If the math done by John Chow is correct and any indication of real payout rates for the AGLOCO network, the concept and company is doomed for failure.

For those of you who don’t know, John Chow (a minor Digg/blog celebrity) has amassed over 21,000 AGLOCO sign ups all originating from his highly trafficked and highly profitable blog. Having 21K referrals has put John on the top of the list in total referrals and most likely represents the highest payout of all AGLOCO members.

I’ll quote Chow from his blog posting yesterday so I don’t mis interpret what he was saying:

Basically, the ad revenue will be divided by the total number of network hours to arrive at a cost per hour (this is after AGLOCO takes their 10%). Once you have your cost per hour, take that number and multiply it by your total accumulated hours. For example I have 5,665.9 hours accumulated. If each hour was worth 15 cents, I would get $849.88.

So John Chow, at the literal top of the pyramid (pun intended) of the AGLCO scheme has only made $849.88 from having twenty one thousand referrals and 5,665.9 hours accumulated!

What this means for average users with almost no referrals is making money from AGLOCO is nearly impossible. To compare John’s payout with my potential payout (I have 1 inactive referral), you’d have to do some rough math;

$849.88 / 21,000 = $0.04

Which basically means I make more money finding random change on the ground than I would from AGLOCO. Unless of course I refer thousands and thousands of users and dupe them into running the crappy ad bar (a whole separate story to come.)