Google: Blow Out Q1 2005 Results

In after hours Google shares are trading at over $220.

Google's first-quarter net income rose to $369.2 million, or $1.29 a share, from $64.0 million, or 24 cents a share, a year earlier. Profit from the most recent quarter included a $49 million charge for stock-based compensation.

Gross revenue nearly doubled to $1.26 billion from $651.6 million.

The results easily topped Wall Street's average net profit target of 78 cents a share. Analysts had seen profit excluding some items at 92 cents and revenue at $1.16 billion, according to Reuters Estimates. source

Review of The SitePoint Search Engine Marketing Kit by Dan Thies

A while ago I bought Dan Thies's Search Engine Marketing Kit because I think Dan knows his stuff pretty well. Many people miss out on the fact that if you make your product just a little better by understanding what other related products are on the market and learning even just a few things from them you build significant longterm value.

There are some sectors of his kit and my ebook that overlap, but many sectors do not directly overlap.

things I liked about Dan's kit:

  • You can tell that he wants to help people do well. Self promotion is kept to a minimum. It is also obvious that the book is based on years experience.

  • Branded as the keyword expert it is no surprise that he covers keyword research in depth.
  • Throughout the book he reinforces how much the reader has learned. I think my ebook would be improved if I added a few more of the reinforcement statements like that.
  • He offers a good amount of tips on setting up and selling an SEO / SEM service. I think his goal when making the guide was to create something similar to the Web Design Business Kit for SEM.
  • He provides sample documents for prospective SEO businesses. Such as service agreements.
  • Most of his guide is wrote in a manner that it will not be outdated in a couple days, weeks, months, or years.
  • Talks a good amount about server, duplicate content, and technical issues. This is an area where I could improve my guide a good bit.
  • Has some useful interviews in it.
  • Focused on big picture concepts, not irrelevant and/or short term solutions.
  • Well edited.
  • I end my ebook stating that I think people should continue reading and learning about the web as there is no one source that is going to teach you everything to make you do well. He also did that and I think that is a necissary mark of a good book in this space.

things I think could be better:

  • The kit could focus a bit more on creativity, especially in the link building area.

  • Although we are both willing to mention them, he and I both do not usually use or recommend the most aggressive techniques. I think me being indepenant gives me a bit more leway though. For example, I can say I don't think most people need to cloak, but if you do chose to cloak go with the best, Fantomaster.
  • Dan could have done a bit more to talk about some of the social aspects of the web. Some of his examples and his interview of Scottie did help show some of these types of ideas in action though. I think did a fair job with it, but I think it is an issue that is sorely missed within the SEO community. It is impossible to stress the social aspects of the web too much.
  • The resources area at the end of the guide was a bit thin. I think this was a function of a few main factors:
    • My ebook links to a ton of sites and tools, so that may throw my baseline or expectation off.

    • What is a useful tool today may not be a useful tool tomorrow.
    • He did not intend to create a comprehensive tool list.

    The resources he recommend are useful and best of breed ones though.

  • One of the weeknesses of my ebook was that I did not link to much search research because I did not want to make my book too technical. I later added some links on that front due to people asking more about some of the topics and current research. I think he references some, but it would be hard for him to reference the Google patent that came out less than a month ago.
  • Some of the nuances to link building were not well versed. Of course Google sometimes rolls in almost random penalties and lots of concepts that may change over time. It is hard to be exceptionally in depth on the latest techniques and go through the whole publishing process.

How else our guides differ:

Process: Dan covers the importance of process. I do not stress that in my ebook. My philosophy is that it is easy to get stuck in ruts and the things you do should be efficient and flexible. Proccess makes some things efficient, but you should also spend a good amount of time doing unique things. Creative or original ideas do well on the web. I also think it is important to learn markets and learn how to react quickly.

Freshness: His book was crafted in a manner to where it would not go out of date in a day. That also means that it is not going to be able to go as far in depth on some issues and cover some of the newest techniques.

Target audience:
His book seems to be more focused on those aiming to sell SEO services. My book seems more focused on those who are aiming to buy services. We both overlap in covering those who want to do services on their own sites.

