"What we've negotiated is a short-term agreement that benefits members because it swaps exposure between AdOne Classified Network and Lycos," Chief Financial Officer Brendan M. Burns said. "We'll run print ads that point to specific network papers, Lycos and AdOne. With Lycos we get several million impressions."
The deal is not a licensing of content or access to the network, which is available free on the Web. Rather, it's an "exposure agreement" according to Steve Brotman, chairman-CEO of the year-old company.
AdOne provides newspaper companies with both the technology back-end and marketing training to publish and sell into their own branded online classified environments in exchange for a revenue split from online selling.
The split is often 50-50, though with its larger market newspapers, that split might be lower. (To date, smaller market newspapers, in the 50,000 to 150,000 circulation range dominate the network). Newspapers make no upfront investment; if they don't make money, AdOne doesn't either. AdOne gets an annual cut of about $30,000 from its larger clients.
The company plans to launch a Chicago office by the end of the year.