AGLOCO was started at a coffee shop near the Stanford campus. We sat down with a group of Stanford graduate students to design the next generation of the Internet enterprise using the infomediary as one of the foundation blocks.

We decided we wanted to build the economic network that enables individuals on the Web to share in the profits that their data and their actions help create. AGLOCO is more than a Web site and it is more than a Viewbar company. It is a network that links people, their information and their friends together to form something bigger.

Like all networks that have come before (from the Internet itself to MySpace), this one gets stronger as it gets bigger. AGLOCO with 1,000 or 10,000 members is not much more than the sum of its parts. But AGLOCO with 1 million or 10 million members starts to become important. It's important because it changes the consumer-company relationship online and changes the way everyone thinks about their online experience.

Why It Works.
AGLOCO works because the network effects are self perpetuating. It gets stronger as it gets bigger. With more members and stronger cash flows, the profits that the members share in increase - and this draws in more users and hence stronger cash flows. The incentive to join early and tell many friends is big, as early members who help build the network stand to benefit the most (similar to nearly all start-ups, where the early employees tend to share disproportionately in the success of the company).

As AGLOCO grows, the economic incentive continues to grow as it is able to offer more and more value for its members. Unlike AllAdvantage.com which incurred incremental costs for each additional member-hour, AGLOCO generates positive free cash flow from each additional member-hour and has virtually no incremental cash expenses for additional use of the Viewbar. AGLOCO will have standard operating costs (site maintenance, bandwidth, insurance, telephones, office space, sales and administration etc.), but like Google these costs should be very low compared to the revenue Members generate.

The Members Own the Company.
That's right - 100% of the company is member-owned. Users make good ideas valuable. Good ideas are great, but without members, they are just that - ideas. Every decision is made by asking what is best for the members over the long-term. It's a new way of thinking, but it works because we are all in it together. So how do we make money?

We Own the Managem

See If you refer 5 members and every one of them refers average of 2, Given total 5 referral levels, your downline becomes:

Level 1 - 5
Level 2 - 10 (above 5 referred 2 each so 5 X 2)
Level 3 - 20 (above 10 again referred 2 each so 10 X 2)
Level 4 - 40 (above 20 again referred 2 each so 20 X 2)
Level 5 - 80 (above 40 again referred 2 each so 40 X 2)
Total referrals = 155

Now if these 155 people surf 5 hours monthly (the max limit we can get credit for) with viewbar. So total hours = 155 X 5 = 775.

Since, we get 25% of our referrals, 25% of 775 hours will be 193.75 hrs.

Add our own 5 hours to it.. 193.75 + 5 = 198.75 hours

That translates into $198.75

ASSUMING THIS FORMAULA IS CORRECT!