Generally I do not like selling SEO services as a business model. SEO is a flooded marketplace with a ton of scams in it. Most of the prospective clients have other problems and some view SEO as free money. It may sound arrogent to say that over 90% of the prospective leads are no good, but client greed and the invisiblity of the job make it hard to land clients worth working for unless you are smooth at salesmenship. If you already know how to sell stuff why not create your own products and sites?

To me it usually makes sense to build your own stuff and work on your own sites if you can afford to. Sure you may have a few clients off the start, but the quicker you shed service based work the quicker you can look at creating your own products and websites that logarithmically increase in value as time passes.

In each niche market there are opportunities for a few people to dominate. Many markets related to basic functions related to life and humanity still have zero competition. SEO on the other hand is fierce. Everyone sees Google's stock price and wants to get in on making money cheap as possible.

Dan Thies is the keyword research expert. Patrick Gavin is the link broker. Eric Ward is a site announcement expert with tons of contacts. Jen Sleg is the contextual ads expert. Andrew Goodman is the AdWords expert. Jill Whalen is the content SEO. Kevin Lee is a PPC expert. SEO PR is the company that optimizes press releases. Even writing an SEO book by the name of SEO Book meant that I was joining a crowded marketplace. It took over a year to see significant profits. I am not the best at selling services, but if you do decide to sell SEO services then doing following should help:

  • build brand build brand build brand!!!

  • niche your services
  • try to create services where your pay is not reliant on rankings or other arbitrary figures. get paid for results that matter or get paid upfront and create results that matter.
  • do not be afraid to say no to leads
  • create other revenue streams to make up for the fluctuations in demand.

Review of Blogging Equalizer: Crap? or Fake Blogs for the Masses?

hehehe. Jeff Alderson with another equalizer program. Blogging Equalizer is software used for posting links to a blog to get pages on other site indexed.

The software spiders a domain you enter and then spams a blog post on one of your fake blogs to have Yahoo! quickly index all the pages on that site.

I started another blog a few days ago and subscribed to the feed via My Yahoo!, and quickly indexed it. Sure this loophole will be closed somewhat soon by Yahoo! though as marketers create products like this to exploit it.

From his sales copy

And, you should keep in mind, if you're doing the "Blog and Ping" technique manually or paying someone else thousands of dollars to do it for you, then it might take you months, or even years, to make back your investment in time and money...

As far as I can tell there is no reason or value add in buying the software.

  • Most blog software programs can be configured to ping automatically. I believe WordPress already is.

  • You can set up a blog free at numerous places.
  • You can subscribe to the feed quickly via My Yahoo! (which this software requires you to do anyway).
  • Xenu link slueth (and some other programs) can create site maps free.

Jeff Alderson, where is the value add in your blog spam software? Surely the legit blog spam software annoys people and builds link popularity, but I can't see this software doing much to save most people time.

Google Advertising Professional Update

Google offers free link AdWords coupons:

  • Qualified Google Advertising Professionals receive sets of five credits worth $100 each.

  • Non-Qualified Google Advertising Professionals receive sets of three credits worth $50 each.

It also looks like there is a yearly quota of 60 credits. As you sign up more accounts I believe you earn more credits.

You also can link to your qualified profile page, although many SEOs do not see the program as being worthwhile with Google poaching clients from some qualified professionals.

I also find it amusing that the links on the profile page asking these questions

  • How can I tell if a professional is really Qualified?

  • Who has access to AdWords and client manager account information?

are broken links. hehehe. Shows they must have threw this idea together in a hurry or they must not think much of the program.

Google sure is trying to create a lot of buzz before reporting their quarterly results.

Google, Search, & the Web of Trust

This post is a few bulleted points which point at the web of trust Google is trying to build.

  • Google has expressed intent in using user feedback to help define relevancy.

  • They may follow click streams to understand who your sponsors are. (also mentioned in the above patent)
  • Google may be doing a decent amount of temporal link analysis, especially for sites below a certain authority level. (also mentioned in the above patent)
  • Google created a system which stores search history over time. Google may shift how much they trust these profiles based on
    • search volume

    • how well a profile related to other search profiles
    • location based on IP addresses (they could discount the effect of profiles which were primarily created through open proxies or in poor areas).
  • Installing their toolbar means they probably know what sites you own (since site owners tend to visit their sites more often than anyone else).
  • Google has access to registrar data. This can likely be used to help determine if and how sites are related.
  • Google runs the world's single largest distributed ad network. If you use that network they know what sites you are marketing. They know what markets you are in.
  • Google has been filtering or banning sites which have unnatural linkage profiles.

