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
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.

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
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.

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.]

The Future of Selling Media Online - Free then Pay for Popular Content

Select Distribution

I recently mentioned the Sigur Rós Hiema video, which was featured on the YouTube homepage for a day and probably got about a million pageviews. An SEO Book reader named Satish discovered that after the video built up a lot of viral media and link exposure the video was set to private mode.

Google video, as a DRM service, failed miserably. But providing custom hosting for member videos that can only be viewed from certain sites or for a certain number of views is an easy win for YouTube if/when they decide to do so. Google already owns Checkout, so it should be easy to do after they have the right relationships in place.

I predict that if that limited syndication model is available to the masses, a future media pricing system will allow publishers to offer free video for the first X views and then the videos are turned to private / members only / payment required after they get a certain number of views. All the free views build the perceived social value, while being easy to market since the content is originally free.

Sliding Price Scales Starting at Free

Seth talked about taxing latecomers by making events expensive at the end and cheaper for the first few people. And music is priced this way on Amie Street. It is basically the concept of Piracy is Progressive Taxation flipped on its head - make it free to build awareness until people really value it, then let the irrational herd follow along for the ride.

Word of Mouth is the Best Long-term Marketing Strategy

The free then paid model encourages the creation of remarkable content and ensures artists and authors are paid a fair market value for their best work. And it offers a profound business model strategy because as markets saturate marketing gets more expensive and attention gets more scarce - the easiest way to do marketing is just make it easy to use, consume, and share - and rely on word of mouth to do the marketing. And it is far better than monetizing via advertising because it is more organic, and stems from the web's strengths. As Jakob Nielsen said:

"The basic point about the web is that it is not an advertising medium. The web is not a selling medium; it is a buying medium. It is user-controlled, so the user controls, the user experiences."

When there is an unlimited amount of competition consumers are far more likely to buy what is already well trusted amongst the community.

This Type of Technology is Easy to do

The cool thing about my current content management system set-up is I can control permissions for any article on this site. It could even be automated for certain classes of information (ie: only pages, only blog posts, only book pages, only on newsletters, only on a subdomain, sitewide, etc.) ... it is entirely flexible.


You wouldn't want to bait and switch everything you did or you would build up some serious negative karma and some people may not be willing to link at you, but most people will not care or notice. The attention comes and goes, but the links stick. If you turned 10% to 30% of your well loved featured content into premium content I doubt it would hurt your link building much, although your rear end might get sore from your wallet filling up with cash. :)

Is Your Content Solving Symptoms or Fixing Problems?

A normal business practice is to treat symptoms as problems and come up with a wide array of bogus solutions, but content that asks why actually solves problems and creates real value.

Once you look at content creation from that perspective, there are a lot of great content ideas that you will not find on many competing sites simply due to limitations tied to their business interests, or their lack of interest in providing real value to the market.

Free Stuff

Chris Anderson, author of The Long Tail, announced his next book Free, in a featured Wired article.

Speaking of free stuff, Patrick Altoft created a free Wordpress plugin to track which pages on your blog get crawled most frequently. Joost De Valk has a free newsletter dedicated to Wordpress plugins.

Passion is a Prerequisite to Profitability

Aaron likes to give his spiel about passion and that you need to be gunuinely interested in the topics you are promoting. I took that advice for granted and its importance finally hit me. One of the sites I'm promoting is very clean and I have very high respect for its merit. However, I was given the challenge to promote a seasonal yet very important topic for a specific audience. In addition, I was the one to write the content. That was a bit unfair due to my lack of experience in that field. It's convenient to dodge work so I outsourced the content. Besides, promotion is the real challenge. Ok, I was wrong. The final version of the outsourced material needed heavy changes and it didn't satisfy the person who originated the idea.

It Ain't 2005 Anymore

You see, with more webmasters using no-follow and the overall "stinginess" of people linking out, you really need to avoid promoting mediocre content. The stuff REALLY needs to be useful. It helps to put yourself in the shoes of the target audience. Another advantage of producing real content is passing a search engineer's hand edit. To sum it up, everyone wins when you promote good content. Content isn't enough if you have very little traffic. The PROMOTION of good content is where it's at, ladies and gentlemen with newer sites.

Ok, Back to Passion

I've been working on this project for almost a week and after a few minutes of working, my mind goes blank and wanders off. I love the site and I love the future promotional ideas in store because I TRULY BELIEVE that they are genuinely useful and will give a tremendous benefit to the site's visitors. But this current topic is something I just don't give a damn about. Promotion will be fun but writing the actual content, especially if it's about something you care less for can be EXCRUCIATING.

