Glam slows payments to publishers in its ad network

Glam, a women’s site publisher and ad network, is becoming more like most other ad networks out there. It will further delay payments that it owes to partner publishers, starting this month.

Publishers typically have to wait awhile for ad payments, whether in old media formats like print, or new media formats like online ad networks. First, an ad will run with a publisher, then the advertiser gets the bill, then they pay the agency they worked with to place the ad, then — in the case of ad networks — the network gets a check from the agency, then finally the publisher who ran the ad gets paid. Everyone tries to hang on to the money a little longer than they need to, in order to earn more interest by keeping it in their bank accounts.

As the economy gets worse and ad revenue growth continues to fall off, this practice is a way for Glam and everyone else along the ad supply chain to shore up their finances.

Glam had been differentiating itself, in part, by paying publishers on a faster schedule. Now, it’s joining other ad networks, like Federated Media (which VentureBeat uses), that have seen payments delayed to them lately, and are delaying payments to publishers as a result.

Starting next month, Glam will implement the following payment schedules with publishers, depending on its contractual obligations with them (Glam email to publishers via TechCrunch):

Dear Publisher,

Please be advised that to better prepare for the current financial situation, Glam anticipates a significant slow down in collection payments from advertisers. Therefore we will need to align the expected timing of payments from advertisers with the payments we make to our publishers. Accordingly, as of November 1, 2008 the revenue payments will now be scheduled on 120 day payment terms. However, in order to help minimize the impact to you and avoid gaps in payments, you will be paid as follows:

For publishers with 60 day payment terms:

Dear Publisher,

Please be advised that to better prepare for the current financial situation, Glam anticipates a significant slow down in collection payments from advertisers. Therefore we will need to align the expected timing of payments from advertisers with the payments we make to our publishers. Accordingly, as of November 1, 2008 the revenue payments will now be scheduled on 120 day payment terms. However, in order to help minimize the impact to you and avoid gaps in payments, you will be paid as follows:

November Revenue: 50% will be paid in January and 50% will be paid in February
December Revenue: 50% will be paid in March and 50% will be paid in April
January Revenue: 100% will be paid in May

Note: There are no changes in the amount you will earn or receive with this payment revision.

We appreciate your cooperation and we will do everything we can to make the transition to the new payment schedule as smooth as possible.

This agreement will go into effect November 1, 2008.

For publishers with 90 day payment terms:

Dear Publisher,

Please be advised that to better prepare for the current financial situation, Glam anticipates a significant slow down in collection payments from advertisers. Therefore we will need to align the expected timing of payments from advertisers with the payments we make to our publishers. Accordingly, as of November 1, 2008 the revenue payments will now be scheduled on 120 day payment terms. However, in order to help minimize the impact to you and avoid gaps in payments, you will be paid as follows:

November Revenue: 50% will be paid in February and 50% will be paid in March
December Revenue: 100 will be paid in April
January Revenue: 100% will be paid in May

Note: There are no changes in the amount you will earn or receive with this payment revision.

We appreciate your cooperation and we will do everything we can to make the transition to the new payment schedule as smooth as possible.

This agreement will go into effect November 1, 2008.