Your Favorite Eric Schmidt Quotes?

Do you want Google to tell you what you should be doing? Mr. Schmidt thinks so:

"More and more searches are done on your behalf without you needing to type. I actually think most people don't want Google to answer their questions," he elaborates. "They want Google to tell them what they should be doing next. ... serendipity—can be calculated now. We can actually produce it electronically."

Of course the problem with algorithms is they rely on prior experience to guide you. The won't tell you to do something unique & original that can change the world, rather they will lead you down a well worn path.

What are some of the most bland and most well worn paths in the world? Established brands:

The internet is fast becoming a "cesspool" where false information thrives, Google CEO Eric Schmidt said yesterday. Speaking with an audience of magazine executives visiting the Google campus here as part of their annual industry conference, he said their brands were increasingly important signals that content can be trusted.

"Brands are the solution, not the problem," Mr. Schmidt said. "Brands are how you sort out the cesspool."

"Brand affinity is clearly hard wired," he said. "It is so fundamental to human existence that it's not going away. It must have a genetic component."

If Google is so smart then why the lazy reliance on brand? Why not show me something unique & original & world-changing?

Does brand affinity actually have a hard wired genetic component? Or is it that computers are stupid & brands have many obvious signals associated with them: one of which typically being a large ad budget. And why has Google's leading search engineer complained about the problem of "brand recognition" recently?

While Google is collecting your data and selling it off to marketers, they have also thought of other ways to monetize that data and deliver serendipity:

"One day we had a conversation where we figured we could just try and predict the stock market..." Eric Schmidt continues, "and then we decided it was illegal. So we stopped doing that."

Any guess how that product might have added value to the world? On down days (or days when you search for "debt help") would Google deliver more negatively biased ads & play off fears more, while on up days selling more euphoric ads? Might that serendipity put you on the wrong side of almost every trade you make? After all, that is how the big names in that space make money - telling you to take the losing side of a trade with bogus "research."

Eric Schmidt asks who you would rather give access to this data:

“All this information that you have about us: where does it go? Who has access to that?” (Google servers and Google employees, under careful rules, Schmidt said.) “Does that scare everyone in this room?” The questioner asked, to applause. “Would you prefer someone else?” Schmidt shot back – to laughter and even greater applause. “Is there a government that you would prefer to be in charge of this?”

That exchange helped John Gruber give Eric Schmidt the label Creep Executive Officer, while asking: "Maybe the question isn’t who should hold this information, but rather should anyone hold this information."

But Google has a moral conscience. They think quality score (AKA bid rigging) is illegal, except for when they are the ones doing it!

"I think judgement matters. If you have something that you don't want anyone to know, maybe you shouldn't be doing it in the first place," - Eric Schmidt

Which is why the blog of a certain mistress disappeared from the web. And, of course, since this post is on a blog, it doesn't matter:

If you're ever confused as to the value of newspaper editors, look at the blog world. That's all you need to see. - Eric Schmdit

Here is the thing I don't get about Google's rhetorical position on serendipity & moral authority: if they are to be trusted to recommend what you do, then why do they recommend illegal activities like pirating copyright works via warez, keygens, cracks & torrents?

Serendipity ho!

Yahoo! Search Now Powered by Bing

Pretty exciting day in search seeing Bing results live on Yahoo! Search results.

Yahoo! Search Powered by Bing.

There were some questions as to what might transfer and what might stay. It seems that generally algorithmically there was roughly a 1 to 1 transfer.

Same Rankings.

Yahoo! is still showing fewer characters in their page titles than Bing does. Site links (listed below some sites) may also use different anchor text. But the core results are the same. The big exceptions to the concept of the 1:1 representation would be vertical search results, left rail navigation customizations & the inline search suggestions Bing does in their search results for popular search queries.

The vertical search results & left rail navigation being home grown is no surprise, as many of the features aim to keep you on the parent portal, and that is Yahoo!'s bread and butter. Here is an example of the inline suggestions Bing does (in this example, for "loans")

Inline Suggest.

Instead of inline suggestions like that, you might see the following kinds of navigational cues from Yahoo!

Also Try.

