Panic buying in the Entrecard

Entrecard just released the new modification to the pricing system, the most awaited is now unveiled. The advertising prices is now completely changed, the price of your advertising depends with the demand of your ad spot. I can say that it is now showing the real value of your site, When people buy and ad on your site the price gone up, once the one ads finishes you ad price will down halves, It's basically up and down. If you want to advertise on a certain site, just wait until one ads finishes because the ad spot will down half price.

According to Graham:

all blogs start at a base of 2, and prices double for each ad that someone purchases, and halves for each ad that completes.

It's like we are waiting for the price to go down and grab the bargain....Let's go shopping. At the moment people in the entrecard are panic buying, some are saving for a certain blog where they want to advertise.

Here's the calculation:

Star at 2 credits, and double it for everyone waiting for an ad on your site. For example, if you have: 5 people approved and 5 people waiting for approval, Calculate 2 x 2 x 2 x 2 x 2 x 2 x 2 x 2 x 2 x 2, or 2 to the power of 10, which equals 1024 credits. And then in 24 hours, when an ad has completed running, their price would go down to 512.

"If no one bought an ad that day, tomorrow it would go down to 256. And then if someone bought an ad for 256, the price would go back up to 512"

I think now with this new price modification changed, people are no longer using their credit for a crappy advertisement for two reason:

1. Credits are now limited...especially those bloggers that have more than 3 blogs in one household.
2. Ad Spot are expensive especially the popular sites.

This is a supply and demand....truly marketing.

Positive and Negative Impact? according to Graham's:

Positives:
1.) You can buy an ad on any one, at any time, as long as you have enough credits.
2.) Prices will be more fair. ProBlogger and John Chow won’t hover around 200. They will quickly be bid up to a more respectable price, simply because people are willing to pay more.
3.) You do not need to be drop-intensive to preserve a decent price.

Negatives:
1.) The prices are going to be VERY screwy for a few days. The most expensive person will be 500,000 credits!

This is crazy, i am sure you have notice them already. I am not sure if i am going to like it and if you are going to like it either, at the moment it's mixed emotion.

But Graham forewarned everyone and say's

"once the prices settle down, we’ll all be able to get a handle on exactly how useful and advantageous the new system is. The first few days might be a little crazy though, so be forewarned"

Entrecards have a lot going on ... they have some modifications which it makes us hate them or love 'em...honestly i love some additional features but lets see how this go.

Share your thoughts.

Source and full explanation Visit: Entrecard’s new pricing finally unveiled!