PageRank was broken from the start. The concept they were going after may still well exist though if they can get enough users of their search history tool. While other search engines still seem relatively easy to spam Google may be trying to measure web wide trust scores using much more than just raw linkage data.

Google need not stomp SEO techniques out, they only need to:

Some people will be untouchable. They will know enough about social engineering and database programming to where they will still spam Google all day long. I am sure Google realizes that, but they want to continually increase costs to where that is an exceptionally small pool.

As SEO gets harder Google makes more money from ads. As they make more money from ads they can spend more into making SEO harder.

Now if only they could share more data with advertisers to help make click fraud easier to detect. Google bought Urchin. Why not buy, create, or offer something like Who's Clicking Who. Surely Google has the market data and it will not increase costs much to give advertisers more options and more data.

A search company which makes tons of profit organizing data should recognize that by making advertising transparent and making more ad information available they will create a more efficient market which creates more profits. The advertising community would likely police themselves if you gave them enough data and responded to feedback.

Google Personalized (Gamma)

Google Inc. (GOOG.O: Quote, Profile, Research) on Wednesday debuted a test service called My Search History that analysts said is a move closer to personalized search, which is widely considered the Holy Grail for the Web search leader and its rivals. source

to use My Search History you must register at Google Accounts and maintain an active account. Ask Jeeves have had a search history tool for a while now and Yahoo! has My Yahoo! for various personalization effects, although Yahoo! seems more focused on providing news and blog feeds and the like. I think Yahoo! is betting on the abundance of information making subscribing to channels much more appealing than searching the web. I believe Yahoo! also allows you to subscribe to Yahoo! News feeds by keyword phrase.

Personalized search allows engines to better understand users to improve search quality and ad targeting. Whoever is branded as the best market solution on that front is going to make a bucket of cash, because keeping your search history and learning the user raises the barrier to switching search providers.

It makes it hard for another search service to be as relevant if you have tons of personal information already locked in a competing service. This data will be hard to export to other systems as well, as importing huge hunks of data will also allow marketers to import large volumes of spam.

I just briefly tested Google's service. It is fairly slick. You can quickly sign in or out and it adds minimal clutter to the Google home page.

From the link in the upper right corner you are brought to a new page. It shows a calender which color codes your search volume on the right side. The left side shows your searches for that day and the results you clicked on. The my history results that you click on also show up in the Google one box area when you search for similar terms using the regular search results.

Some privacy advocates would likely go nuts with this offering. It is all opt in though. I encourage everyone to sign in, search for seo, scroll past the Japanese stuff, and click on my listing.

Presumably some searchers may be able to build up a search history.
As they build it up it could build Google's trust in that user, which in turn could potentially allow Google to use that user feedback to verify search result relevancy.

If Google decides to use this data - which I think they may - the cost of spamming might increase significantly with how they have been going after automated search tools.

I would not doubt this to do a bit more of globalizing SEO. Paying people in third world countries to randomly click certain sites. I am already building a search history today as a prospective SEO tool.

Business Blog Idea: Search Spamming Secrets

A blog with the latest cutting edge search engine spam techniques. Of course you would probably make more money keeping all the techniques to yourself and applying them, but I bet it could be a paid membership idea where it costed hundreds of dollars a month and potential subscribers would be screened.

If you left some stuff openly avialable (maybe stuff that was on its way out / getting outdated) and then sold the best ideas via subscription it would probably gain lots of linkage data from bloggers and various ethics pundits out of pure hate. Plus just being controvercial makes it easy to get links.

As an upsell the site could also sell various high end sophisticated spamming software. To mitigate legal risks the software could be described as server load testing, ad network testing, etc.

There are probably over 1,000 SEO blogs on the market. I know DaveN knows his spam, but I wonder why nobody has created this idea yet. Or does it exist and I just have not found it, or I do not know the right people well enough?

Flash Design 101 (SEO & Flash)

(or how not to be an schmuck just because you are using flash)

  • Most sites have at least one goal in mind. It is nice if the phone number looks great, but far better if the merchant site ACTUALLY SELLS SOMETHING OR GETS PEOPLE TO CALL.
  • Placing all text in images generally is bad usability and SEO.

