Losing Self Respect, One Conversion at a Time

If you mimick leading marketing in your filed, then deflect the blowback from the effective marketing onto others who gave you the tips that helped you increase your conversion they may not appreciate that:

We also have inline ads, ala Aaron Wall's suggestion (so blame him if you're angry )

If you have a professional copywriter suggest revising your content, then state that using similar marketing to their past work is below you they may not appreciate that:

Aaron Wall told me his conversion rate after switching to a page format like this has sent his sales skyrocketing to unbelievable proportions. Yes, this saddens me, but it's also inspiring - if they can do it, so can we, right?

Well, maybe. But we've got to be willing to sacrifice a bit of self-respect and dignity to get it done.

Then if you hold a marketing contest, saying anything goes you are bound to raise a few eyebrows

Anything goes, dude. We're looking for the best-converting page, and if you think the best way to get conversions is with flying monkeys and marquee tags, then have at it!

In every market controlling conversations is associated with trust and authority. That is why framing issues, business models, and sales techniques is so important if you want to prove your model is better than competing models. Few people claim their own businesses are bad.

Few people think of the Google Toolbar as spyware if it is marginally useful. Stop Badware, the non profit reporting on spyware, is not likely to make a report criticising Google's Toolbar or search helper redirection so long as Google is their lead corporate sponsor. The attempt to portray honesty and openness is sometimes more important than being either of them.

Rand recently created a landing page contest, but the problem with this sort of contest is that the very act of making noise increases sales, but it also makes your traffic stream dirtier and less consistent. After Brian Clark rewrote my salesletter he quickly became one of my top affiliates. His reach and brand increased my reach and brand, but it also led to many others writing about me, and more people searching for my brand...some of those traffic sources were really clean while others were less so...perhaps less interested and more driven out of curiosity or following what was popular at that point in time. Plus those that were pre-sold on Brian's site probably didn't need any salesletter at all to convert. The fact that he wrote it made his readers convert exceptionally well though because his copy is in tune with his readers, and they already trust him.

I had to wait on testing the results because I had too much temporal noise around my brand to provide accurate short term testing results. Inadequate data sampling provides inconclusive data. Even A/B split test results that are allegedly 95% certain are wrong 1 out of 20 times.

As John Andrews stated landing pages are only one part of the marketing mix. It is hard to track conversion for high touch and high trust products or services using multivariate testing while allowing others to write your conversion copy. Unless they write your ad copy, a sales letter, conversion funnel, and bonus offers that are consistent with your brand they are throwing darts at a wall. It may create conversation, builds your reach, boosts your brand exposure, give the perception that you are open, and can give you a few good ideas on how to improve conversions, but likely the test will bear false results, especially since brand positions and sales techniques are so temporal and few people willing to write free copy understand all the nuances of effective sales techniques.

If your are going to "sacrifice a bit of self-respect and dignity" you might as well get meaningful results out of it Rand. ;)

Ad Networks as Spyware Providers

I recently posted about the online security wars, a trend which will continue to grow as spam filtering improves. The WSJ recently ran an interesting article about ad networks distributing spyware:

In May, a virus in a banner ad on tomshardware.com automatically switched visitors to a Web site that downloaded "malware" -- malicious software designed to attack a computer -- onto the visitor's computer. ScanSafe Inc., one of the first security firms to discover the virus, estimates the banner ad was on the site for at least 24 hours and infected 50,000 to 100,000 computers before Tom's Hardware removed it.

As traffic streams consolidate and ad networks improve in efficiency many people who get marginalized are going to get more insidious in their attempts to make money. This fear will further consolidate web traffic toward trusted brands and place a premium on central ad networks.

The Benefits of Using Google's Custom Search Engine

I recently installed the new business edition of Google's custom search engine. It took about 5 minutes to set up and will likely pay for itself many times over. You can use it by using the search box in the right rail. Google's custom search engine is easy to customize, fast to implement, works across multiple domains and is cheap. It only costs $100 a year for up to 5K pages and $500 a year for 50K pages. It also allows the owner to see search frequency and your most popular queries.

Rather than doing Google site specific searches, now I can see Google flavored results customized to my site right from my own domain. If I am searching for something on my own site and can't find it, the odds are pretty good that I am not going to show up in Google's global search either.

Using Google's search will likely also help you figure out how well they trust different pages on a site or a subset of sites, as it likely factors in link popularity and other off site relevancy measurements (unlike most site search services). If your site is easier to search it is easier for you and others to cite your archived content.

Using search results with the same format as Google's will also show you how compelling your documents look to customers on Google, from a searcher's perspective. Some consumers may also view your business as being more Google friendly if you use a Google site search service. Their awareness of and affinity toward Google's brand may help increase your conversions.