There has been some speculation as to if any Yahoo! penalties will get rolled into Bing (or Yahoo!'s version of Bing) & so far it seems like that is generally a no. Of course, that could change over time. There also has been speculation of Yahoo! Site Explorer going away, but it seems it will remain through early 2012.

The Yahoo! Site Explorer team is planning tighter integration between Site Explorer and Bing Webmaster Center to make the transition as smooth as possible for webmasters. At this stage in the transition, it is important for webmasters to continue using Yahoo! Site Explorer to inform us about your website and its structure so you keep getting high quality traffic from searches originating on Yahoo! and our partner sites – even from markets outside the US and Canada that haven’t yet transitioned to Microsoft systems. To keep things simple, we will share site information you provide on Site Explorer with Microsoft during this transition period.

When Microsoft fully powers the Yahoo! Search back-end globally, expected in 2012, it will be important for webmasters to use Bing Webmaster Center as well. The Bing tool will manage site, webpage and feed submissions. Yahoo! Site Explorer will shift to focus on new features for webmasters that provide richer analysis of the organic search traffic you get from the Yahoo! network and our partner sites.

Unfortunately some of Yahoo!'s advanced link query operators seem to no longer work (say you wanted to find links to a domain from .gov pages). But you can get such link data (or at least a piece of it) from Majestic SEO or SEOmoz's Linkscape (also in OSE's export feature & eventually their online interface).

Some smaller search companies, like Exalead, still offer advanced filters while performing link searches. The ability to search a full web index allows you to do cool stuff you can't do with just a link graph. I haven't looked at it yet, but I have heard good things & owe the folks at InfluenceFinder a review soon. When Blekko launches they will have a boatload of free SEO features to share as well. Members of our community have been giving it rave reviews for the past month or so.

Why 'Spam' is Everywhere & Why That Means Nothing!

Sigh, not this again. ;)

Recently Rand highlighted his surprise at how prevalent search spam is. But the big issue with search today is not the existence of spam, but how it is dealt with. For a long period of time Google spent much of their resources fighting spam manually. That worked when spammers were sorta poor and one hit wonders fighting on the edge of the web & few people knew how search worked. But as technology advances & "spammers" keep building a bigger stock of capital eventually Google loses the manual game.

Search engines concede the importance of SEO. It is now officially mainstream.

  • Both Google and Microsoft offer SEO guides.
  • Microsoft and Yahoo! have in-house SEO teams.
  • Yahoo! purchased a content mill.
  • Microsoft's update email about powering Yahoo! search results later this week contained "After this organic transition is complete, Bing will power 5.2 billion monthly searches, which is 31.6 percent of the search market share in the United States and 8.6 percent share in Canada. You can take advantage of this traffic by using search engine optimization (SEO) to complement your search campaigns and boost the visibility of your business."

Sure you will still see some media reports about the "dark arts" of SEO, but that is mainly because they prefer publishing ignorant pablum to drive more page views, as self-survival is their first objective. Some of the same media companies alerting us of the horrors of SEOs have in-house SEO teams that call me for SEO consultations.

A Google engineer highlighted this piece by submitting it to Hacker News, using this as the title "sufficiently advanced spam is indistinguishable from content." We tend to over-estimate end users. If most people don't realize something is spam then to them it isn't. If the search engineers have a hard time telling if a blog is ESL or auto-generated, how is a typical web user going to distinguish the difference?

Some SEO professionals have huge networks of websites and are 8 or 9 figures flush in capital. They can afford to simply buy marketshare in any market they want to enter. Burn one of their sites and they get better at covering their tracks as they buy 5 more. At the same time the media companies are partnering with content mills & the leading content mill filed for an IPO where they are hoping for a $1.5 billion valuation.

Why does one form of garbage deserve to rank when another doesn't? If link buying is bad, then why did Google invest in Viglink? If link buying is so bad then is lying for links any better? If so, how?

How exactly can Google stop the move toward spam in a capitalistic market where domains can be registered with privacy and marketers can always rent an expert to speak for the brand? Is a celebrity endorsement which yields publicity spam? How can Google speak out against spam when they beta test search results that are 100% Google ads?

