Epic May File Bankruptcy, Assetts Being Sold
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Epic May File Bankruptcy, Assetts Being Sold

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Performance Marketing Insider has learned that Epic Direct, formerly known as Azoogle, is currently being slated for closing and they are having discussions of bankruptcy. As of Wednesday, their entire staff has been laid off and a spokesperson with the company has confirmed that the company is currently winding down — and no more publisher payments have been made.

Additionally publishers have been informed not to send any more traffic to the company. The spokesperson confirmed that the decision about if the company will file bankruptcy is still being discussed by the board and any remaining few employees are not able to answer questions.

We have additionally been told by insiders that the company had faced enormous financial difficult this year with tens of millions of dollars of unpaid debts from a variety of companies not willing to pay their bills. This caused significant cash flow issues and with a growing publisher base worried about payments, traffic dwindled.

According to Mundo Media, they have bought assets from Epic Direct including domain names from their “host division” and several Epic Employees have already been hired by Mundo Media.

The social division and display division of Epic has already been spun out as a separate company, Kinetic Social, almost a year ago to purposely separate the businesses and liabilities.

Written by Pace Lattin

Pace Lattin is one of the top experts in interactive advertising, affiliate marketing. Pace Lattin is known for his dedication to ethics in marketing, and focus on compliance and fraud in the industry, and has written numerous articles for publications from MediaPost, ClickZ, ADOTAS and his own blogs.

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34 Comments

  • Tom Fang says:

    Horrible conduct of business leading affiliates on for over a year even though they know they are having massive payment issues across the board. Incredibly unprofessional, knowing that many affiliates starting out depended on those small amounts of cash to keep them afloat, yet they kept promising they will pay and never did in most cases.

    I hope I never have to come across the decision makers of this unethical company ever. There were many good people who worked there, and this hopefully won’t reflect poorly upon them.
    Tom Fang recently posted..POF Optimization/Management Platform Design Sneak PeekMy Profile

  • dilan says:

    how did they manage to get away with it for over a year i ask myself…..crazy huh!

  • Mr. English says:

    Pace – Please take a minute to proofread your posts. For the most part, your English is horrible. I subscribe to PMI and enjoy reading the news that you put out but you need to take the time to be a bit more professional with your writing.

    Sincerely,

    Mr. English

  • so this is a stupid question. can the publishers who were swindled by this company get together & hire a lawyer to sue them, so that we at least stand a chnace of getting something from them – or is it wasted time to expect a company to pay their obligations? if so can we go after the company that we actually provided the leads for, as the leads, according to this article have not really been paid for by them?

  • Muthu says:

    Hey I’m a publisher with EPIC. It’s just not true that they aren’t paying – I stopped sending them most of my traffic when I heard bad things about them but even then they did pay me for last month. Also, it is not true that they have sent emails to all publishers to everyone asking them to stop sending traffic. I haven;t received any.

    • pacelattin says:

      “Muthu” this was straight from the company themselves in a phone call this morning.

    • byeepic says:

      “Also, it is not true that they have sent emails to all publishers to everyone asking them to stop sending traffic. I haven;t received any.”

      I second that, no email notification whatsoever. We did over $100k+/month late last year.
      Since they were constantly late with payments, in their words it was due to “some bad acquisitions they had made” (in addition to advertisers not paying them) – we had stopped sending most of our traffic to them in early january. We’re still owed over $10k at this point.

      Also just this morning they sent out their (automated) offer with their best pay per call offers but I presume Epics’ pay per call department = also hit the sh*tter?

    • Affiliate says:

      I didn’t get an email either….

      They still owe us money, I doubt we will recoup it.

  • huh says:

    not sure what you are talking about there are not spelling errors in this article.

  • David says:

    Pace, it sounds like this story vindicates what you had written before about some affiliates not being paid by Epic.