  • Just because a feature is available does not mean it needs to be used.
  • Don't disable the browser back button without contacting the merchant and marketer unless you want shot with a shotgun full of rock salt.
  • Have enough decency and self respect to create a descriptive page title for each page. Running all the words together is no good. If you a making a site for Bob Ross you may even be able to work Happy Little Trees into one of the page titles, but creating a title like BobRossFlash with all words ran together is just no good. In that case the trees are not happy.
  • If you test to see if a visitor has flash and they do not maybe, just maybe a one image error page with an image full of text telling them they are all screwed up is a bad call?
  • If your site design is good and the content is of merit some people may want to bookmark the site or pages from the site. Why not embed the flash into html so that the site has multiple pages with unique page titles and textual content?
  • MacroMedia has an SDK which makes flash easier for search engines to spider, but flash still lacks content. add some content in <NOEMBED> tags if you can't add text to the page
  • If by default you generally screw up all the above (and more) and then want to sell a client SEO services for many many thousands of additional dollars you are dishonest and a thief.

Surely there are more, but I just woke up...

What is your least favorite whamodyne flash design errors?

Google Taking Action Against Automated SEO Software

I just got an update email from Leslie Rhode of OptiLink...

A few days ago, Google began to employ a "spyware detector" that will in some cases block OptiLink through the use of a cookie and a human visible "ransom note".

The use of Google from "normal" browsers is not effected -- it is only specialized programs such as OptiLink that are targeted by Google's change with the result that OptiLink can be blocked
from Google for two or more hours.

While this is not a terrible problem as no lasting impact has been found, I am not comfortable with Google being able to discover the use of OptiLink no mattter how "gentle" the counter-measures
might be.

So, OptiLink's Goolge interface has been REMOVED pending a solution to this problem. This has been done for your safety, and for the safety of all other OptiLink users.

Rest assured that this problem will be solved and Google access restored as soon as possible, but in the meantime, you should use the Yahoo and MSN interfaces for your Google ranking analysis.

I am a bit curious if Google is going too far with all of their recent anti-SEO moves. I can't even count how many times I have read that search relevancy is similar at Yahoo! and Google. Webmasters have undoubtedly helped to build Google's brand.

With the extensive filtering that Google does on its linking information, the loss of the Google interface in many cases is not that important.

In general, you can do your linking analysis using the Yahoo or MSN link databases and safely assume that Google has these links as well, but are simply not showing them. The exception to this rule is of course the "banned domain" which appears to be a uniquely Google concept.

Google does provide useless linkage data. Some of the other engines, especially Yahoo!, provide useful linkage data.

The connectivity measurement (or PageRank) that Google shows in it's toolbar is outdated. July of last year I talked to a Yahoo! Search employee and asked why they were not making a reliable Yahoo! connectivty measurement available?

A large part of how Google gained their brand was by creating concepts that were somewhat easy to explain, like PageRank. Why not force them to keep that data updated or take that market position from them by providing across the board better tools that are easier to explain? This also could help Yahoo! gain a much larger installed toolbar base, which may allow them to

  • gain market share

  • collect more market data
  • improve relevancy algorithms

MSN has also been significantly more supportive of the SEO industry than Google, even allowing people to subscribe to search results via RSS.

I understand running automated systems add to system load time and has associated costs, but could that cost be a cheap form of marketing your high margin search service over competing services?

On many fronts I do like Google as a company, but I think their idealism is at least as much of a hindrance as it is a strength.

Leslie also had the following to say in his update:

My Thoughts on the Future

It is certainly well known that Google does not look with favor upon SEO tools in general, and most especially tools that make use of its interfaces, so some sort of reaction is not totally unexpected.

OptiLink has been in very active use and continuous development since May 22, 2002, and has been on Google's "short list" since the moment they called me (true story) just 10 days after it was announced.

When to Trust Someone...

How do you know when to trust someone?

When talking face to face motive is not always easy to judge, but it is usually a bit easier than it is over the web.

Hucksters & Spammers:
Golden rule #1 for me is if you are so good at what you do there is no reason for you to be wasting your time cold calling me.

