John Reese on the Competitive Nature of Internet Marketing

I recently read John Reese's PDF announcing the launch of his new Income.com site. In the PDF he talks about how competitive internet marketing will become in the coming 5 years, and stated what are the two main ingredients to large sustainable profit in that type of marketplace. The first is on the concept of optimization:

The key to dominating any market online (now or in the future) is simple. It comes down to who has the highest average visitor value and who has the most traffic.

That is part of the reason I need to increase the price point of my ebook. There are only so many times you can see other marketers repackage and resell your information at a higher price point using aggressive affiliate marketing before you change your price point to more accurately reflect value.

I recently started a site with a friend of mine. Off the start it was frustrating doing all the tweaking needed to learn, but my friend so broadly believes in the concept of optimization that our site will probably out-earn older versions of its format by 400%. 4x the earnings on the same number of pages gives you serious capital for marketing investments and content production.

John's other tip is that when people land on your sites "Are you truly making someone's life better?"

I think that second point is one that is easy to miss if one is too shortsighted. Creating sites that are helpful / of significant value is something I want to work hard on, and has been core to the brand ideas behind my last couple major domain purchases.

Insurance and Real Estate Markets to Get More Competitive

Google plans to announce today that they are partnering with state governments to help make their public records more accessible:

J.L. Needham, who manages Google's public-sector content partnerships, said at least 70 percent of visitors to government Web sites get there by using commercial search engines. But too often, he said, Web searches do not turn up the information people are looking for simply because government computer systems aren't programmed in a way that allows commercial search engines to access their databases.

As more of this content comes online, industries such as real estate and insurance will get uglier as commercial players are forced out of the SERP and into buying AdWords. But on the upside, if you gain editorial access to one of these trusted websites it should be quite easy to rank for virtually anything.

WSJ Article on Search Engine Optimization & Marketing

The Wall Street Journal recently ran an article about SEO and SEM titled In Search of Traffic. I belive you have to be a subscriber to read the whole article, but there is a free podcast interview Kelly Spors did with me about keyword stuff available here, which I think is also available on iTunes.

Good Content Without Marketing Typically Goes Unlinked

If you are not nepotistic in your marketing some of your best content will go unnoticed, especially if you write at a level that is beyond most of your readers. Many of the people who are popular are not popular just because of content quality...there are so many nepotistic partnerships that go unspoke of that it is quite scary. Anyway, here is a brilliant post by Andy Hagans about how to sell a site for a million dollars. He is a friend, and the link may be nepotistic, but I am surprised that it got so little traction for how great it is. I guess more bloggers want to be told their blog is worth a million than want to learn how to get those million dollars in hand. To each their own.

You can tell that he is writing from his experience and learning while he is actively doing what he is talking about. That is typically where the best ideas come from...when you escape ideals and theory and talk about the trends you see right now and what is working for you right now.

Content as Marketing for the Upsell

In many formats price is just used to filter out some of the noise, and an item is priced so low remind people it has some value, but allow it to spread fast. Consider Seth Godin's new book titled The Dip. He is a brilliant marketer, has huge reach, has a blog dedicated to marketing that book, and Barnes and Nobles sells the brand new audiobook version for $5. How do you compete with that?

Does Seth need to use such a low price point? Nope. He just wants his idea to spread as fast as it can.

He creates significant value then gives it away. It gets him more reach, which he can use down the road to monetize any way he wants, from corporate consulting to starting up a network site.

Not that Seth would need to do this to get read, but I have seen other marketing experts buy thousands of their own book and give them away so they can make the best seller list. Exposure leads to more exposure, which leads to both trust and opportunity.

The web has so much free content on it because the links and attention are so important.

There are at least 6 big reasons selling information is hard

  1. there is an abundance of information

  2. many types of information have serious hidden biases or costs that allow a person to create something that looks rather valuable while not being so
  3. search makes it easy to find an answer that is good enough
  4. many packaging formats (ie:newspapers) are becoming irrelevant
  5. blogging makes it easier to consume information free, in convenient bite sized chunks
  6. attention has value which can be leveraged in many ways, allowing you to discount the price of information to keep gaining attention...look at how much people blog every day

If even seasoned marketers near the top of the game are giving away a lot of value you have to give away a lot to gain enough traction to get enough mindshare to make it profitable.

Earnings Per Page

If you have a site where it takes little effort to update it then the number of pages a site has is not a big factor, but if you are buying a website that is sold as an authority the number of pages is a crucial factor to consider.

Less is More:

More is better is not always true. The two most recent interesting looking sites I have seen for sale recently have been non-appealing because they have SO MUCH CONTENT for their traffic stream. A friend of mine has a 20 page website that gets 1,500 uniques a day. In the same vertical a site with 20,000 pages is getting less than double that traffic stream.

Is the 20,000 page site an authority site? If it is, it is one that has a bad content management system, duplicate content issues, and internal architecture problems. I could clean those problems up an increase traffic, but if the first thing you have to do when you buy an asset is to gut a large chunk of it then you might be just as good off starting from scratch.

Why Less is More:

I don't mind buying smaller sites that I can extend out. One friend of mine runs an AdSense site that was about 30 pages a year ago and made $600 a month. As he extended it out to a 1,000 page website (while marketing it to keep building authority along with content) the traffic went up 40 fold and the earnings went from $600 a month to $750 a day.

That 20 page website I mentioned above is being fine tuned to earn more right now. If it was extended to rank for a couple related terms that are not yet heavily targeted it could double its earnings by adding another 10 pages of content to the website.

