Blog Transparency, Ethics, & Advertising

Making Money from Blogging:
While I was at SXSW some of the speakers asked "Who here has a blog?"
Most everyone in the audience raised their hands.

The next question was "Who here makes a living blogging?"
I think I was one of about 2-3 people who raised their hands. Affiliate Links in the Archives:
Until you can create a product or business model which is self sustaining there is nothing wrong with building multiple passive income streams to help get you by.

Some of my past posts have affiliate links in them. My free PPC guide has affiliate links in it. For a while even my original ebook had some affiliate links (those were later removed because they were unnecissary and some consumers did not like them).

Ads vs Reviews:
Within free content what is the difference between having affiliate links to useful stuff and allowing people to advertise products? Some of the most powerful sites on the web allow people to market complete bunk (libel laws prevent specific examples).

At this point my financial solvency no longer depends on affiliate links, but to new bloggers or website publishers I ask why not make a living doing what you like and promote good stuff along the way?

If you are learning how to build a business model from scratch some of the people reading your site might be interested in some of the tools or resources that you found useful.

If slightly additional profit allows you to work full time on things you can enjoy - and thus deliver a better end product - why not? If you are focused on helping your consumer do well then there is good value in product and service reviews - so long as they are honest.

Other People Imposing Ethical Guidelines = Bogus:
Instead of having sponsored posts or product reviews is it any more ethical to make a living running clearly marked ads that sell rubbish? If so, why?

There is nothing wrong with mentioning things that you think are useful, even if you make a profit by mentioning them. If you give crap positive reviews then eventually that will come back to hurt you. If you introduce obscene amounts of noise into your chanel then readers will leave.

More people should be able to make a living by talking about whatever interests them. Even the loudest advocates of transparency still do not fully get the topic.

Some people enjoy first to market advantage, or success in prior markets which carries over nicely to their situation. They can afford arbitrary luxuries or arbitrary bogus ethical guidance.

People new to the market may not be able to, and thus should not allow others to control their thought patterns or business models.

Success can breed blinders, and some people may also give bad advice so others do not create businesses or business models which may eventually trump theirs.

Intent is perhaps more transparent than some would like.

Various Resources

Urchin:
Is apparently good stuff.

AutoLink:
48 minute IT Conversation w cory Doctorow, Robert Scoble & Marty Schwimmer

VC:
Venture Capital When You Need It When You Don't
ResearchBuzz posted that GigaBlast was looking for some funding. the VC page looks like it is no longer up though.

Books:
list of MBA resources.
Design thinking books
(both found on Seth's Blog)

FireFox Extensions:
the ones that DaveN uses

Getting Exposure:
how to get media coverage: create your own channels.

Another Blog about Google:
from News.com (found on Blogoscoped)

Flickr:
Jeremy Zawodny says Yahoo! bought them. Looks like Jeremy is getting into marketing too?

This is SEO:
Greg Boser, known for talking straight about SEO, gets a mention in Wired.
Xan states that he views the article as short sighted. I was going to post on his blog, but I did not feel like signing into my .net passport to do so.

LEGOs Rock:
and now, so does Batman.

TV B Gone:
brilliant

Website Dating:
My Density shows first and second degree relationships between websites.

The interface could be a bit cooler and smoother (perhaps if they used a bit of AJAX and ensured the text was easier to read on scroll overs if they are showing a ton of data in a small area), but it looks like a cool idea. more info about My Density and even more info here.

A9 OpenSearch:
I saw this mentioned a while ago, but I think I forgot to link to it. Essentially it allows search results to be reformatted & reappear elsewhere. Robin Good has more about why he feels it is important.

Amazon Ads:
Amazon textual ads hack. cool.

Google News Getting Sued, MSN Shopping Beta, Google AdSense Conference

This Just In:
Google News being sued by Agence France Presse for displaying subscriber only images

MSN Shopping:
Beta

Google AdSense:
Publisher Conference, reviewed. They highlighted a few sites and I think I know some of the people who may do some of the ads for some of them.

When my friend initially set up his personals page on AOL a long time ago (before he knew what a landing page was) he got so many leads that he was sending girls to his friends. Unfortunatly, I was not a friend of his at the time :(

Alex Steffen & Bruce Sterling Keynote Conversation: SXSW 2005

Alex Steffen & Bruce Sterling held the final keynote speech at SXSW. Most of their speech was about ecology and creating a sustainable world.

I was about to write this review and noticed there is a good one on WorldChanging already.

