MOG Network Stiffing Affiliates?

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It looks like MOG Music Network, an advertising network launched last August by the popular MOG music blog platform, is falling a bit behind on their payments to affiliates.

The advertising network allows independent music bloggers to syndicate content to Mog.com and customize ads that appear on their websites, allowing them to generate more income than they would typically get from traditional sources like AdSense.

Now it seems that MMN is falling behind and they’re also raising the payment terms. This is the e-mail that an affiliate received from MOG:

Greetings MMN affiliates,

MMN is now 275 strong. We’re really thrilled with the fantastic response we’re receiving from advertisers. Examples of advertisers MMN has featured in the last 60 days include SanDisk, Electronic Arts, and Sony Pictures. Our sales pipeline for 2009 is massive as a result of the enthusiastic reception to MMN among the biggest brand marketers in the world. They recognize MMN as more valuable, and with a cooler audience, than MySpace, Facebook, Imeem, and others. These marketers get that the tastemakers and influencers live on your sites.

Some of the proof is already in the pudding. MMN has averaged over $5.50 CPM in the last 60 days with 50%+ sell through rates, outpacing many other ad networks.

While demand for advertising on MMN continues to be strong, we are seeing a distinct slowdown in advertiser-issued payments. Regrettably, MOG doesn’t have the luxury of paying out affiliates before advertiser payments are collected. This means that we have to push back our payment terms to 120 days, starting with October 2008 earnings onward.

I ask that you be patient with us as we work to collect your earnings. We’re dealing with cream of the crop advertisers who, I assure you, will pay out.

Thanks for your understanding,

Andrei Marinescu
Director, Business Development | MOG

Uh oh. Maybe AdSense wasn't so bad after all.

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