Wherever possible, Google is trying to replace part of the "organic" search results with another set of Google vertical results. If Google can roughly match relevancy while gaining further control over the traffic they will. Just look at how hard it is to get to the publisher site if you use Google image search. And Google is rumored to be buying Like.com, which will make image search far more profitable for Google.

As Google continues to try to suck additional yield out of the search results, I believe they are moving away from demoting spam (due to the point of diminishing returns & risks associated with demoting what they themselves do creating anti-trust issues). Instead of looking for what to demote, they are now shifting toward trying to find more data/signals to promote quality from.

The issue with manual intervention (rather than algorithmic advancements) is that it warps the web to promote large beaurocratic enterprises that are highly inefficient. That is ok in the short run, but in the long run it leaves search as a watered down experience. One lacking in flavor and variety. One which is boring.

Google is going to get x% of online ad revenues and y% of GDP. In the long run, them promoting inefficient organizations doesn't make the web (or search) any more stable. They need to push toward the creation of more efficient and more profitable media enterprises. Purchases of ITA Software and Metawebs allow Google to attack some of the broader queries and gain more influence over the second click in the traffic stream. Business models which are efficient grow, whereas inefficient ones are driven into bankruptcy.

As Paul Graham has highlighted, we might be moving away from a society dominated by large organizations to ones where more individuals are self-employed (or who work for smaller organizations). We hire about a dozen people, but they are sorta bucketed into separate clusters. Some work on SEO Book, some blog, some help create featured content, some help with marketing, etc. etc. etc. The net result of our efficient little enterprise is pushing terabytes of web traffic each month. Would you describe the site you are currently reading as being "spam" simply because it is efficient & profitable? Would a site that took VC capital and was less efficient be any more proper? How much less interesting is the average big media article on the field of SEO?

If a search engine gets too aggressive with penalizing "spam" then tanking competitors becomes a quite profitable business model. If they are to focus on what to demote search engineers need to figure out who is doing what AND who did it. Thus the role of SEO today is not to remain "spam free" (whatever that is) but to create enough signals of quality that you earn the benefit of the doubt. This protects you from the whims of search engineers, algorithmic updates, and attempts at competitive sabotage.

You can future-proof your SEO strategy to the point where your site never loses traffic because it never ranked! Or you can get in the game and keep building in terms of quantity and quality. If lower quality stuff is all that is typically profitable in a particular market then it isn't hard to stand out by starting out with a small high-quality website. That attempt to stand out might not be profitable, but it might give you a platform to test from. After all, Demand Media purchased eHow.com to throw up their "quality content" on.

Online the concept of meritocracy is largely a farce. Which is precisely why large search companies are willing to buy content mills. If search engines want to promote meritocracy they should focus more on rewarding individual efforts, though that might have a lower yield, and some people prefer to stay anonymous given competitive threats from outing AND some of the creepy ways online ad networks harvest their data to target them.

What does the lack of meritocracy mean for marketers? If you are a marketer you need to be aggressive at marketing your wares or someone with inferior product will out-market you and steal marketshare from you.

Will someone consider your site spam?

Sure.

But they will have worse rankings than you do!

Jon Glick Interview

Jon Glick.
Jon Glick is one of the leading experts on search, having literally both wrote the code at leading search engines and later becoming an SEO professional. I remember speaking with him in 2004 at the Ghost Bar in Las Vegas and it was perhaps the most fascinating conversation about search I have ever been part of. I have wanted to interview him for years & just recently was able to. :)

In some past interviews (like this one) you have highlighted how Google's key strength is perhaps brand rather than relevancy. After seeing Yahoo! bow out of the search game do you still hold that same opinion? What do you think of the Bing brand?

Brand is still Google’s strongest competitive asset in search. It means that to get someone to switch you have to be significantly better than they are, which is a tall order. Bing is the first search offering from MSFT that is in the same league with Google, so it’s more about branding and positioning than objective quality at this point. If Bing was a standalone brand they wouldn’t have a chance, but it has the advantage of default positioning in IE, so for now it just has to be close enough that people won’t swap it out. Over time Bing may evolve some interesting differentiation from Google, but that’s not really the case right now (at least it seems to be pressuring Google to experiment/innovate a bit more). It’s been quite a while since using a MSFT product was “cool” and Bing has that drag on its brand.

