laserjobs
Premium
join:2004-05-02
Las Vegas, NV
 ·Cox HSI
| SunRocket affiliate program on "hold"
Just got this email from Linkshare regarding SunRocket's affilate program. It does not look good.
Dear xxxx,
As of July 5, 2007, LinkShare placed the SunRocket affiliate program on "hold." Currently, all SunRocket-LinkShare links are no longer functioning. This decision was made to protect both LinkShare as well as SunRocket's affiliates.
SunRocket maintains outstanding affiliate commissions for transactions made since March 2007. Based on the company's current business situation, we are unable to determine if and when payment will be received. Until we can determine the status and capability of SunRocket to remit payment for orders referred by you and tracked through our network, we will not continue to allow any further transactions to occur. Again, this action by LinkShare is for the protection of all partnerships and to prevent any further debt to affiliates within our network.
We have been, and will continue to work diligently to secure payments for affiliates in a timely manner.
We apologize for any inconvenience this action may have brought you. Thank you for your work with LinkShare and this merchant. We hope that this situation will be resolved in a way that allows your hard work to be compensated appropriately.
We will provide further updates to you as soon as we can.
Best Regards,
LinkShare Network
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Vote for Ron Paul in the Republican Primaries |
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jduffy
join:2006-08-20
Cincinnati, OH | Wow, I'm glad I ported from SunRocket and canceled my account. It's one thing after another. Looks like they could be in real trouble.
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Atheists swear there is no Heaven, but pray there isn't a Hell. |
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dmolavi
Premium
join:2005-04-11
Sewell, NJ
 ·Verizon FIOS
·Comcast
 ·ViaTalk
| reply to laserjobs
yep, i just got that email. i'm barely 6 months into a 2 year renewal (a BOGO deal). i'm not ready to start forking over the $60+/month to verizon again, so i'm gonna stick through it till the bitter end. comcast (our HSI provider) has a bad rep in our area of purposely introducing latency to packets destined for vonage, so they're out of the question now. (neighbors went from vonage, with horrible quality, to SR and are loving it).
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NukedGallery.net |
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B
Premium,MVM
join:2000-10-28 | reply to laserjobs
Wow, this sounds really bad. This seems more of an alarm bell than even the recent firings!
-- B
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In a realm outside causality and function |
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Stewart
join:2005-07-13
·PHONE POWER
| reply to laserjobs
Perhaps I'm being naive, but SR does have one valuable asset: those 200,000 customers. If they are unable to get additional capital, there is enough money at stake so that some smart lawyers will get involved. They will find a way to rig a deal such that:
1. Some buyer will acquire the customer base.
2. The principals will walk away with a good piece of change.
3. The lawyers will get rich, too.
4. The creditors will get the shaft.
If the funding comes through, it will be business as usual. In the latter scenario, the good news for the customer is that you will still have dial tone. The new provider may raise prices, impose restrictions, etc., but at least this will give you a chance to port your numbers elsewhere, with little or no service interruption. I believe it's unlikely that the plug will just be pulled. In that situation, everyone loses; there are lots of people motivated to ensure that does not happen. |
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jduffy
join:2006-08-20
Cincinnati, OH | You hope - except for the pond scum sucking lawyers getting rich off other peoples' misery.
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Atheists swear there is no Heaven, but pray there isn't a Hell. |
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10414459
join:2007-04-23
Key West, FL
1 edit | reply to Stewart
Stewart, I am sorry but you are wrong.
SunRocket has already invested 100 million dollars to acquire 200,000 customers, an average of $500 for each customer. The only way to value those customers is to discount future cash flows to a present value. If you assume that the customer base has an average life of 3 years and a net cash flow after expense of $100 per customer and assume a 35% discount rate due to the high risk then each customer has a net present value of only $170.00. This is a best case scenario assuming that they drop expenses drastically, stop all marketing and remain stagnant with zero customer attrition!
SunRocket is a grossly mismanaged company and it boggles the mind that the owners, the venture capital funds that funded the company have allowed the mismanagement to continue. It was their money and they blew it. It is gone forever and it is not coming back.
One day they are offering 2 Uniden cordless phones, the next 1 Uniden cordless phone, the next day, 2 GE cordless phones and the next day 1 GE cordless phone. Then they are offering 3 months free, then a second year fee, then one year for $99.......absurd marketing.
If I were a VC I would not give them a dime. On the other hand, I can foresee the slim possibility of Nokia (Which owns Blue Run Ventures) offering to buy out the secondary VC's at a huge discount and bringing in competent management.
While I personally feel that SunRocket's management is grossly incompetent, I can honestly state that in my personal case, I have never experienced a billing problem nor a service problem and I have been a subscriber since the spring of 2005. |
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koam
Pink Pecker
Premium
join:2000-08-16
East Puddle
clubs: | »Wall Street Journal praises SunRocket |
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Stewart
join:2005-07-13
·PHONE POWER
| reply to 10414459
Re: SunRocket affiliate program on "hold"
OK, suppose each customer is only worth $125. That's still $25 M, enough dough so that the players will come together and talk. If Nokia doesn't want to deal, perhaps Google or AT&T will. Maybe the VC guys will get only 10-15% of their investment back. It's still better than losing everything, and there is no other choice. If they just pull the plug then everyone loses. So IMHO something will be worked out. |
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10414459
join:2007-04-23
Key West, FL
2 edits | I agree Stewart. I just don't know how they are going to pull the rabbit out of the hat.
