The Economics of Credibility

Everyone who is popular gains detractors along the way. And detractors tend to flock together and vote for other people who share their opinions. That trend virtually guarantees any valuable brand will have dirt ranking somewhere in the search results. The more valuable the brand gets the more people who will gun to unearth the dirt.

With so much competition for attention, many publishers believe they need to offer bold predictions quickly in order to be remarkable. And when those predictions go wrong people are creating documentaries about how wrong you are. Jim Cramer recently mentioned that Bear Stearns was fine right and talked about how unsophisticated the naysayers were (and how they never did their homework)

Days after Jim said Bear Stearns was fine, they were bought out for pennies on the dollar. Not only does Comedy Central offer their take, but other mini-documentaries and flames have appeared

The Daily Show

The Daily Show With Jon StewartMon - Thurs 11p / 10c
In Cramer We Trust
www.thedailyshow.com
Daily Show Full EpisodesPolitical Humor & Satire Blog</a>The Daily Show on Facebook

Fox Business Ad

If you are a publisher and your business model requires you to find new customers every day then you need to keep competing for attention. In many markets that will put you in a Jim Cramer-like position where you end up making some bad calls that cost you a lot of money in the long run.

How Much is 1 Website Visitors Worth to You?

Part of the reason so many people beg, borrow, and steal for search engine traffic is because so many people have the same thin business models offering the same stuff. Rather than thinking of ways to differentiate or look within for ways to increase value, we figure just getting a couple more links will be all we need to do well. And it may be in the short term, but that is not enough to stay competitive.

Most websites are not set up to convert...even many well known sites ran by marketers (who should know better) do a poor job of converting. And improving conversion rates means you can buy more traffic or brand exposure (affiliates, AdSense, direct ads, paid search, partnerships, and public relations). When I changed the business model of this site there was an initial rush of sign ups, but then that fell off quickly. By spending a couple hours of research, writing, and marketing on this site I have since doubled the daily number of sales, not once, but twice.

At a minimum there are still 3 big holes in my sales process which need improved. But within another month or two I can see the daily rate of new sales with a recurring model exceeding the sales rate from a one off product that was sold at a cheaper price point. It almost seems criminal when you think how hard it is that we have to work to gain mindshare and marketshare, and then just throw away the value by not optimizing our sales process and sales funnels.

My wife is at a conversion conference hosted by these guys. Hopefully I can bug her to make a post or two about all the stuff she learns. And hopefully she can help double our daily conversions again, at least until we sell out.

Link = Vote? Want Some Personalized Free Professional Help?

Last week I got this via email

Hello,
How would you like getting a logo’s (or) icon’s (or) seo report (or)template (or) Banner (or) Article (or) Header designed free of cost for your website. We are giving away these services as a promotional measure for free of cost. In return we need a link at your site for each services at home or internal page(Except link,resources,directory pages).

So to get a new services all you got to do is mail us back with the confirmation of link and the page where the link added for our site. If not interested in any of these offer,and interested to do three-way link exchange,please feel free to mail me back.

Awaiting for your reply,
Jeena.

Notice they were willing to trade just about any web based service imaginable for a link. A shotgun approach, but good for a few links I suppose. ;)

And today I got this, which is a bit of a higher touch and more focused approach.

Hi,
I recently started writing work for ______ as a content writer. I would like to write a guest post related to education/college/online education etc. on your site if you're interested in accepting such a post. If you are interested, please let me know and I can send you an article for you to look over.

The Deal:
I will write a good, useful posts/articles on education/college/online education etc. specifically for your website/blog, free of cost. But I will need a by-line to build up my writing career. In addition, there will be a link to the ______ site in the by-line. So, it will help all parties concerned.

Sample posts written by me:

  • linkbait A
  • linkbait B

Both articles were widely read and received numerous links from other bloggers. Thanks for your time and I am looking forward to your reply.
Thanks,
Susan Jacobs

The nice thing about receiving such emails is that if they reference their site and you compete with them you can simply set up a couple link searches from blogs to track down everyone that accepted their offer and then get links from the same sources, replicating their strategies while hoarding your own unique link sources. As a Technorati top 100 blogger or an SEO service provider you also get requests like these from people who do not know you own competing sites. This is yet another advantage of being well embedded into the web: you see new marketing strategies within days or weeks of them emerging.

This is also scary for businesses succeeding based on a low price-point strategy. Eventually a similar product or service will be available free (or with a hidden cost that only reveals itself down the road). You are better off charging twice as much and having half as many customers, as mentioned here:

On the drive to lunch I’d ask Ralph why he wouldn’t fill the order when we were making 20 or 30 percent margins on that ton of glass.. “Because they can easily afford to pay more” he’d say.. “and once I sell that crate it’s gone, it will take 3 months before I get another crate.. somebody else will buy it because it’s a specialty size with low cut-loss”, and if I sell it at that price, next time he’ll ask for another nickel discount.. “

The fact that people are trying so many different strategies to get free links show how powerful Google's fearmongering campaign against paid links is, and just how detached from reality the idea of link = vote is in a marketplace where everyone either knows that link = vote OR is gamed by someone who knows that link = vote.

