Viradyne CEO Paul Koury recently informed members that the company struggles with "very low quality" users, impacting its payment structure with partner Link180. Link180, a search portal, pays Viradyne a flat monthly fee for each active homepage user, a rate that increases as specific performance goals are met. This user quality issue casts doubt on Viradyne's operational model.
Koury clarified that "low quality" refers to user metrics, not the individuals themselves. These metrics measure a search portal's success and credibility, particularly for advertising-dependent models. Viradyne's current user base presents a significant challenge for the company in meeting Link180's performance targets.
Link180's payment structure depends on three main factors. The first is the total number of "Active" homepage users referred by Viradyne Affiliates. The second is the average "Quality Score" of these users. Finally, the country where an "Active" homepage user is located also influences the payment rate.
The "Quality Score" itself compares the activities of an average Viradyne homepage user against those of competitors like Google, Yahoo, MSN, Bing, and Ask.com. Koury stated in an email to members that the average Viradyne user's "Quality Score" is currently very low. This indicates that most "Active" homepage users are not using Link180 as their primary search engine.
The company's apparent access to competitor user data raises questions. The Link180 search portal, from its initial launch, offered a sub-standard user experience that "bombarded (the user) with all sorts of advertising units." This prior assessment of the portal's design suggests the current user engagement problems were predictable. The platform itself uses Google's search results to power its queries. This reliance on another company's core search technology, combined with the stated user engagement problems, further complicates Viradyne's efforts to monetize its platform.