John Reese on the Competitive Nature of Internet Marketing

I recently read John Reese's PDF announcing the launch of his new Income.com site. In the PDF he talks about how competitive internet marketing will become in the coming 5 years, and stated what are the two main ingredients to large sustainable profit in that type of marketplace. The first is on the concept of optimization:

The key to dominating any market online (now or in the future) is simple. It comes down to who has the highest average visitor value and who has the most traffic.

That is part of the reason I need to increase the price point of my ebook. There are only so many times you can see other marketers repackage and resell your information at a higher price point using aggressive affiliate marketing before you change your price point to more accurately reflect value.

I recently started a site with a friend of mine. Off the start it was frustrating doing all the tweaking needed to learn, but my friend so broadly believes in the concept of optimization that our site will probably out-earn older versions of its format by 400%. 4x the earnings on the same number of pages gives you serious capital for marketing investments and content production.

John's other tip is that when people land on your sites "Are you truly making someone's life better?"

I think that second point is one that is easy to miss if one is too shortsighted. Creating sites that are helpful / of significant value is something I want to work hard on, and has been core to the brand ideas behind my last couple major domain purchases.

Good Content Without Marketing Typically Goes Unlinked

If you are not nepotistic in your marketing some of your best content will go unnoticed, especially if you write at a level that is beyond most of your readers. Many of the people who are popular are not popular just because of content quality...there are so many nepotistic partnerships that go unspoke of that it is quite scary. Anyway, here is a brilliant post by Andy Hagans about how to sell a site for a million dollars. He is a friend, and the link may be nepotistic, but I am surprised that it got so little traction for how great it is. I guess more bloggers want to be told their blog is worth a million than want to learn how to get those million dollars in hand. To each their own.

You can tell that he is writing from his experience and learning while he is actively doing what he is talking about. That is typically where the best ideas come from...when you escape ideals and theory and talk about the trends you see right now and what is working for you right now.

Content as Marketing for the Upsell

In many formats price is just used to filter out some of the noise, and an item is priced so low remind people it has some value, but allow it to spread fast. Consider Seth Godin's new book titled The Dip. He is a brilliant marketer, has huge reach, has a blog dedicated to marketing that book, and Barnes and Nobles sells the brand new audiobook version for $5. How do you compete with that?

Does Seth need to use such a low price point? Nope. He just wants his idea to spread as fast as it can.

He creates significant value then gives it away. It gets him more reach, which he can use down the road to monetize any way he wants, from corporate consulting to starting up a network site.

Not that Seth would need to do this to get read, but I have seen other marketing experts buy thousands of their own book and give them away so they can make the best seller list. Exposure leads to more exposure, which leads to both trust and opportunity.

The web has so much free content on it because the links and attention are so important.

There are at least 6 big reasons selling information is hard

  1. there is an abundance of information

  2. many types of information have serious hidden biases or costs that allow a person to create something that looks rather valuable while not being so
  3. search makes it easy to find an answer that is good enough
  4. many packaging formats (ie:newspapers) are becoming irrelevant
  5. blogging makes it easier to consume information free, in convenient bite sized chunks
  6. attention has value which can be leveraged in many ways, allowing you to discount the price of information to keep gaining attention...look at how much people blog every day

If even seasoned marketers near the top of the game are giving away a lot of value you have to give away a lot to gain enough traction to get enough mindshare to make it profitable.

Earnings Per Page

If you have a site where it takes little effort to update it then the number of pages a site has is not a big factor, but if you are buying a website that is sold as an authority the number of pages is a crucial factor to consider.

Less is More:

More is better is not always true. The two most recent interesting looking sites I have seen for sale recently have been non-appealing because they have SO MUCH CONTENT for their traffic stream. A friend of mine has a 20 page website that gets 1,500 uniques a day. In the same vertical a site with 20,000 pages is getting less than double that traffic stream.

Is the 20,000 page site an authority site? If it is, it is one that has a bad content management system, duplicate content issues, and internal architecture problems. I could clean those problems up an increase traffic, but if the first thing you have to do when you buy an asset is to gut a large chunk of it then you might be just as good off starting from scratch.