Nationwide Google Wireless ISP Plan, Try #2

After they bid low and lost the C block of wireless spectrum Google has started talking to the media about using unlicensed whitespace. From the WSJ:

Google said that the white space, located between channels 2 and 51 on TV that aren't hooked up to satellite or cable, offer a "once-in-a-lifetime opportunity to provide ubiquitous wireless broadband access to all Americans." In addition, opening up the spectrum would "enable much-needed competition to the incumbent broadband service providers," Mr. Whitt wrote. Google has done its own white-space testing and submitted its results to the FCC in December. Philips also submitted a testing device to the agency last year, which returned satisfactory results.

Cheaper (or free) nationwide connectivity = more web users. More web users = more searches.

The other (big) piece of this, is that if Google works this deal, they will likely end up with a lot more usage data - and a strong starting point to triangulate other usage data against. With links becoming a commodity, how hard would it be for Google to find a better signal? In 5 years will they still rely on links and have 10,000 people rating content? What if they could somehow get everyone to start rating content (through usage data), and place more trust on natural looking Google user accounts with years of a natural usage profile. If they slowly mixed it into the relevancy algorithms over time who would even know they did it?

If Google does set up a free ISP think how much usage data they would have.

  • Google ISP (usage data, geo-specific relevancy)
  • Google Android (more geo-data)
  • Google accounts (which users can we really trust, what do they buy, etc.)
  • Google toolbar
  • Google search
  • social applications (Gmail, Google Talk, Orkut, Google Gadgets)
  • Google AdWords
  • Google Checkout (track sales volume, return requests, etc.)
  • Google AdSense
  • DoubleClick (thanks for the reminder Dan)
  • Google Analytics
  • Google Feedburner feed distribution
  • Google reader
  • iGoogle homepage (along with Google Gadgets)
  • Google YouTube (embeds, views, subscribers, etc.)

In that type of market, effective SEO morphs into marketing. Until that day comes keep link spamming building!

Idiocracy in Action :)

Idiocracy is a disturbing movie about marketing leading to a dumbing down of society. In many ways, marketing seems to be heading down that path.

Using Twitter today made me further appreciate something Nick Carr mentioned, that as we use computers more we begin to think and act like computers. Short bursts. Logical but detached. Devoid of context. Always engaged in something, never fully engaged. Doing whatever is in front of us, etc.

With marketing being so easy to implement and measure, and every creator (and their dog) learning public relations, every day the web is becoming a bit more like the Guinness Book of World Records. This corn flake sold for $1,350 and this lady was stuck on her toilet for two years. And both of those stories were featured on CNN!

Content producers are trying everything to be remarkable. Some articles are so long that nobody will ever read them (the top 37,549 way to making money online, guaranteed) are being complemented by marketing strategies that aim to simplify complex topics into emotion driven sound-bytes, likeso:

State officials would not let Pro-Life, formerly Marvin “Pro-Life” Richardson, use his middle name on the ballot when he ran for governor in 2006. Secretary of State officials said the state’s policy prohibits slogans from being on the ballot.

But this year Pro-Life, a 66-year-old organic strawberry farmer from Letha, is running for U.S. Sen. Larry Craig’s seat as an independent. And because his full and only name is Pro-Life, the Secretary of State has no choice but to put it on the ballot.

Brawndo, the fake energy drink from Idiocracy, has actually became a real product. Here is one version of the future of marketing

Official - Mahalo is Spam, According to Google's Internal Spam Documents

Google's leaked documents defining spam state:

Final Notes on Spam
When trying to decide if a page is Spam, it is helpful to ask yourself this question: if I remove the scraped (copied) content, the ads, and the links to other pages, is there anything of value left? if the answer is no, the page is probably Spam.

Lets take a look at a typical Mahalo page
mahalo.com/Best_Computer_Speakers
That page has a #1 ranking in Google with 0 unique content and 0 value to the searcher (according to Google's above guidelines).

How can Jason Calacanis create a site that poor while slagging off everyone else as a spammer? *None* of my sites fit Google's internal webspam guidelines anwhere near as closely as Jason's site does here. Will Google engineers make the right call on this spam site? Only time will tell. And the results will be quite telling, especially when inline affiliate ads further pollute this page. The Jason Calacanis spam legacy continues.

May I Write a Post for Your Blog?

I am nearly complete with a couple big projects I was working on for the last couple months (site re-launch and another secret project), and wanted to try a fun viral blogging experiment. If you ever wanted to interview me, or wanted me to guest post for your blog now is your chance. You can choose the topic(s) and I will try my best to answer your interview questions or write a post for your site.

