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How Not To Destroy Your Online Business Instantly: The Chitika

Article:

Chitika

eMiniMalls burst onto the online scene and dominated it

quickly. They used a unique advertising display that allowed

websites to place products on their site easily and get paid for

people who clicked through. The Internet was on fire with

website owners touting how much money they were making. They

seemed to get glowing reviews everywhere and other than a few

complaints on customer service they were looked very highly upon.

Chitika launched their eMiniMalls in October, 2005 and quickly

displaced other forms of advertising on many a website. Some

website owners even going as far as removing Google AdSense and

other pay per click advertising forms from their websites in

favor of Chitika. Running on a 30 day pay schedule, those who

used the advertising in October would see their first revenue

checks coming around the First of December, 2005 at the latest.

Days before the revenue checks were to be cut, Chitika announced

that it was going to do an audit of clicks and that some

publishers could see their revenue down a bit from what had been

reported throughout the month. On December 1 Chitika implemented

the auditing and the results were a bombshell that is bound to

destroy the company. There was a firestorm around the Internet

of some publisher's revenue being cut in the audit by as much as

90%.

Word spread quickly around the web and there was a huge backlash

that the company is probably not going to recover from. Website

owners around the web removed Chitika from their websites vowing

to never deal with the company again and posting vicious and

negative reviews of the company everywhere, such as those found

at Inside Online Advertising.

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Reputation for a business is the most crucial thing to lose.

With a lot of consumers and clients you only get one chance.

Chitika will probably not recover from this huge mistake of not

making sure that their systems were working properly and that

the promises they made to publishers from the start would be

honored. Don't make this mistake yourself when starting your

business. Look ahead and plan before you start signing contacts

and making promises.

About the author:

Copyright Dan Amato

Dan Amato lived through the dot-com boom and bust in Santa

Clara, CA. He is the co-founder of numerous companies from the

ground up and currently maintains http://www.startuphints.com, a free resource for those starting a new business. He can be

contacted on his blog at http://www.diggersrealm.com.