When Niche Market is the Wrong Advice

Andrew Goodman wrote a delightfully good column over at SEL about how and when going niche is wrong. He noted that the advice to go niche typically comes from niche market thought leaders and people selling information products who tend to think everyone else is just like them.

The reason people push the niche idea are:

  • it is easy advice to give

  • overestimating the value of our own experience
  • the web has many self-reinforcing effects that favor market leaders
  • it is hard to conquire a big field until you have proven success and gained confidence from conquering a smaller niche
  • it doesn't take much to get past self sustaining if you focus on something you are passionate about
  • it is harder to get burned out working on something you are passionate about

It is a mistake I have made many times, but it is easy to speak of your own experiences as truth, especially if you are expected to write nearly every day. Focusing too tightly on a niche for an extended period of time makes it easy to become inauthentic, inaccurate, boring, and/or pessimistic. Those are obvious to anyone who reads frequently, and they are counter to what allows companies to expand:

We can certainly see how small to midsized retailers—online and off—who undergo recognizable and surprising spurts of growth, seem to have something in common beyond the executional wisdom and recruiting skills of the larger enterprises that Collins tracks in Good to Great. That intangible seems to be: contagious excitement.

The market for something to believe in is infinite.

If you are making 50 websites it is likely that you will be more successful if you focus on one or two of them before building out all the others, such that you incorporate learning from your first few sites into your later sites. Why repeat all the mistakes? In the same sense, it helps to conquer one market position before going too broad. When I started on the web I wanted to know a lot more about search than I could have profitably done, especially since the market already had clear market leaders with momentum, social relationships, media relationships, strong brand, capital, and knowledge advantages over me.

After I niched down to SEO and built a brand I was able to create numerous revenue streams (consulting sales, ebook sales, direct ad sales, contextual ad sales, affiliate commissions, link sales, referral commissions, speaking engagements, etc). It is also easy to further leverage my knowledge gained building this site to provide more revenue streams away from this site. I have a network idea I want to launch soon, but it still needs some work.

I have long been a fan of parallel markets after attaining self reinforcing authority status in a core market.

Google Ringtone Search (Beta)... the Utility of Search & the Value of Relationships vs Data

Google recently announced they are offering an ad free search service to small businesses for as little as $100 a year. They are also rumored to be working on creating a mobile search offering to search for ringtones, cell phone games, and other high margin cell phone services:

With the new system, users would search for a piece of content -- such as ringtones -- and would get back a list of companies that provide it, with links letting them easily purchase the material. Eventually, Google would charge companies for high placement in the search results, much as it does with "sponsored links" on Web search, the people familiar with the company's plans said.

If this proves effective, why wouldn't Google create search services for real estate and student loans? Off the start they likely wouldn't be any dirtier than those markets already are.

The local sites (or other niche sites) that die are the ones that don't have a supportive community...the ones that can roughly be described as data. But as you move your site away from data toward community building and user experience you increase its marketability, profitability, and longevity.

John Scott recently said

when the Internet becomes a community more than a marketplace, the community oriented merchants have the advantage.

Most general music lyric sites will lose over 90% of their traffic and value in the next 2 years. Niche value add sites like SongMeanings.net will increase in value.

Some newspapers are fighting off their own irrelevancy by publishing more ads, and becoming more irrelevant. The reason WSJ.com is worth $5 billion is because it will be one of the last newspapers surviving after many competitors are marginalized. Its brand and business relationships make it unique.

The next step for search is moving away from age and citation based trust toward user satisfaction based rating. In a recent interview Jakob Nielson said:

Of course, the big thing that has happened in the last 10 years was a change from an information retrieval oriented relevance ranking to being more of a popularity relevance ranking. And I think we can see a change maybe being a more of a usefulness relevance ranking. I think there is a tendency now for a lot of not very useful results to be dredged up that happen to be very popular, like Wikipedia and various blogs. They’re not going to be very useful or substantial to people who are trying to solve problems. So I think that with counting links and all of that, there may be a change and we may go into a more behavioral judgment as to which sites actually solve people’s problems, and they will tend to be more highly ranked.

Part of that will include collecting user feedback and personalizing results. For the commercial parts of the web, much of this will be done by search engines pushing more aggressive ad units (while using non-ads to test how far they can go), licensing content from premium publishers, and making more transactions direct to funnel traffic internally while minimizing the downside of bait and switch marketing. If Google controls the transaction they know the lead value AND the customer satisfaction stats. If something that was once good becomes spam Google controls distribution and monetization, and can kill it without a second thought.

If you are in a market that is likely to get commoditized what does your site do that makes it more than just data?

Compete.com Search Analytics is Amazing

I recently got a beta account to the upcoming Compete.com Search Analytics tool. I am not sure of their pricing yet, but Jay Meattle, from Compete.com, told me "the price points will be extremely attractive to small business owners."

