How Epic Media Group Fucked AffiliatesWritten by Pace Lattin
June 6, 2012 # 5:01 pm # Marketing Insights, Specials # 58 Comments
I don’t use vulgarities very often in my writing, but I had no other way to express my feelings about what is happening right now with Epic Media Group fka Azoogle. If you have been living under a rock, Epic Media Group aka Connexus aka TrafficMarketPlace fka Azooogle is out of business and is basically refusing to pay affiliates. I’ve attached a letter sent to all the affiliates and publishers of the company, basically telling them to go screw-off, and not to even bother contacting them because so many other people are owed money.
What this letter does not show is how the company royally screwed affiliates, and almost a year ago the executives knew that the company was eventually going to go out of business. They were so certain the company was in trouble that all the executives of the company left Epic Media Group, took the profitable social media assets and turned it into another company called Kinetic Social. Same CEO, same clients, same executive staff. Even the same f’ing text on the site according to a commenter on AdExchanger.
Below, note the linkedin of the four top executives at Kinetic Social, and how they all left Epic/TrafficMarketPlace at the same time, picked up the pieces and made a new company.
In fact, if you look at Kinetic Social on Linkedin, it seems that almost the entire staff is made up of Epic Social, Traffic Marketplace Employees.
Simply put: they wanted to make sure that the profitable part of the company was not associated with the part they knew would eventually go out of business. They were so certain, in my opinion, that the company had no future that they made people who just a year previously were affiliate managers actual officers and executives in the company, and gave them jobs they knew they couldn’t fulfill. It is my opinion that they planned to kill the company. I predicted that Epic would be shut down months before they announced it, and I was right — all the signs were there that they were planning this.
So why isn’t Epic doing a bankruptcy? Simple: I believe that this scheme that they planned could not currently survive bankruptcy court. There is a principle called fraudulent conveyance, which in the case of a bankruptcy means basically a company cannot transfer profitable assets out of a company in order to protect them from the debtors of the original company. If I am right about my suspicions, what they did is possibly illegal if the purpose was to keep from paying debtors.
What Epic is doing is waiting as long as they can, making sure that the time between the new company’s creation is over a year, before they can do a bankruptcy. Then they can claim that the creation of the company, the separation of the assets was not planned and is completely a coincidence.
Again, I sincerely believe that Epic’s Executives knew the company was going to crash and took the profit out of the company and waited until Epic crashed and burned.
The real kicker of this is that according to former clients of Epic, Kinetic Social is now working for them and billing them under the new name. Yes, you heard that – they are billing former Epic clients, according to an insider I spoke with, and telling them to pay Kinetic Social instead of Epic.
Any other questions on why and how Epic is fucking affiliates and publishers?
Want to make sure you are paid? Check out Adscend Media