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Alert on 24-7 Digital, Inc.

ASMP has just received copies of solicitation offering an investment opportunity in a company named 24-7 Digital, Inc. We suspect that 24-7 Digital, Inc. will seek photographers to participate in its operations, although the offering contains a claim that 24-7 Digital, Inc. already has "artists signed to 5 - 10 year agreements." We think it important that photographers understand how the company is being positioned with investors. This quotation says it all.

"24-7 has also revolutionized the standard artists contracts. Now 24-7 directs the creation of its imagery specifically to its customers needs and pays a royalty of only 20%. This is in comparison to the current industry average artist royalty of 50-70%! This means that 24-7 has specifically the imagery that is needed and much higher profit margins, some of which are passed on to the customers as additional savings."

The message is clear. The photographers will work for less so that the clients will save money and the investors will make money. Photographers ought to think about that before they fall for some sales talk about how this new enterprise will be good for them.

Additionally, pay attention to these words: " directs the creation of its imagery specifically to its customers needs." This sounds like shooting on speculation. It might happen this way. First, they find out what a client is looking for. Then they get photographers to shoot it. Then, the one whose image is selected by the client gets 20% of the sale. How else could "the creation of its imagery specifically to its customers needs" work?

All ASMP can say is that this opportunity for investors will have winners and losers. In this case the winners are the investors, if the photographers agree to be the losers. Don't do it.

We are posting this at the ASMP WWW site so that anyone searching the web for 24-7 Digital, Inc. might find this message. Only a foolish investor would risk capital in a venture that bases its success on the planned starvation of its source of supply.