Some of the new upstarts entering the search game believe that perhaps the thinning of the herd is creating an entry opportunity? Have you checked out Blekko yet? Any other new general search projects interest you?

Google rose to prominence during the dot-com bust when the existing players were quite disinterested in search, since at the time (pre-PPC) it was money loser. Search is so ridiculously lucrative right now that any promising technology that starts to get traction or buzz is likely to be quickly acquired by one of the major players as a blocking measure. Google’s rumored attempt to acquire Cuil for $80MM pre-launch is an example. There is an opportunity, but it’s more about getting bought out for a sweet price than taking down the SEs.

There is also so much manual tuning in search these days that even a great system will take a lot of effort to return great results. “Plumber OR Pipefitter” is a Boolean query, “Portland OR Plumber” is not, and someone’s got to build code to recognize that. This is where the existing players have a huge legacy advantage.

Looking at new search technologies I’m very cautious about those that ask users to do more work in return for better results. Search is a low-intensity activity that people don’t really want to learn or spend time on. This is where an approach like WA (that Bing is also aiming towards) looks interesting. We’d all like search to be like the computer from Star Trek that gives you back exactly the answer/data you ask for. The complication with this, beyond the technical issues, is what benefit it has for the webmasters (i.e. why should I let you crawl/index my site). Current SEs take your data for their use, but provide traffic in return, which an answering system would not.

You are one of the few guys who literally wrote the relevancy algorithms & then later worked in the SEO space. Do you consider the roles to be primarily complimentary or adversarial?

So is SEO good or bad for SEs? On the whole I think it’s a benefit for them. From an algo perspective it’s a lot easier to determine the intent of a well SEO’d page. The SEs give webmasters a lot of tools and encourage them to use them because it makes search better. 301 your pages so we know where the content went, let us know what parameters don’t impact page content so we don’t get caught in robot traps, tell us what language your page is in using the metatags so we don’t have to guess, etc. If one of these tools ends up being a net negative, SEs can always change how they treat it (NoFollow), or just start ignoring it all together (Keywords MetaTag). This is not to say that a lot of work doesn’t have to be put into removing spam and factoring out overly aggressive optimization, but it’s a lot less than what they’d need to do if no one SEO’d.

Given your experience on both sides of the table, do you feel that ranking great in other search engines is like stealing candy from a baby, or is it still hard? What aspects of the SEO process do you find most challenging?

For SEO-ing established businesses it’s not a slam dunk, but it is still possible to generate very strong returns. At Become.com we have dozens of people working on SEO in a very organized manner and paybacks on investing effort are better than almost any other aspect of our business. The challenging part is the innate volatility of SEO and the fact that ultimately the SEs control our destiny. You can put together a great growth plan, and then watch an algo update like MayDay shred it.

For the spammers, it’s like stealing candy from a sleeping Doberman. It’s easy until the Doberman wakes up.

Does your experience allow you to just look at a search result and almost instantly know why something is ranked? If so, what are the key things SEOs should study / work on to help gain that level of understanding?

I wish. There is always some pattern recognition that comes from experience (i.e. this is a collage site), but there are so many nuances in the code and off-page stuff that it’s not always instant, you just get better at knowing what to look for. The real learning comes from looking at pages that are ranking well for no obvious reason and seeing what they are doing. It’s no secret why apple is #1 for “ipod nano,” but what is that site I haven’t heard of doing right to get the #5 position? Also if we see a competitor suddenly see a step-function traffic lift we look to see what they changed/added that the SEs seem to be liking.

Back in 2006 you highlighted the rise of some of the MFA collage websites. In 2010 content mills are featured in the press almost every week. Are you surprised how far it has went & how long it has lasted?

I think Google actually likes folks like Demand Media. What they are doing is seeing where GG’s users are looking for something and not finding it, then plugging that hole. It may not be the Pulitzer Prize-winning content, but it allows users to find something and thus makes Google more useful and universal. When better content comes along those pages will slip down, but they serve a purpose in Google’s ecosystem.

