InfoSearch Media Reports Quarterly Results

May 13th

From the release:

InfoSearch recently introduced a content licensing model that allows its clients to license the content, generally for a one year period, with renewal rights at the conclusion of the license term. Further, InfoSearch is gradually transitioning the current traffic model through its www.articleinsider.com network from a fixed CPC (cost per click) rate to a bidded CPC rate. After these new initiatives are integrated into the existing business model, the Company expects that they will provide continued revenue growth over the longer term.

I think it will be fun to watch to see what they can make of it.

They have over $4 million in the bank and are cashflow positive, but:

  • business models like Constant Content may squeeze out the marketability of the content leasing business model

  • making their ArticleInsider network an open auction goes against their primary selling point of a low fixed cost. I can't imagine current customers will be pleased with the transition.

    After they do make the transition they become a second (or third) tier PPC service. Looking at how some of those search stocks are doing in the market with lowering bid prices and marketshare makes you wonder how this helps them.

  • after you reach a point in market saturation there are some topics which are not as profitable to create content for. what then?
  • I think creating services or multiple compelling channels that keep consumers wanting to come back is a far better longterm model than profiting from static content.
    • the direct channels get direct traffic and search traffic

    • the direct channels are more likely to build natural linkage data
    • the direct channels, which frequently update, give people an excuse to come back and view more content & ads

It is interesting watching InfoSearch, because I think their business models & being a public company show the constricting forces placed on most all SEO business models.

Published: May 13, 2005

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Comments

Dick Laduka
June 23, 2006 - 5:19am

Well, it's pretty clear now that they couldn't make a run of it. Since going public their stock price has completely tanked (from almost $4.00 a share down to $.30!), the company's founder was removed as CEO, and their financial statements look ghastly. Looks like they'll be out of business within 9 months.

I guess that's what happens when you keep changing your business model.

A Reader
July 8, 2005 - 12:47am

It is interesting. I know a few people who use Infosearch services and they are generally pleased with their performance. So many companies in this industry get a bad rap (and most deservedly so) that it's good to see one that people actually recommend. I asked about the switch to bidding, and they tell me that current customers can stick with their original plan, or switch over to the bidding system.

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