The core of the speech is that we are depleting resources at a faster rate than the world can provide them. Things will need to change. Options going forward:

  • fold dumps into the production cycle

  • create long term stuff
  • label everything

They stated that the biggest problems in the world are closely releated to infistructure, not necissarily social, political, or religious ideolology.

Fabricators, computers, and other small fast production technologies will shorten pruduct creation time and thus enhance the efficiency of micropublishing or small scale creation of various items. Actual will become the new virtual.

To show how fast things change Bruce Sterling asked us to imagine describing our jobs to a time traveler from 30 years ago. Many of us who were in the room at the time worked on web related or industrial design type projects. Our jobs would have been a bit hard to explain.

He said the future will be somewhere between unmanagable or unthinkable. We should strive to make it as best as we can.

After his speech I bought an autographed copy of Bruce Sterling's Tomorrow Now, which looks at how the world may change over the next 50 years. On page 65 he explains the exact reason many people are doing well with SEO:

You're likely to thrive if you learn plenty about subjects where the tests and grading papers have yet to be invented. And if you find yourself learning about something unusual and there's no sense of drudgery to it - on the contrary, you find yourself spending long, smiling hours just painlessly soaking it up - take my advice and look for a job there. If there don't seem to be any jobs there, find a way to make one up.

[added: here are some of the videos from SXSW, including Alex Steffen & Bruce Sterling]

How to Leverage Decentralized Social Networks : SXSW 2005

Panel by Tantek Celik, Jonas Luster, Joyce Park, Ernie Hsiung , & Danah Boyd.

Social relationships only require single directional relationships. Social networks place more emphasis on relationships than personal information. Many of the things which are currently being touted as social networks are community based sites which place greater emphasis on individuals than on relationships.

Danah stated some of the more common problems with social networks are

  • social akwardness

  • articulation problems
  • problems with being public

Joyce also stated another recurring problem is that many networks are created by men and do not take women into account. Another common problem is that some social networks fail to adapt to their audience.

A couple interesting facts:

  • Orkut took off in Brasil for two main reasons

    1. Brasil had two large cities which for a long time did not mix much but recently started mixing more frequently on a larger scale.

    2. Orkut originally had many flags on it. This reminded many people in Brasil of the World Cup. Some people joined because they wanted to beat out the other countries. Now the innovation at Orkut is driven by the Brasil community.

  • For this next statement you will have to pardon any cultural ignorance I display, but I think this is what they were trying to say :) Friendster is popular in some Muslim areas because with certain segments of that cultural background you have to show how and when you met someone, you can't just meet someone and instantly marry them.

They also talked a bit about XFN and recommended a few books. Jonas recommended John Scott's Social Network Analysis. Danah recommended Robin Dunbar's Grooming, Gossip, and the Evolution of Language

Google Code, Pricing a Website & 302 Hijack Removal

Code:
Google Code. kinda funny to see them plugging Mark Pilgrim, who recently authored Butler.
found from SEW

State of the Media:
2005 version

Big Things:
How to Make Big Things Happen with Small Teams PDF - quick slides from SXSW presentation.

How Expensive is a Website?
tips to price a website.

LowJack:
How to deindex a 302 redirect hijack

ABC of SEO:
Brad Talmir reviews The ABC of SEO. I too bought it and have read a chunk of it so far. Thusfar I have similar thoughts as Brad. Good for learning what the jargon means, but I did not like the occassional accusatory overuse of the term black hat SEOers.

For Frequent Flyers, French Courts Hate Google

Words of Wisdom from somewhere in Kentucky:
The more layovers you have the greater your chance of getting screwed.

Grr, I hate Delta!!!

Well at least I got to hang out with Patrick Gavin for a bit tonight. He is always fun to talk with :)

French Court Says Google Ads Smell Bad:
Perhaps those were not the words they used, but Google lost the appeal and they want Google to pay up for trademark related ads.

Yahoo! to Blog, MSN to Sell Ads, World to Get More Exciting

Yahoo! to join blogging fray

MSN adCenter is apparently being tested in France and Singapore first. they will be giving people more demographics and search details than the other engines do. more at
Cnet Asia
Investor's Business Daily

A Few More SXSW Panels

How to Make Money with Online Ads: SXSW 2005

Online panel with Philip Kaplan, Jason Calacanis, Gokul Rajaram, Henry Copeland, & Bill Flitter. To get an overview of the size and compare the various blog advertising networks (and Google AdSense)

# of salesmen:

  • Google has a ton of salesmen.

