Entrecard Price Change. Looks Like They Know What They're Doing.

Entrecard has announced a change in the pricing system.

It looks like Entrecard knows that they are dealing with a online currency and are taking the rights steps to preserve themselves, see Why Entrecard Might Fail.

Here's a portion of what they said on their blog:

"It’s going to go live within the next 24 hours. Just to be clear, we are talking about a complete change to the way everyone’s advertising prices are calculated.

Starting today, your ad price is determined solely by demand for your ad spot. Every time someone purchases, or applies to purchase an ad on your site, your price doubles. Every time an ad finishes running, your price halves.

To calculate your price at any given moment, just start at 2 credits, and double it for everyone waiting for an ad on your site. For example, if you have 5 people approved and stacked in the “On your widget” column of the dashboard, and 5 people waiting for approval, you would 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.

So the price will actually fluctuate with each ad that has been bought and each ad that completes. If no one has bought an ad on you in a while, your price will get very cheap very quick. And if you want to buy an ad on a high-profile blog, you’ll be able to whenever you want, as long as you have enough credits."

You can read the rest here.

This seems like a fairly good thing. But are they taking card drops out of the equation? Will a drop be worth more?

If your price is extremely high or low right now, don't worry it will settle itself.

What do you think about the change? Is it good or bad? Leave a comment to let me know.