Collage websites (stitch sites in Yahoo! parlance) are another story entirely. They add virtually no value and are pretty much spam IMO. The difficulty is in detecting and eradicating them as fast as they can be robo-created.

You mentioned looking at the aboutness of a site for Become.com when judging links. Do you think broad general search engines care about link relevancy?

Personally, I have not seen it have much of an impact, which is a shame. I think the main reason is that it is quite difficult for general SEs to judge which site relationships are meaningful, and which are not. For example, a golf course might get links from a real estate site; golf and real estate might be classified as very different verticals, but the links are quite relevant because the real estate agent is pointing out one of the benefits of the community. As a result link relevancy has become more about avoiding bad neighborhoods (3Ps, link farms, etc.) than finding good ones.

How important do you think temporal analysis is in judging the quality and authenticity of a link profile?

It’s certainly a red flag if a site gains too many links too quickly. The same is true if the profile of the links looks unnatural. If all your new links are coming from PR3-PR4 blog sites, something’s off. If bloggers are suddenly that interested in you wouldn’t a lot of PR0 comments exist, FB mentions, tweets, and a few higher PR press mentions? At Yahoo! sites that got a sudden upsurge in inlinks were classed as “spike” sites. Legit spike sites (ex. the website of some unknown who wins an Olympic medal) have typical hallmarks like temporally-linked mentions in media sites that you can’t buy access to (AP, NYT, Time, etc.). The spikes that are blackhatted look totally different.

In an interview a couple years ago Priyank Garg mentioned Yahoo! looked at the link's location on a page. Do you feel other search engines take this into account?

All of the major SEs have been doing boilerplate stripping for a while. They recognize footers, rail nav., etc. and look at those links differently. Also, SEs will only follow a limited number of links per page. They typically collect all the links, remove the checksum dups (note: if your links vary by even one parameter they will not be deduped at this phase), and follow the first N links from the code. None of the SEs will say exactly what N is, but it’s probably somewhere between 75 and 300 links (Google recommends you have <100). Put your important links high up in the code and save the header/footer stuff for further down.

What are some of the biggest advantages vertical search engines have over general search engines? As Google adds verticals, will they be able to build meaningful services that people prefer to use over leading vertical plays?

The big advantage of being a vertical search engine is the ability to limit the scope of the problem we’re trying to tackle. You can use a more focused taxonomy to provide a better experience, and present data in a way that is much more relevant than the 10 blue links. Sidestep is going to help me find the plane flight I want a lot easier than a Google search. The challenge is that the experience that you offer has to be dramatically better than Google. Google is easy, people know how to use it and it works for almost everything. Being 5% better at one thing won’t get anyone to switch behavior.

As Google adds verticals, it’s ironic that they are in a position in the browser similar to how I think of Microsoft historically on the desktop (link and leverage): they don’t need to win by being the best, they win by being the default. Google Product Search doesn’t have to provide a better user experience than say Shopping.com; it will get used because it gets placed prominently on the Google SERP.

At the upcoming SES you are speaking about meaningful SEO metrics. What are some of the least valuable metrics people still track heavily?

The one that jumps to mind is pages indexed. Depending on which GG servers you are hitting, that number is going to fluctuate, and I see people stress over those fluctuations when there is often no actual change. Also, getting indexed is virtually worthless; it’s getting ranked that’s valuable. It’s easy to get your “iPod” page indexed, getting a top10 ranking is another story. What’s the point of having 300,000 pages indexed if all your traffic is coming from 30 that have decent rankings? If you have pages that are indexed, but not ranking; either do some SEO for those pages (internal links, extra content, etc.) or NoIndex them and take them out of your sitemaps so other pages on your site get a chance.

Another is pageload time. Google has mentioned this as a ranking factor, but we really have not seen an impact. We focus on reducing latency, and loading search relevant content first (vs. headers or banner media), but that’s because it reduces abandonment rate not that it helps SEO.

What are some of the most valuable metrics which are not generally appreciated enough in the market?