You can get leading category based keywords, top competitors for a given keyword (exact or broad match), compare competing sites head to head on keywords, and get the breakdown of traffic sent to any website.

How Accurate is Compete.com?

Their model of data collection is going to make their data more accurate for frequent search terms and larger sites, but I tested their keyword data against some of my smaller sites and it was surprisingly accurate.

How to Clone Smaller Competitors

This is yet another way authority sites will pick off smaller competing sites. It is a simple process. If your site is one of the most authoritative sites in your space you can clean up.

  • Use Google's site targeting ads stats to check what sites are running AdSense and getting a lot of traffic (you don't even need to buy ads on them to do this)

  • Go to Compete.com to get the top keyword phrases competing sites rank for and create content targeting the same keywords. You can also run the keywords through Google's Traffic Estimator to sort the keywords by Google's value estimates.
  • Beyond that, you can run Google's site targeted ads or general contextual AdSense placement reports to find out what pages are the most popular on competing sites, and then create content covering the same topics.

Lowbrow webmasters are fast becoming the outsourced market research department for bigger, more technologically advanced, and cash flush companies.

The Effect of Better Competitive Data

All of these analytic services are going to increase the value of domain authority (since it can be easily leveraged for greater profit) and force webmasters to move themselves up the value chain (since models like AdSense give away too much competitive data, especially when combined with Compete.com).

Other Ways to Use Compete.com

  • Compete can be used to see how strong a brand is in its field. The top keyword in the credit card category is Capital One. Both www.capitalone.com and capitalone.com are also in the top 5 keywords. They are obviously a leader in that space. You can also see what percent of a website's traffic originates from its brand related keywords.

  • You can search for a broad match phrase to see how established your site is inside a vertical, how consolidated a vertical is, and how much potential upside you have by increasing your share of search traffic.
  • Compete can also show you the if a competing site is heavily reliant on a few strong keywords or if their traffic distribution is wider. This can be used to see sites worth investing in (especially if you understand search relevancy algorithms) or sites which have a lot of risk and are worth avoiding.

Cory Doctorow Speech at Google

Cory Doctorow spoke at Google a few months ago. His speech covers IP protection, copyright law, DRM, and international trade laws. It is well worth a listen for any web entrepreneur, especially those considering getting published.

Speaking at the Domain Roundtable

Jay Westerdal recently invited me to speak at the Domain Roundtable, a domaining conference held in Seattle from August 13th through 15th.

If you would like to attend here is a code for $100 off attending: domainseo. That is not an affiliate code, just a coupon code.

Would You Trust a Business Domain Registered via Proxy?

Someone recently left a comment on my blog promoting a new keyword research tool that is registered via proxy. The competitive analysis keyword research tool has been marketed heavily via comment spam, and currently shows itself as bidding on 0 keywords, per its own competitive measures. The site gives no data about who owns it. Could it appear any less legitimate? How do marketers create market research tools espousing the value of something they are not doing themselves, then market it via blog comment spam? It isn't hard to send an email or buy a review. If their service is worth $90 a month (their current price) their marketing budget should include some money for paid search and public relations. They could at least have a blog comparing seasonal data and data from different companies the way Hitwise does.

The easiest way to show the value of your offering is to eat your own dog food. That is why ReviewMe bought a bunch of its own ads to help the site go viral at launch. There are so many ways to market ad networks or competitive research tools that there is no point creating one if the marketing strategy starts with the likes of blog comment spam and/or cold calling.

Comparing the ROI of Online vs Offline Investments

I am sure I have made similar posts before, but I live in an 8 unit townhome, and just down the street they are hauling away part of a mountain to make room for another one of these. Each of the 8 units has a rent of $2100 a month, which comes to a total of $16,800 a month.

Their costs include digging up the mountain, hauling away the dirt, permits and licensing fees, property taxes, cleaning, land, raw building materials, construction, interest on a loan, etc. By the time they are done I am sure they will have spent at least $5,000,000 to create a small revenue stream. A website I started a year ago took about $50,000 to develop, and already makes more than that building will. The virtual real estate investment required no loans, and the ROI is over 100x greater. If I build a strong enough brand my income stream will grow much faster than inflation and be nearly as stable as the real estate, while owning a more liquid asset with lower fixed costs. If you are aggressive enough, you can scale an affiliate site to a billion dollars.

The best investments you can make are in your own education and projects. As time passes the web will be more like the offline world and that 100x greater ROI will start heading closer and closer to 1. The only ways to prevent that from happening are to

  • keep testing and learning

  • heavily reinvesting in growth and brand building
  • be willing to fail and move on to better markets
  • use technology to automate
  • build a following and create social relationships with like-minded people
  • leverage your current assets to optimize and promote future business

I hope they have fun tearing down the mountain. I am off to get a few more links. ;)

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