If you waste my time in any way: bulk email, cold call, random pop up, etc there is no way in hell I want to do business with you. But beyond that it gets a bit harder:

Sales Hype:

  • Tons of affiliates openly endorse crap. They lie about how good something is to make a commission. From what I have seen the single hardest part of being an affiliate marketer is finding someone who wants to give honest advice.

  • Many testimonials are fake or favors for friends.
  • I could probably at least double my conversions by putting a bit more hype in the sales letter, but I feel guilty being promotional at all. Most of the parts of my sales letter which are hype sounding were wrote by someone else. Some sales letters are litterally 40 pages long.
  • I write a 5 start press release for customers, but usually write a 3 star one for myself.

Selling Things:

  • Credit card fraud is huge. Sometimes not only is the price refunded, but your account can be subject to significant fees.

  • Many people sleezeballs buy products and then ask for a refund within the first minute.
  • One of the people who said my ebook was not a fit for them last June just asked me if they could join my affiliate program. Why would you want to sell something you do not like? Certainly there is at least a little bit of dishonesty hidden somewhere in there. But I suppose that is the standard on the web.
  • Others lie to your credit card processor, saying they never got a product and tried to contact you. Some of which even subscribe to your updates and ask why they are not getting updates after getting refunds.
  • Rarely do people who want a refund give a single reason they are displeased.
  • Multiple thoughtful people have copied my ebook and placed it on their site for free.
  • You can place electronic products or other things in formats to make it harder to steal, at the cost of inconveniencing your legitimate customers. I have not done that yet, but as I grow older and less idealistic it becomes easier to see why so many people do.

Helping Friends:

  • I have helped people promote products and ideas only to later find out that defending them was stupid because their actions were short sighted and driven by greed.

    • Even shittier of them, while I was actively trying to help them, they were planning on turning the project into crap and did not tell me.

    • Instead of creating a legitimate business model they now email spam for a living.
  • Other friends pitch a great idea. You help promote it as a partner and then they do stupid short sighted things to destroy the value.
  • Sometimes you can write a testimonial only to find out that other market forces or a lack of updating can make your testimonial quickly outdated.
  • I tried to lend a ton of help and credibility to a friend and now they make the bulk of their living off blog spam. One of my friends had workers manually comment spamming one of my blogs. Not that blog spamming is entirely wrong, but when it is easily traceable is it entirely stupid.
  • You can help others by creating add on promotional guides for your products only to find them write the same price on their site and write the verbiage in their sales copy as though that bonus is the same or better than your main product. Fairly short sighted IMHO.
  • Some friends later are the first to laugh if you or your site fails to meet their expectations in any way. I have not had this happen to me much, but have seen it over and over again. Not that I am generally friends there, but the IHY forums is usually cutting edge in this category.
  • If you help out charities you get many requests that start with something like "My cousin goes to church once every other week..." Can you give me your business model free?

Community Sites:

  • There are a ton of systems set up to automatically spam social networks. The better the network the harder some of them will try to spam. Some are automated, some are manual.

  • Some of the people who work hard to help others build communities are later burned by the same machines they helped build.
  • It is hard to scale labors of love into profitable business models without offending people.
  • If you have a profitable business model and are opinionated some people like to judge you and use the forums or other community sites to market hate messages. It is far easier to make ludicrous statements over the web. Flame wars are a natural part of broken social software.

Various SEO / SEM Related Problems:

  • Link relationships are based on trust. Most link trade offers are bogus and / or automated.

  • Sometimes even paying for a link in a directory is an issue of trusting the owner not to sleeze out their directory, which is counter the the stream many current directories are swimming.
  • from 10 days ago, many other problems in BadRank & the Ugly Side of SEO

For one reason or another I think many sites and many people are afraid to give people something they can trust. Something they can believe in. From what I have seen Danny Sullivan seems to be one of few unifying forces / people in this industry.

How do you breed trust? How do you know who you can trust? Are there some books I should read? Am I screwing up by reading books and so many web pages? etc etc etc?

Hughtrain.

On a related note my favorite T shirt designer just put his limited edition shirts online. YIPPIE! Please look through his collection and the first person who comments below that they want one gets one. Comment below and send me an email with your sizing and shipping details.

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