As an affiliate, I have signed up well over a one thousand SunRocket subscribers and it could have been two and a half times as many, if SunRocket would have listened to advice. They don't listen and that is a big part of the problem.
Currently, they owe me a little less than $5,000 which I seriously doubt I will receive. Once, they shaft their affiliates in bankruptcy, that is the end of SunRocket.
It was a nice ride while it lasted. |
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koam
Pink Pecker
Premium
join:2000-08-16
East Puddle
clubs:
 ·Shoreham Telephone
·ViaTalk
 ·surpasshosting
1 edit | Your post made me think about the number of rocket reward referrals I had ( a lot, none of whom I knew.)...I realized that I was wrong about having any data by which we can judge how many customers have dropped SuckRocket. We do have attrition data. I went into my referrals list and realized that there is a button that allows me to save each referral to my contacts - so I have their phone numbers. In theory, I could call each of them and ask if they are still with SunRocket, then see what percentage have remained members. I also have their sign-up date - most were in 2005. I'm not likely to do all that (too busy) but there IS data to be had about retention rates!
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OSCAR-NOMINATED "Jesus Camp" costars man-lovin' meth-head Rev. Ted Haggard
»www.jesuscampthemovie.com/ |
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christcorp
Premium
join:2001-05-21
Cheyenne, WY
·Bresnan Online
·VOIPo
| reply to laserjobs
Re: SunRocket affiliate program on "hold"
1 problem that seems to be overlooked is that most existing SunRocket customers are not an annuity. Imagine you have a 401K retirement that you are ready to cash in on. You could take the $1 million if you'd like. You could buy a new house, a boat, vacations, etc... OR, you could take an annuity on that million dollars and take approximately $7,000 a month. Your taxes are deferred, your principle remains firm, you still have a good budget to work with, etc... Well, that's how normal customers are. You have an annuity with them with monthly income.
Most Sunrocket customers aren't worth a penny to SunRocket or anyone who might take over the company. Out of the 200,000 customers, probably 180,000 of them paid in full. Whether sunrocket stays in business or sells, these customers will generate $0 for everyone. SunRocket took their money, as well as the VC money, and did whatever with it. Maybe they didn't spend it all. Maybe they have some liquid. Either way, Sunrocket is screwed. Imagine if SunRocket had a Net Loss of 15,000 customer a month for the next 6 months. They couldn't afford to pay back their 100% money back guarantee on unused months.
Personally, if it were me, I would be looking for a new voip provider, port my number, cancel the remaining months, take whatever refund I could get. Of course, this is all after doing 3 Hail Marys and 2 Our Fathers. If keeping the number wasn't important to you, I would cancel immediately, get a refund, sign up with Voicestick with the next2nothing PAYG plan, regroup, and then decide on a new provider. Oh well, it's going to get interesting. Later... Mike.... |
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zoofreak
join:2005-01-05
Irving, TX
·VoicePulse
| said by christcorp  :...If keeping the number wasn't important to you, I would cancel immediately, get a refund, sign up with Voicestick with the next2nothing PAYG plan, regroup, and then decide on a new provider. Oh well, it's going to get interesting. Later... Mike.... They may already be at the point where they can't afford to refund for unused months. I'd hate to cancel, lose my number and get stiffed for my unused months. Of course, sticking with them, may have the same result.
Being 8 months into my first year of a buy one get one, I'm sticking with and taking my chances of losing my number. I already have GrandCentral numbers to replace my regular and signature number. I'll point GC at my cellphones until I get an alternative VOIP set up, then point there. Since Google now owns GC there is not a high risk of losing my new numbers. |
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10414459
join:2007-04-23
Key West, FL
| reply to christcorp
"Out of the 200,000 customers, probably 180,000 of them paid in full."
Good point. Assuming they stayed around for their remaining months and renewed (a big if) they would still have some value.
There is very little meat left on SunRocket's bones, even the vultures may turn up there noses and fly away. |
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ptrowski
Got Helix?
Premium
join:2005-03-14
Putnam, CT
clubs:
·VOIPo
·Metrocast Communic..
·AT&T DSL Service
·ViaTalk
| said by 10414459 :"Out of the 200,000 customers, probably 180,000 of them paid in full." Good point. Assuming they stayed around for their remaining months and renewed (a big if) they would still have some value. There is very little meat left on SunRocket's bones, even the vultures may turn up there noses and fly away. So what happens to the money you spent on pre-paying to 2089? 
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"A religious war is like children fighting over who has the strongest imaginary friend."
Have you been touched by his noodly appendage? »www.venganza.org |
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10414459
join:2007-04-23
Key West, FL | So what happens to the money you spent on pre-paying to 2089?
Gone but not forgotten. |
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ptrowski
Got Helix?
Premium
join:2005-03-14
Putnam, CT
clubs:
·VOIPo
·Metrocast Communic..
·AT&T DSL Service
·ViaTalk
| said by 10414459 :So what happens to the money you spent on pre-paying to 2089? Gone but not forgotten. I shed a tear for your money, Blue Cat. 
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"A religious war is like children fighting over who has the strongest imaginary friend."
Have you been touched by his noodly appendage? »www.venganza.org |
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B
Premium,MVM
join:2000-10-28
| reply to 10414459
said by 10414459 :SunRocket is a grossly mismanaged company and it boggles the mind that the owners, the venture capital funds that funded the company have allowed the mismanagement to continue... I personally feel that SunRocket's management is grossly incompetent... Why do I feel as if I have stumbled into an alternate universe, one where, among other things, the island of Bermuda no longer exists?
-- B
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In a realm outside causality and function |
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