My case is a bit special because I didn't think of this promotional idea and it was almost forced to me.

Tips You Can Use That Worked Well for Me:

  1. You need to have an AUTHENTIC interest and be a genuine believer in what you are promoting. Ok, hypothetically you own a website about traveling to Spain and you are about to promote "The Top 10 Spanish Professors in the U.S." Be honest with yourself. Are you personally interested or care about who the best Spanish professors are? Also, think about the visitors. Will they care or apply the material in real life? In contrast, Aaron and I wrote the Bloggers Guide to SEO. Are we genuinely interested in blogging and SEO? He works 7 days a week and well, it's 3 am in Calfornia and guess what I'm doing? Yes I like blogging but I'll do anything to avoid working on that project that was assigned to me :)
  2. It is important that you manage and go over every word of the content.
  3. When promoting ideas, quality succeeds quantity. You get more success promoting 2-3 well written, high-touch material than 10 mediocre ones.  

What do you guys think? Feel free to add your thoughts and ideas.

Data Visualization & Discovery

I have heard of, Pandora, and a few other similar sites, but I really think Musicovery is a cool online music tool.

Once information is online it is hard to make it disappear. Recently a US judge closed down Wiki Leaks. But that did not work out too well.

Scribd's iPaper aims to make it the YouTube of documents. Syndicating content is really easy now, but for most webmasters, in the short term, the value of inbound links is far greater than the value of spreading documents onto other sites.

IBM's Many Eyes is a cool data visualization tool.

Do You Have Remarkable Featured Content?

Click costs keep rising as more advertisers enter search marketing and streamline their sales process. At the same time the value of traditional ads (not tied to search) keep dropping as more and more web users are becoming aware of advertising. One of the easiest ways to increase user satisfaction, visitor value, and make more money from your site is by featuring your best content.

Featured News

Whenever a big news story in the search space happens Danny Sullivan covers it in depth. When Microsoft offered to buy Yahoo! Danny responded by covering the news, the conference call, and even doing a follow up interview with Microsoft. With Danny owning the search news field him publishing the latest news regularly (and in depth when important events happen) that is featured content.

It is hard to become well known in a market that is already saturated with people like Danny. How do you compete in a marketplace where guys like Danny have more knowledge, experience, social connections, and mindshare? You probably can't enter the market late and just decide that you want to own the search news topic. Instead you must compete by targeting one idea at a time, and do it more comprehensively and better than anyone else in the field by creating featured content. Evoke emotional responses that associate you and your company with ideas.

Featured Content

Most successful publishing businesses offer content of various levels of depth and quality. If you are new to your field and every page on your site is just like the next, and you are cranking out many pages a day, you probably are not creating featured content.

It is hard to take marketshare or mindshare from other people in your market unless you have something worth talking about, and something people associate you with. You need to own an idea. Everyone who is well known is remembered for something.

  • Seth Godin highlights his wide array of top selling marketing books in his sidebar.
  • Hugh MacLeod frequently posts cartoons to his blog, offers his How to Be Creative Series, and gave us the Hughtrain Manifesto.
  • This site offers SEO for Firefox, The Blogger's Guide to SEO, the SEO Book Keyword Tool, 101 Link Building Tips, a glossary, many other tools, and a comparison of search engine relevancy algorithms.

Selling ads to Yourself

In a rush to monetize many businesses plaster ads all over their site, only to get marginal returns, and have many people assume they are a fly by night operation not in it for the long run. If your site is new, one of the biggest things you can do to gain momentum is to avoid aggressive ad placements on your site and find ways to advertise yourself and your best content until you build market momentum and a great business model.

I tested placing an affiliate ad on my blog's sidebar recently, and made about 1 conversion a day for the featured offer. That might sound like a quick and easy passive revenue stream, but I get a lot of traffic to this site. What would happen if I featured some of my own best content in the same position?

I recently put that question to the test by pushing my keyword tool on the sidebar of my site. Many more people are using the keyword tool, and my affiliate link to Wordtracker on the keyword tool page is converting about twice as often, offsetting any loss I had from removing the other sidebar ad.

Rather than running a broadly matching ad I am advertising some of my own featured content and introducing many more people to my keyword tool. That usage will lead to greater user trust, more links, higher rankings, and more affiliate commissions. If I had to try to buy the links I am getting naturally how much would that cost? If I had to buy traffic to my keyword tool how much would that cost? Much more than it is costing me to advertise my own featured content.

Make sure you highlight featured content in your sidebar to drive link equity and mindshare toward it. Your featured content is what builds trust and keeps people coming back.