Why Less is More:

I don't mind buying smaller sites that I can extend out. One friend of mine runs an AdSense site that was about 30 pages a year ago and made $600 a month. As he extended it out to a 1,000 page website (while marketing it to keep building authority along with content) the traffic went up 40 fold and the earnings went from $600 a month to $750 a day.

That 20 page website I mentioned above is being fine tuned to earn more right now. If it was extended to rank for a couple related terms that are not yet heavily targeted it could double its earnings by adding another 10 pages of content to the website.

Track Your Growth:

The last thing you want to do is add so much low value content that you spread your link authority so thin that you best earning pages no longer rank. As you add new pages make sure you consider their effect on your supplemental ratio, and how your internal link structure is flowing link authority toward your key pages.

If you are building your own site make sure you track traffic streams and earnings and base your internal architecture around maximizing those while keeping the site looking legitimate. If you test something and it does not perform suppress its roll in the site navigation while building more authority. Keep testing extending the site in other potentially profitable directions.

Getting Rid of the Garbage:

If you buy a site off someone else you are buying

  • the domain name

  • the brand
  • the site age
  • the link authority
  • the content
  • the traffic and revenue streams
  • any upside potential you see that the market does not see (and thus does not value)

If you buy a site which has limited earnings for its size, when gutting out the bad content you need to first see what is worth keeping. The easiest way to do that is

  • track conversions to see what pages are profitable

  • see what pages have quality backlinks (using Yahoo! Site Explorer, or maybe sign up for Google Sitemaps)
  • look for pages with surprisingly large traffic streams or other indications that they could become self reinforcing authorities that garner recurring links.

Some of the content may also be valuable, but just underperforming because the site has so much more content then authority. In that case, don't gut useful original content, just ensure that you focus more effort on building the site's authority before you bulk up the site with more content pages that won't get indexed or ranked.

Are Google's Search Results Algorithmic or Editorial?

Google has been progressively eating their own search results with...Google.

I hate to use Avril Lavigne as an example, but I am about to go to a sweet concert, so maybe this is ok. Looking at the following searches, notice how Google is promoting Google or sites that are editorially selected and trusted by Google.

Their music service promotes trusted resellers, their news service promotes trusted news sources, and their top ranking YouTube pages (promoted externally and internally and algorithmically favored) will eventually consist largely of trusted content providers.

This self arbitrage and backdoor partnerships as organic relevancy work on core popular search phrases:
Google Eating Google.
and it scales on through to less popular phrases that are hot right now:
Google Arbitraging Google.

If you didn't understand what I was talking about in Google Closing the Window of Opportunity, the above images should do a good job of showing how search is moving away from purely algorithmic to an editorial blend approach, and how Google is making itself a leading vertical search engine in many verticals.

The easiest way for Google to be perceived as relevant is to make it easy for other authorities to want to talk about Google as being innovative and relevant. If Google is willing to send significant traffic to trusted sources how could those sources do anything but trust Google?

Banner Blindness Extends Beyond the Banner

When looking at the difference between a profitable business model and an unprofitable one you really need to look at the math. I recently ran many graphic ads that I bought through Google on a CPM site targeting basis. Here is a look at one campaign: Banner Blindness.
Notice that the 468 by 60 got a much lower click-through rate than the text ad or other image ad. Why? Some of it may have been up to ad positioning, but part of it is also due to 468 by 60 being the default banner ad size. If it looks like an ad people ignore it.

Just like the 468x60 banners are being worn out, many sites are selling overpriced 125x125 ad buttons. These are not selling because they offer great value, they are selling because the trend started at a few popular sites, and it is easy for the publisher to ask for a lot without giving away too much value.

Low value sites that feature targeted ads as the content (with in content text links) will earn more than high value content which has obvious ad units located in obvious ad spots.