The big one is revenue. Everything else is a means to this end; never lose sight of that.

The other is crawl rate (esp. from Google). This is a great leading indicator.

----

Thanks Jon! To hear more of Jon's insights on search check out his panel at San Francisco's SES conference next week.

Financial Steroids

One of Wordnet's definitions for slave is "someone entirely dominated by some influence or person; 'a slave to fashion'; 'a slave to cocaine'; 'his mother was his abject slave.'"

Amongst that definition of the word, it is no stretch to say many Americans (and indeed the United States) are debt slaves. We encourage it in virtually every aspect of our lives: consumerism, taking on debt to buy a new car or house, education which requires a decade or more of solid employment to pay for, even when it sometimes prohibits employment:

Jordan Hueseman, 25, accrued roughly $100,000 in student loans at the University of Denver earning a bachelor's degree in international business and a master's in business administration. On the job hunt, he found his graduate degree sometimes hindered more than it helped.

“At one point, I applied to Whole Foods, hoping they might see some potential for me to move to some type of management position,” Hueseman said. “The e-mail I received from them said I was far too overqualified for any of their hourly positions and as such would not be considered for a position.”

Hueseman said that after one job application, he was told he should leave his degrees off his resume.

As bad as that is, student loan debt typically can't be discharged via bankruptcy. Introducing the for-profit element to the federally guaranteed loans also gives you major price distortions:

A student interested in a massage therapy certificate costing $14,000 at a for-profit college was told that the program was a good value. However the same certificate from a local community college cost $520.

Imagine buying an iPod for $6,703.84. That is how much one would cost at the above ratio. Even the die hard Apple fans wouldn't be buyers at that price. And yet the availability of credit (which only has to be paid back later) tied with the words of a recruiter/salesman closes such a deal every single day of the year.

You have to love marketing!

Many try their hardest to pay their debts. Some can't. The debts are then bought up for pennies on the Dollar & then they harassed to pay them. Some who can't make the payments end up being put in jail:

It's not a crime to owe money, and debtors' prisons were abolished in the United States in the 19th century. But people are routinely being thrown in jail for failing to pay debts.

The debts -- often five or six years old -- are purchased from companies like cellphone providers and credit card issuers, and cost a few cents on the dollar. Using automated dialing equipment and teams of lawyers, the debt-buyer firms try to collect the debt, plus interest and fees. A firm aims to collect at least twice what it paid for the debt to cover costs. Anything beyond that is profit.

Bail is often being set at exactly how much debt you have.

The banking class put teeth into the consumer bankruptcy laws under an Orwellian bill called the "Bankruptcy Abuse Prevention and Consumer Protection Act of 2005." Only a few months after it was passed an article titled Newly Bankrupt Raking In Piles of Credit Offers was published in the New York Times.

Of course, a few years later, when it was turn for the bankrupt banks to go out of business due to widespread intentional mortgage fraud and accounting control fraud, they pushed a bill through congress offering them a bailout - threatening marshall law and tanks in the street if they didn't get it.

The bailouts and legalizing accounting fraud (allowing banks to claim bogusly inflated asset values) were done with the alleged purpose of helping the banks restore their balance sheets. However those banks have started paying record bonuses again & a more cynical look at the sequence describes it as:

In effect, it's a Third World/colonial scam on a gigantic scale: plunder the public treasury, then buy the debt which was borrowed and transferred to your pockets. You are buying the country with money you borrowed from its taxpayers. No despot could do better.

The new president claimed to be in favor of transparency, and as part of the bill promoting it gave us this:

The law, signed last week by President Obama, exempts the SEC from disclosing records or information derived from "surveillance, risk assessments, or other regulatory and oversight activities." Given that the SEC is a regulatory body, the provision covers almost every action by the agency, lawyers say. Congress and federal agencies can request information, but the public cannot.

Here is the thing about business and personal investment. So often what we think we need is to invest money when what we really need to invest is time and effort. If you work twice as long as most people do, learn furiously, are willing to put yourself out there, and you know your market then you can overcome a lack of capital to build momentum.

