Google's "Panda" updates cost Demand Media, parent company of eHow, $6.4 million in the fourth quarter of 2011. This substantial loss followed a 53% drop in eHow's search visibility, with its UK site falling 72%, as the search engine declared war on low-quality content farms.
The algorithm changes targeted websites believed to contain shallow, SEO-driven content. Large article directories faced heavy penalties, significantly impacting their online presence and revenue.
The Advertising Net, however, continues to promote article marketing as a central component of online revenue generation. The company merges an article directory with a multi-level marketing compensation plan, despite the industry shift.
Jim Perkins is listed as The Advertising Net's CEO. Perkins entered network marketing through NSA and later became a top earner with Symetics. He then achieved Platinum Distributor status for Nutrition For Life.
Perkins retired from managing two successful plant hire and haulage businesses. He spent several years working with the management of networking companies. He then decided to re-enter network marketing. For two years, he collaborated with Dave Coxon on a project Perkins initially created 15 years prior. He reported significant success with the original concept and believed the internet could now scale it into a long-term company.
David Coxon serves as The Advertising Net's Technical Director. Paul and Cynthia Gregory, alongside Paul and Fiona Smith, are listed as Directors for the company.
The Advertising Net offers no distinct product or service for sale. Its business model relies on existing members recruiting new ones, earning commissions from each sign-up. Membership provides the ability to create and host an article within the company's online directory. The company also states it gives members access to "online training and online videos for marketing advice," though it provides no further details on the content or instructors.
The Advertising Net's compensation plan uses a series of matrices. Members receive a monthly cycle commission when a matrix fills. Should a member leave, a new recruit eventually replaces them, maintaining the matrix structure.