Lesson Learned? AllAdvantage 2.0 Shuts Down

“To all those saying today is different than the last bubble…well, not anymore,” we wrote when we heard about AGLOCO, a pyramid scheme based on (and founded by some of the same people who worked at) AllAdvantage, which flamed out in 2001 after just two years in operation — and $135 million in venture funding. AGLOCO, which launched late last year, was little more than a fresh coat of paint on AllAdvantage’s business model of paying its members to surf the web. GigaOM readers responded in fine form, with quips like, “Gentlemen, start your egg timers.”

It appears that Bubble 2.0, or whatever you want to call it, is not mirroring the past, however. AGLOCO emailed its members last night to say it was shutting down due to lack of revenue.

We would like to update you on the status of AGLOCO’s operations. We continue to believe in the AGLOCO concept, but our revenue is currently not sufficient to give Members a meaningful distribution. And though there are increases in membership, the resulting revenue is not enough to support operating costs. As a development team we are unable to continue to use our savings to fund the operations. If any Member would like to pursue continuing the operations of AGLOCO, you may contact us at [email protected] .

We would like to thank every Member for supporting our effort to bring a piece of the Internet directly to the user. We hope that we can find a way to keep the operations going.

Another startup that shut down in the past week was Edgeio, a classifieds aggregator co-founded by TechCrunch’s Michael Arrington. Fittingly, he wrote the obituary.