Are there short cuts? Absolutely. But the most obvious ones which seem like they have the least upfront risk are typically not the best ones. There was a thread recently in our forums about forging a certain type of partnership, and John Andrews shared a great take on how that can work out. I shared a similar story as well. A $50,000+ life lesson without having to experience the pain.

About a month ago there was a thread where someone thought they *had* to have something which cost $100,000. Members of the forums dug up a great alternative which was only $1,700. Now he is in an incredible position without all that debt!

It is easy to think that debt is the key to growth, but "When the Student is Ready, the Teacher will appear" is a better way to think about growth. If you have to take on a lot of debt to do something then it might not be a great idea.

Debt works to limit you. It consumes your thought cycles, adds uncertainty, and pull attention away from what you do best. It raises your stress and is a major cause of divorce. Rand's story of building up a half million of debt is a good story of why it should be avoided. And he didn't start getting very successful until the debts were being paid off so he could focus on growing his business.

Given open source content management services like Wordpress, free themes, 99Designs, cheap web hosting, tons of market research data from keyword tools, etc. a person can get started for only a few hundred Dollars. Presuming you start by attacking your market from an informational angle, there is no need to take on huge leverage to get a project started.

Money can be a great lever. And if you have a lot of it certainly it makes sense to use it to your advantage. But the compounding interest on debt is also a lever working against you. It is what forces us to have recessions.

Can you succeed with the use of debt? Sure. But debt is a claim on future labor (with interest). The net impact on most people is probably more harmful than it is good. Particularly because if you spend more than you are making today then tomorrow you need to

  • cut your expenses to within your income
  • cut your expenses below your income to have money for interest on the loans
  • cut your expenses further to have capital to pay off the principal of the loan

And you have to do that in an increasingly gamed market where the rug can be pulled out from under you at any time. You don't control international balance of payments issues, but you certainly feel its impact in job security & the unemployment numbers. At any time forces beyond your control can pull the plug, rewrite the terms, or impact your market in ways that put you in a sour situation. If you have no debt and a bit of savings they can only screw you a bit. If you are loaded up on debt there are some risks you can't take. They own you.

"Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it." — Albert Einstein

Am I trying to say there is such a thing as a perfectly secure market position? Not at all. Market makers are often market manipulators. But when I read this quote:

"There was 5 exabytes of information created between the dawn of civilization through 2003," Schmidt said, "but that much information is now created every 2 days, and the pace is increasing...People aren't ready for the technology revolution that's going to happen to them."

the last thing I want to do is load up on debt.

How about you?

Ryan Deiss Perpetual Traffic Formula Review

Marketing generally has 2 core strategies in terms of customers: finding new customers & keeping your current/old customers happy. The best businesses tend to keep the interest of their customers for months and years through consistently improving their products and services to deliver more value. Whereas the other sorts of businesses tend to be hard-close / hype driven & always promoting a new product / software / scheme. It is never a complete system being sold, but some "insider secret" shortcut that unearths millions automatically while you sleep - perpetually. ;)

One of the problems with false scarcity hype launches is that it attracts the type of customers who can't succeed. The people who are receptive to that sort of marketing want to be sold a dream, they are not the type of people who want to put the time and effort in to become successful. They are at stage 2 in this video: "my life sucks" ... so sell me a story that will instantly make everything better without requiring any change from me at all. ;)

Another one of the problems with the hype launch business model is that it requires you to keep repeating the sales process like a traveling salesman. Each day you need to think up a new scheme or angle to sell a new set of crap from, and you have to hope that the web has a short enough memory that the scammy angles used to pitch past hyped up product launches don't come to bite you in the ass.

I don't mind when the get rich quick market work their core market, as there is a group of weak minded individuals who are addicted to buying that stuff. But I always get pissed off when someone claims that your field is trash or a scam (as an angle to sell something else), and then they later start trying to paint themselves as an expert in your field.

Here is a video snippet of Ryan Deiss exclaiming his ignorance of the SEO field & how he got ripped off thrice because he knew so little he couldn't tell a bad service provider from a good one.