Track Your Growth:

The last thing you want to do is add so much low value content that you spread your link authority so thin that you best earning pages no longer rank. As you add new pages make sure you consider their effect on your supplemental ratio, and how your internal link structure is flowing link authority toward your key pages.

If you are building your own site make sure you track traffic streams and earnings and base your internal architecture around maximizing those while keeping the site looking legitimate. If you test something and it does not perform suppress its roll in the site navigation while building more authority. Keep testing extending the site in other potentially profitable directions.

Getting Rid of the Garbage:

If you buy a site off someone else you are buying

  • the domain name

  • the brand
  • the site age
  • the link authority
  • the content
  • the traffic and revenue streams
  • any upside potential you see that the market does not see (and thus does not value)

If you buy a site which has limited earnings for its size, when gutting out the bad content you need to first see what is worth keeping. The easiest way to do that is

  • track conversions to see what pages are profitable

  • see what pages have quality backlinks (using Yahoo! Site Explorer, or maybe sign up for Google Sitemaps)
  • look for pages with surprisingly large traffic streams or other indications that they could become self reinforcing authorities that garner recurring links.

Some of the content may also be valuable, but just underperforming because the site has so much more content then authority. In that case, don't gut useful original content, just ensure that you focus more effort on building the site's authority before you bulk up the site with more content pages that won't get indexed or ranked.

Bye for a Few Days

I am going to Coachella today.
So I should not be around for a few days.
I will be around sometime Monday or Tuesday. Or maybe a few days later.
My girlfriend loves golf and they have lots of it in Palm Springs. The trip could get extended.
Hope to finish an underway ebook update shortly after I return.
Lots to think about and sort through with search result re-ranking, editorial algorithmic results, etc.
And hope I do not peel too bad from sunburn.
Nice to see user generated content getting more political.
Have fun. I will. :)
Aaron

Are Google's Search Results Algorithmic or Editorial?

Google has been progressively eating their own search results with...Google.

I hate to use Avril Lavigne as an example, but I am about to go to a sweet concert, so maybe this is ok. Looking at the following searches, notice how Google is promoting Google or sites that are editorially selected and trusted by Google.

Their music service promotes trusted resellers, their news service promotes trusted news sources, and their top ranking YouTube pages (promoted externally and internally and algorithmically favored) will eventually consist largely of trusted content providers.

This self arbitrage and backdoor partnerships as organic relevancy work on core popular search phrases:
Google Eating Google.
and it scales on through to less popular phrases that are hot right now:
Google Arbitraging Google.

If you didn't understand what I was talking about in Google Closing the Window of Opportunity, the above images should do a good job of showing how search is moving away from purely algorithmic to an editorial blend approach, and how Google is making itself a leading vertical search engine in many verticals.

The easiest way for Google to be perceived as relevant is to make it easy for other authorities to want to talk about Google as being innovative and relevant. If Google is willing to send significant traffic to trusted sources how could those sources do anything but trust Google?

Banner Blindness Extends Beyond the Banner

When looking at the difference between a profitable business model and an unprofitable one you really need to look at the math. I recently ran many graphic ads that I bought through Google on a CPM site targeting basis. Here is a look at one campaign: Banner Blindness.
Notice that the 468 by 60 got a much lower click-through rate than the text ad or other image ad. Why? Some of it may have been up to ad positioning, but part of it is also due to 468 by 60 being the default banner ad size. If it looks like an ad people ignore it.

Just like the 468x60 banners are being worn out, many sites are selling overpriced 125x125 ad buttons. These are not selling because they offer great value, they are selling because the trend started at a few popular sites, and it is easy for the publisher to ask for a lot without giving away too much value.

Low value sites that feature targeted ads as the content (with in content text links) will earn more than high value content which has obvious ad units located in obvious ad spots.

And just how people grow sick of advertising they also grow sick and tired of abused methods and formats, such as:

  • pop ups and other intrusive ads

  • red headlines
  • squeeze pages
  • sensational headlines

If you want to make your marketing successful, leverage techniques that are not perceived as being overused and abused to members of your target market. Rather than formatting your ads like ads turn them into content that is formatted like other content people trust and get people talking about it.

Buying Site Targeted AdSense Ads

When you buy site targeted AdSense ads (or other CPM priced ads), there are easy ways publishers can inflate their pageviews and ad inventory. I listed a number of them here, but a few other common techniques are

  • showing ads to bots (or running traffic bots against their site)

  • refreshing pageviews
  • framing external pages
  • adding a forum to a website
  • creating traffic exchanges and siphoning off credits
  • creating ad units that offer no value, but cash in on naive advertisers

Here is an ad unit on a popular category leading hub site. Notice that it is literally below the page footer in the forum section of the site. It is a great site with lots of traffic, but it is hard to profit from that ad unit.

Google AdSense Site Targeted Ads.

If you blindly buy site targeted ads those are the impressions you buy first...the ones that are deemed to have the least value and/or the ones that are hardest to match to a commercial intent.

If you buy site targeted ads, in many cases you will be buying some amount of junk, so if you are buying as a direct marketer it is best to try to buy the most precise and most relevant ad possible. That could involve any of the following

  • contacting the webmaster directly for an ad on a specific section or page (prices can vary widely - I have seen ads of similar value in the same vertical priced from $6 to $1,000)

  • creating a relevant ad and ad group targeted specifically to a site
  • targeting a specific folder or specific page

Google's site targeted tool tends to aim for bulk buyers who do not care if they get a bit of remnant garbage inventory. They do not make it easy to add a specific page to a site targeted ad group unless you click the edit sites and CPMs link from a site targeted group, at which point in time you can list individual URLs or folders you want to target. Remember that if you list a home page or root folder page it will also place your ad on other pages from that site or folder.

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