  • BlogAds has 2 salesmen
  • Pheedo has 3 salesmen
  • AdBrite has 6 salesmen. 3 for inqueries and 3 for calling advertisers. AdBright also recently accepted $4 million dollars in VC funding.

service & fees:

  • Google AdSense places contextually relevant ads on your site. While they have the largest distributed ad network they do not state the profit share percentage. Google introduced Smart Pricing a while back, which works to automatically discount the value of a click if they believe the site has low quality traffic. He stated that the publishers were not given a smaller share of the cost per click in these situations, but that the overall cost per click is lowered.

  • BlogAds allows you to sell flat rate ads. They keep 20% of the ad spend.
  • Pheedo allows you to track your RSS feeds and also places contextually relevant cost per click ads in your RSS feed. They keep 35% of the ad spend.
  • AdBrite allows you to sell flat rate targeted ads. They also allow you to sell bulk untargeted ads if you chose to. They provide a great overview of stats including repurchase rate. They keep 25% of the ad spend.

Business models for blog networks:

Jason stated that he expects many publishers to stack the various advertising networks on their sites to achieve maximum profitablility. He stated that when he started his network he wanted to pay bloggers 50% and that did not work. He later said that he gave the bloggers the first $500 and then 50% and then that did not work. Now he stated that he pays bloggers a flat monthly fee. He stated Gawker media pays $2,500 per month. One of the major benefits of blogging is that the time spent editing normal media is not usually required for bloggers.

He stated that at this point the bloggers still usually need to do something else to get to self sustaining but he thought that the business model would allow bloggers to just blog for his network sometime next year.

Jason also stated that for the people who run multi channel blogs that the more profitable channels are used to pay for the less profitable channels. The channels which lose money can still be ran to offer a wider selection or offering to people who like the network. His goal was to run 700 channels. Recently I believe they launched their 75TH channel.

Criticsms for this panel:

  1. For this panel being about making mone with online ads it was a bit excessively focused on blogs. If it was to be exclusively about blogs it should have said that on the schedule.

  2. I can not fathom how there was a panel about making money with online ads and there was exceptionally little coverage given to the concepts of:
    • selling ads directly

    • partnering up with a merchant or creating your own product
    • affiliate programs
    • selling links
    • sponsored posts
  3. I asked about low quality screen scraper sites participating in AdSense and got a fairly canned response from Google AdSense's product manager. He stated that they use technology and people to review sites and disapprove low quality ones. If they do that then they are doing a lousy job.

    Discounting the click prices a bit and still leaving sites in the program still encourages people to cloud up the web with crap sites. Granted a long time ago I made a few crap sites myself, but Google could at least be honest about not caring about that issue.

  4. On that same question Jason Calcanis stated that click fraud is a non issue. He stated that people were just looking to make up ways to find problems with the business model. He then pointed at Google's AdSense product manager and stated click fraud is not a problem, and he of course agreed.

    Funny that this is the complete opposite answer to what George Reyes, the CFO of Google, gave a while back.

    "I think something has to be done about this really, really quickly, because I think, potentially, it threatens our business model."

  5. As a person who has probably bought and sold around $100,000 worth of various ads in the last year I know that fluctuations in bid prices or click volumes can have significant effects on ROI and ad spend.

    Even if the fraud averages out over time it still:

    • tears apart consumer trust

    • increases account management time. If it takes me more time to manage an account then it costs more money for me to manage it, and that means less money is going to Google.
    • causes more inefficiencies in the market
  6. This panel should also give tips on how to increase site exposure and ad click through rate, since those concepts directly relate to ad revenue.

Bonus Rant:
Jason Calcanis used his speaking gig to rip on Gawker media no less than three times.

  • talking about finding Michael Jackson news on Gawker

  • talking about finding a Lindsay Lohan nipple slip on Gawker
  • saying "I read it on Defamer. It must be true."
  • words and tone matter. apparently I was not the only person who noticed Jason using the microphone for the wrong purposes

    post: Sometimes panelists need to be reminded that they are there to talk about the topic at hand, not to trash people they don't like and then admit they never heard of the topic of the session till they were asked to be in it. Could have been a really interesting session, though.

    comment: i agree. i think two audience questioners put it best when they basically said you ALWAYS have to consider the authenticity, knowledge and motivation of ANY source. After sitting through this session, I question all three for panelist Jason Calacanis.

For a person strong on the blog ethics concpet you would think he could give a speech without doing that crap.


Pages