

Vinefire has always planned to be acquired by a larger company.

The purchase price of this transaction is expected to be well into the millions of dollars (US).

Upon selling Vinefire, we will pay out all member earnings from the proceeds of that sale.

More details:

As many of you have stated. We don't have the cash on hand to pay out everyone today.

That is 100% correct. That was never part of the plan for Vinefire.

The worth of Vinefire is growing rapidly: with every new member that joins; with every link that is clicked; with every vote that is cast. Every day Vinefire is growing in value and becoming a more and more desirable asset for a larger company to purchase.

The earnings listed in your account represent a projected value...basically "your share" of Vinefire's worth. This value is determined for each member according to their activity level and those numbers are run through our Business Valuation Model.

The earnings figures may have to be adjusted up or down depending on several factors, but we have done our best to accurately portray the earnings of all members to this point in time.

As mentioned above, the goal of Vinefire has always been to be acquired by a larger company once we grew a large, dedicated member base. When a larger company buys us out, we will use the sale proceeds to pay out member's earnings and keep the remainder as profit for the founders.

That is why we set the original payout date of January 31, 2010. We expected that was enough time to grow Vinefire big enough to sell it.

Then we heard the cries, "A year out! Oh no! I can't believe it! It's a scam!"

Many members didn't realize that the first payout date was that far off...and when they found out, they got scared and lost trust.

We made some mistakes along the way, and that's one thing we would change if we could go back. We would have made the payout date more clear to the members upon well as the reason why.

Fast forward to today...

Vinefire has grown much faster than we anticipated. It has been phenomenal really...and it's no surprise why.

It works.

People who post their ads on Vinefire get results. We pass on literally hundreds of thousands of clicks to Vinefire member's websites per day. Our web hosting costs are constantly rising.

Our rapid growth has caused some "growing pains" along the way, but it has also paved the way for us to possibly bump up the payout date to June 1, 2009.

Yes, that's less than two months away!

We are currently in talks with a company that would like to purchase Vinefire and expand the benefits available to all Vinefire members. To keep things simple, we're going to refer to the company that wants to buy us as "Company X" from here on out. (Because, due to signed legal agreements we are bound from revealing their name).

The people at Company X have known about Vinefire since nearly the beginning and have been closely watching our growth.

They like the idea behind Vinefire and most of all are impressed with our rapid growth, our dedicated membership, and results the members have been reporting on blogs. However, they say that Vinefire is still too small for them to purchase. If they are going to buy us, we have a lot of growing to do.

So, they're going to stand back and wait for Vinefire to grow. Upon meeting some specific growth goals, they would be willing to acquire Vinefire and the total purchase price would be well into the millions of dollars (US). We can't give exact numbers here, but, if Vinefire continues to grow rapidly, we will be able to pay out all members everything they have earned upon the sale of Vinefire. This sale could happen as soon as Monday, June 1, 2009.

Please don't assume that the payout date has moved to June 1, 2009. It is simply a possibility...if we are able to reach certain growth goals. This includes things such as the number of new members, listing upgrades (Yellow Star, etc.), verified accounts, etc.

We're not sure that Vinefire can grow fast enough to meet the target set by Company X. If the target isn't met, we'll have other opportunities.

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The Architect
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