I only have four conditions

  1. your blog must have a non-default theme
  2. your blog must not be hosted on Wordpress.com, Typepad.com, or Blogger.com
  3. your blog must be at least 6 months old
  4. you must love publishing, marketing, SEO, and/or the Internet (or else) ;)

Comment below with your URL and the word "interview" or "guest post" and I will reply to the email associated with your account. First come first serve, and I am not sure how many of these I will do as it may get a little overwhelming if many people say yes. But it is all in the name of fun. :)

I Just Spammed You (or, Why Media Transparency is a Bogus Marketing Strategy)

The First Rule of Marketing

Some people hype transparency as the only effective solution for long-term sustainable marketing success. After they are already successful they can hype such false ideals and get praised for them, which only adds to their misguided notion of marketing. The truth is everyone wants to be influenced, but nobody wants to feel like they were influenced.

A Marketing Experiment

A few weeks back a friend of mine ran a linkbait announcing the best photography blogs on the web. And then he announced on his other blog that he was trying an experiment in using flattery to build links. I commented on that post

The first rule of linkbait is… ;)

Generally people do not like feeling like they are being examined or influenced by marketing. For that reason I tend not to talk about “lets see how it goes” until after the fact, and rarely then too.

What was the outcome of his linkbait? It was successful, at least for a bit.

But then award winners found out about that other post. In short order Dave was getting comments like

I just think you are completely underestimating how many difficult situations we are put in as high visibility professional photographers, particularly when it comes to internet ethics. Between finding our images on other photographers’ sites, finding our names in other website’s metatags without authorization, getting anonymous comments we have to moderate from envious competitors, and then being part of an SEO experiment … the amount of time I spend on unethical internet situations is discouraging to me.

and all the award winners were emailing back and forth about how the award was fake. So he alienated his target audience and someone even hacked his blog!

When to Mention Your Sites

If you ever wonder why I sometimes talk about marketing from a broad perspective without pointing out my sites and specific marketing strategies employed, this is yet another example why. The only reasons to mention your sites, stats, and marketing techniques are:

  1. to drive traffic and help spread viral ideas quickly (it helps if you own a top blogger in your industry)
  2. to linkdrop (a href is your friend)
  3. to improve your own image (especially good when joining trade organizations or donating to worthy causes)
  4. using the media exposure to help build your site's brand and credibility (as seen in goes a long way for building trust and making it easier to get cited again)

Everything is Gamed

Behind the scenes media gaming goes on everywhere everyday. But it is rarely talked about publicly because it benefits nobody for their customers to feel like they were duped, influenced, and/or manipulated. We would all like to believe we are smarter than that...but we are not. If we were, I doubt we would have hunted down and executed a man our country put in power, and maybe we wouldn't be angry at this joke. But sometimes the truth hurts. And sometimes lies kill.

The Blend - 2008 Online Publishing Business Strategy

John Battelle riffs on how Yahoo!, Microsoft, and AOL are screwing up by following in Google's footsteps trying to create huge ad platforms, while ignoring their brand ad strength. And AdAge asks if we may one day see a web free of push display ads.

If traditional ads become less effective, we will still end up trusting ads that are links that look just like content. How to article linkbait, user generated content, and 100% blended affiliate links now make up the Mahalo business model. Which is really no different than the affiliate marketing Jason despises. That really puts a new perspective on somebody lashing out at SEOs and affiliate marketers before creating something that aspires to be more polluted.

[UPDATE: Yahoo! Search also is getting into the blend more aggressively, allowing brand advertisers to drive potential customers to branded Yahoo! Search results. More information on Search Engine Land, and an example Y! search for Honda here.]

Understanding "Organic" Link Building in 2008

Michael Arrington, writing about how many blog networks are trying to raise capital, describes the natural state of linking on the web:

And now that the big guys in the Gang are being injected with capital, hiring tens of employees and expanding their businesses, they suddenly have a lot more to lose. Linking is never done just because. Rather, links are your political capital that must be expended appropriately. Don’t link at the right time and in two weeks when you’re pushing your own headline, you’ll wish you had. When you stop seeing other blogs as people you admire and want to discuss things with, and start to see them as your competitor, your brain shifts and you stop linking the way you had previously.

Luckily, the newbie bloggers are there to fill in the links when they’re needed. That’s why, if you are a mid-level blogger, you are likely courted by the bigger blogs looking to get your support. If you know what’s going on and are willing to play the game, you can see your blog rise very, very quickly. Choose the wrong blog, though, and you may find yourself alone and lonely in your forgotten blog.

Launch something new? You better beg at least a dozen people to help spread it if you are in a saturated market. Hopefully you just them some favors too! This fending for your own self interests + backscratching is the new reciprocal link. Depending on how selfish we get, bloggers could make the mainstream media irrelevant or just make ourselves irrelevant.

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