And just how people grow sick of advertising they also grow sick and tired of abused methods and formats, such as:

  • pop ups and other intrusive ads

  • red headlines
  • squeeze pages
  • sensational headlines

If you want to make your marketing successful, leverage techniques that are not perceived as being overused and abused to members of your target market. Rather than formatting your ads like ads turn them into content that is formatted like other content people trust and get people talking about it.

Hate is Great

Brian Clark posted an entry about how a common enemy strategy can help propel your marketing and further establish a bond between reader and writer.

Effective marketing in a low-trust world means developing a bond with your prospects through your writing. One great way to do this is to share a perceived common enemy with your readers.

We are all flawed. If people feel an emotional bond to your words they will trust you and buy from you much easier than if you are selling without any personality. Even if you are not actively selling anything, having mindshare and distribution is important for when you finally decide to sell something. Everyone is selling...their products and services, ad space, their view of the world, their self-esteem, their need for connection, etc etc etc.

One of the most effective hate marketing campaigns I have ever seen is John T. Reed's anti-guru reviews.

Domain Authority, AdWords Quality Scores, & Parasitic Business Models

As more large trusted publishers launch ad networks will this force Google to rethink their authority heavy algorithms and ad quality scores that benefit these growing arbitrage plays? Or is Google promoting many small ad networks to spread the portion of the pie that they don't control really thin? Shopping sites like Shopping.com, Yahoo! Shopping, BizRate, and NextTag already dominate Google's organic search results and paid listings.

Ask.com just announced their contextual ad network.

Amazon.com just had a solid quarter, and is selling ads directly via ClickRiver.

Why are ads on Wikipedia unthinkable? Because Jimmy Wales is gathering authority and content, waiting for his search project to launch. Don't be surprised if the Wikipedia contains ads soon after Wikisaria's ad program launches.

How many ad networks will online marketers be willing to sign up for?

If you think the web is full of spam now, wait until you see what it looks like when all the large brands put ads in the content, and when shady publishers have a dozen different distributed ad networks to chose from.

Merging Search Engine Optimization and Domaining

Frank Schilling posts his thoughts on SEO while Brian Provost posts how to turn a .org into a .com:

My strategy for .com domain names has generally been to stash them away and forget they exist. I’ll take my SEO skillset and go develop the .org or .net cousins to build the exact same audience thanks to the overweighting of exact match in search engines, leaving the .com domains in the vault to appreciate.

If you are developing an online brand worthy of attention and can't afford the target .com you probably do not need it. Look how popular Del.icio.us got with their terrible domain name. Eventually they got the .com, but they made that investment after they proved their model worked.
Frank posted that he thought SEOs try to think of how they can game engines

Domainers think: "How can I exist without Google .. if Google blew away tomorrow, how could I guarantee traffic delivery?" .. SEO folks seem to think, "How can I get free visits from the top search engine and if that top search engine ever changes, how can I get free traffic from the next top search engine."

I don't think SEOs just look at Google for traffic. I think some of the best SEOs think of the web more in terms of the Cluetrain Manifesto, viewing the web as a series of markets and conversations, realizing that if they are frequently talked about then search rankings are a by-product of that.

If you are just getting into domains right now and want to develop sites that will get ranked you are far better off buying .org or .net domains, and saving the money the .com would have cost you to spend it on marketing and development of your .org or .net. If you are trying to predict new markets that you expect to become huge you may want to buy the .com. If you want to lock out competition buy all 3 extensions.

Happy Waiter vs Sad Waiter

I went to the city with my girlfriend today. When we ate lunch we were both surprised by how happy the waiter was, then we realized all the waiters were happy. Last night we grabbed a late night snack. We overheard our waiter saying "bus boys taking the tips. need to have their damn thumbs broken."

Both waiters were serving food. Why was one group so happy while the other was so sad? The first was in an upscale trendy part of town that likely tips well. The later was at a Denny's that was so sketchy that they even have Brinks security guards at night. When a person is new to business and struggling to get by they will take just about any business they can get, but as they satisfy those needs they move away from things that inspire thumb breaking anger toward things that aid happiness. Who you work with and for is just as important as what your goals are.

Pages