    I commented then that I was not sure, but something seemed fishy about all the traffic I sent them with zero results coming back.
    David recently posted..Getting More Traffic To Your Site Through The Disqus Commenting SystemMy Profile

  • good says:

    sounds like the end/evolution/start of affiliate marketing.

  • Tim Che says:

    Yah, it sucks. I still have $1,500 in my account and never get paid since last year. They kept making excuses that the check was already mail out when my account is setup to receive ACH.
    Tim Che recently posted..5 Must Read Internet Marketing BooksMy Profile

  • James says:

    Yea, they owe me 1700 and I kept told I was getting paid, my rep said he wouldn’t just leave me and would set me up with someone else there that works there if he left, guess that isn’t happening

  • Stefan says:

    Well it’s always sad to see a business fail, but ultimately that’s the law of the jungle. Epic allowed themselves to build up massive levels of debt instead of downscaling when necessary, and in this climate you simply cannot get away with doing that.

  • PPCNinja Team says:

    I’m glad they are still paying you, Muthua..

    I’m owed 85K. EPIC stopped making regular payments early April…

    It’s complete bullshit.

    Like Tom said — it’s a horrible conduct of business leading affiliates on for over a year even though they know they are having massive payment issues across the board.

    The screwed up part is ex Epic employees emailing me asking for money. (aka asking me to promote the same offers epic has not paid me for )

  • Ian says:

    its real out here. Im among those still owed money. Hopefully something positive comes out of all this though.

  • Eric says:

    I am owed $3400. My AM asked me to stop traffic a few weeks ago and all their staff are leaving slowly.

  • Frans says:

    It’s indeed sad what happened. EPIC has been around for years, always had big impact on the industry. Good luck to the ones who got laid off.

    Ps if any former Epic employee is reading this comment, ReviMedia is looking for good, experienced affiliate managers, so please feel free to contact us if interested! (btw also if you didnt work for Epic, you are welcome to respond ;-).

  • Danny says:

    Screw EPIC. They owe us quiet a bit of money, but I feel even more bad for the smaller affiliate that actually depends on this money to pay their bills. These networks do not think, nor do they care about what kind of hardships they put other affiliates in. For us, we’re able to whether it when these sorts of issues come up, and they do come up from time to time, but some pubs unfortunately cannot, and that’s just a shame. My problem is not that they are going belly up. The issue is, they led a lot of people to think that they were fine, and that all payments will be made out soon and that they have nothing to worry about. So they lied to all of their pubs so they can keep on promoting. Did anybody think this was going to end up any differently?

    Danny

  • Frederik says:

    Danny I agree with your statement. We are owed close to $30k and was told nothing was wrong until it was too late.. A lack of respect for the people that have helped support their business.

  • Erick says:

    Epic owed me 16k usd :S

    Now, dont answare the emails.

    =(

  • Epic Affiliate says:

    Lemme get this straight? Just last summer they were throwing parties at the playboy mansion buying shoemoney blow jobs. Now less than a year later they are bankrupt?

    Anyone else wonder where their money went?

  • Ms. English says:

    Unless a spell check was run after the comments were made, I don’t see any *spelling* issues. It’s grammar and sentence construction (for example: “…faced enormous financial difficult…” )

    That being said, if the man woke up at 5 am to get you this news (from a first person source, no less) then cut him a bit of slack.

  • DOES ANYONE KNOW IF A CLASS ACTION LAWSUIT IS POSSIBLE???? Please join this Facebook group so that we can all coordinate:

    https://www.facebook.com/groups/311682812244133/

  • EpicScrewedMe says:

    Epic stopped paying some publishers last year, Q4, 2011 including us for over $100K US.

    Did the higher ups there just take what ever money they had and siphone it off to the other viable spin-off companies?

    Seems like a good plan (if you are Epic)

  • Matt M says:

    How can the Epic executives start a different company and then sell the assets to the new company, can we say fraud? Do they think this will clean up their reputation. Why can’t we just attached the assets of Kinetic Social?

    I’m calling my atty and will keep you all posted.

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