Entrecard paid ads explained

Posted in the Entrecard forums, Phirate of the company's development team gives out some explanation on the current Entrecard "Paid Ads" scenario to address questions pertaining the new system.


We took the salient points from that post hoping to help you understand the questions laid out, handle your own inquiries and to erase confusions brought about by Entrecard's new paid advertisements system.

Question: Am I getting credits or something for accepting these paid ads?
Entrecard: No. We are expecting everyone to do their best to help support Entrecard within their own capabilities. We have decided to leave how you do that up to you, at least initially. We hope that many of you will choose to support Entrecard and the users by supporting this feature, and allowing us to earn money both to pay for hosting and to fund the upcoming CashOut feature.
Question: Why is this even necessary?
Entrecard: In simple terms, Entrecard needs money in order to pay for things like web hosting, development etc. For those who aren't familiar with the industry, things like the Market cost upwards of US$7,000 to put together, and hosting costs are in excess of US$1,000/mn for the systems needed to serve the EC community at this time. It's not cheap. So, to be clear, your free Entrecard account costs Entrecard a fair chunk of money. We've already done some things, such as selling credits, to help balance these costs so we can continue operating. Paid ads is simply another option.
Question: What's this CashOut thing?
Entrecard: CashOut is a feature coming up shortly. It's our carrot to give back to the community for helping support the whole system. In essence, we take 75% of the funds acquired via the paid ads programme, and we put that into a fund that will be used by Entrecard to buy credits from users (if they want to sell) in exchange for US$. This fund is accumulating as we speak, and I hope to have the CashOut user interface complete by this time next week.
Question: Can I pay for a paid ad campaign with credits?
Entrecard: No. At least, not at the moment. The reason for doing all of this was to get US$ into the system after all. That said, once things are stabilised it's possible we will allow people to do direct credits->paid ads conversions. It will be announced and discussed publicly before any change like that happens however, it really depends how the EC economy responds to the new features we're just putting in now.
For the complete summary, please visit this thread.
Update: Entrecard Ad Network payout: 75% to members.