Glam Media Slows Payments Due to Economy

Glam Media is telling its publishing partners to expect slower payments given the grim online advertising climate.

Glam told publishing partners it would now take up to four months to pay them instead of the usual 60-90 days. The extra time will permit some of Glam's advertisers to stave off default, it said, and will also give the women's content and ad network a bit of extra earned interest income from the extended float on payments it does receive on a timely basis.

"Please be advised that to better prepare for the current financial situation, Glam anticipates a significant slow down in collection payments from advertisers," Glam said in the email. "Therefore we will need to align the expected timing of payments from advertisers with the payments we make to our publishers."

Glam said the payment amounts would remain the same despite the delays.

Delayed payments are fairly standard in publishing, both online and in traditional media. But Glam's switch to a longer payment time frame could have an impact on publishers, who will now miss 2-4
months of revenue as they wait to see earnings on ads that may already be dwindling from the stalled economy.

Glam's email to publishers, from TechCrunch, after the jump.

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.