Blog Homepage vs Static Home Page

For years I featured my blog on my site's homepage. But that design probably scared off thousands of visitors new to the field of SEO who thought I was writing over their heads. Late last year I changed my homepage to a page which featured my best content and guided users through my site. Before I made that change, if I stopped blogging I saw sales drop. And when I started blogging sales would pick back up.

When I arrived in the Philippines for my wedding I went a week without blogging and did not notice a drop off in sales. Your brand lovers are willing to navigate to wherever your frequently updated content is. Your homepage should be optimized to capture the hearts and minds of people new to your field.

Neurological Exploitation & Selfish Ignorance

I just finished reading Nicholas Carr's The Big Switch, which is required reading for every online publisher and marketer. Here is an interview of him by Greg Jarboe about the book

In the chapter The Great Unbundling Nick talked about the demise of newspapers, news organizations, and many traditional news containers. Some of those containers offered a packaging which allowed the creation of free premium content subsidized by profitable backfill content.

The same chapter also talks about what we use to replace these intermediaries - our clickstreams, RSS subscriptions, search, and personalization algorithms. Some offline studies in communications have proved that we are more likely to listen to information that reinforces our worldviews. In addition research has shown that we become more confident, biased, and extreme when we find others who reinforce our worldviews.

Consider the following about the future of online information quality

  • overtly biased information is more remarkable: and is thus likely to gain more comments, more links, more subscribers, and is easier to remember
  • shock testing: much like overtly biased information being remarkable, headlines can easily be tested for performance with little to no cost. I have created headlines that ranked #1 on social news sites when those headlines were only marginally related to the article I was promoting.
  • quality and bias are the same to algorithms: any sign of quality that search engines often ties directly into bias. Just because something has many links does not mean it is "of quality." Ranking a bunch of left wing nutball stuff and right wing nutball stuff is a way to claim you have result diversity, but it does not create or nurture business models for creating more rational and balanced information.
  • marketers track performance: Publishing largely consists of topic selection and publication format. But with so many ways to track performance, publishers are becoming marketers and affiliates who can track the performance of content based on links, pageviews, and earnings. And they can use all that feedback to further arbitrage profit centers while giving less coverage to important topics with limited commercial viability.
  • half truth: If a lie or half-truth is more profitable than the truth someone will sell that story. One of my affiliates went so far as declaring that I am a scammer to try to sell my ebook. What more might that person do to arbitrage my brand if they did not like me? How many affiliates typically emphasize the downsides of a product (unless they are using X is a scam as their sales strategy)?
  • your truth is confirmed: with millions of people publishing information online you will find someone who confirms your facts, even if they are not true. Any person who cites a falsehood makes it easier for others to discover (and believe in) the same lie.
  • everything can be discredited: just about anyone or anything which has risen to social significance has someone talking badly about it. We all make mistakes and the web has a memory longer than our lifespans.
  • similar language usage: people who have similar biases will tend to write information and seek out information using similar words
  • the fight for timing: with so many people competing for attention being first is often more important than being correct. Just yesterday it was claimed that a record label quit and uploaded their catalog to Pirate Bay, but that news was fabricated. Even if you are wrong those links and the page views do not disappear.
  • sound bytes: with so many people creating information more information is being consumed in smaller chunks lacking in context. If it long who has time to consume it?
  • the blend: the borders between content and advertising are blurring as ads get more interactive and we learn to ignore ads that look like traditional advertisements. Organizations like the US military created video games as recruiting tools aimed at 14 year old children.
  • personalization: through the channels we subscribe to, words we search for, and sites we visit search engines make it harder to get outside of our comfort zone by showing us what we already know and believe.
  • exploitation algorithms: Large online media companies know a lot about us, and where they lack information they can mathematically model us based on our interests and habits. Scientists are studying marketing on a neurological level. Google has a patent for targeting ads directly to our psychological flaws based on things like risk tolerance during game play and offers a nearly unmarked text link as an ad unit.

Couple the above with sharply increasing wealth disparity in the US and it makes the web look like a pretty bleak tool for fostering democracy and better understanding of ourselves and each other. How interactive should ads aimed at children get? Should relevancy algorithms give us what we like even if it is false? Is it ok if ads lie? Will marketing advances make us better, or will more people be given pharmaceutical drugs to cure them of their personality?

Might there be a business model in reminding people to slow down and look at things from another angle? When things really bother and frustrate me I try to consume information from someone from an alternate perspective to give myself greater balance. But many people are stuck in debt and do not have enough time to read a 200 to 500 page book unless it offers immediate profit potential.