"If you want to get free traffic you have to get good at the cut-throat game of SEO (which I for one am not). ... SEO for most of us isn't the right answer." - Ryan Deiss

And his latest info-product (in perhaps a series of dozens of them?) is called Perpetual Traffic Formula. In the squeeze page he highlights that it offers you the opportunity to... "Discovering a crack in Google algorithm so big it simply can't be patched. Being able repeat the process for similar results in UNLIMITED niches."

You don't have to be an expert to create an info-product!

The Droid has a pretty good review of how awful his sites are doing in terms of "perpetual traffic." :D

If you want to buy from a person who *always* has another new product with a secret short cut to sell, Ryan is THE guy. If you want to learn how to evaluate the quality of products being sold, here are some good tips on that front. And if you want to get a good overview of the internet marketing world for free you will love this.

Infographic: History of Search Timeline

PPC Blog has another cool infographic out. This one is called The History of Search: How Finding Stuff Online Became a $20 Billion Business.

Click on the below image to see the full version. And if you like it, feel free to use the embed code to add it to your website :)

History of Search.

Google Shows You How to Talk Out of Both Sides of Your Mouth (BETA)

Rel=nofollow to the Rescue

Years ago Google introduced rel=nofollow, claiming it as a cure-all for comment spam. Once in place, it was quickly promoted as a tool to use on any paid link. Google scared webmasters about selling links so much that many webmasters simply became afraid to link out to anyone for fear of falling out of favor with Google.

If You Don't Disclose You Are a Spammer

As the pool of links dried up due to the launch & spread of nofollow any ad network which used direct links was supposed to adopt nofollow or feel the wrath. Just ask Pay Per Post what Google can do to you if you sell links (to/through someone other than Google).

Google demanded that any form of paid link contain a machine readable and user readable disclaimer that it is paid for (even though in Google's marketing they highlight how some of their users are unaware the search results contain paid links).

What it came down to is if there was a monetary relationship associated with a link and you didn't disclose it then you were operating outside of Google's guidelines and may be considered a "spammer."

Selective Search Guideline Enforcement

I am one of many who have highlighted how by-and-large Google was responsible for killing off the link graph through their paranoia about "paid links," and their willingness to fund companies operating outside their guidelines that syndicate Google ads.

Our affiliate program on this site stopped passing link juice after a fellow SEO blogger outed it quite publicly. Other affiliate programs continue to pass PageRank. Highlighting Google's double standards invites more scrutiny and more selective arbitrary enforcement. Whereas promoting Google products earns free links. ;)

No Disclosure Required: WOOT!

Reading the news today I found out that VigLink bought out DrivingTraffic. Both are networks to help publishers monetize their outbound links. The claim about VigLink is the one of no-effort money:

"Quite simply, if you're a Web publisher who hasn't recognized the value of your outbound traffic, you are leaving money on the table," said Raymond Lyle, CEO and Co-Founder of Driving Revenue. "Dozens of our publishers make six figure incomes for a one-time investment of one minute of work. Who isn't interested in that?"

Note that "1 minute of work" doesn't really leave much time for disclosure. As stated in this video, the intent is to not offer any:

The page loads fast. And your site looks exactly the same. Even your links look and behave the same way. The only difference is that now when your visitors buy products or services you'll earn a commission. ... Once you have set up viglink you can sign in to view reports about your site. You can see how much money you are making every day and compare that with last week. You can see which merchants are the most profitable, and make decisions on who to link to in the future.

So basically Viglink is suggesting controlling who you link to based on whatever makes you the most money, and not providing any disclosure of the financial relationship.

AKA: paid links.

Presumably these VigLinks will still pass PageRank, but the affiliate stuff will be layered on top of the regular links using JavaScript. Pay affiliates using VigLink a bit of a higher percent for the exposure and you bought a ton of valuable inbound links for pennies on the Dollar.

Here is where it really gets screwed up: Google is an investor in VigLink.

Selectively allowing some links to pass link juice while arbitrarily blocking others indeed controls the shape of the web graph. It gives anyone who works with Google a strong competitive advantage in the organic search results over those who are not using Google endorsed technology.

Google also has a patent on automatically adding inline links inside content. Since they can't legally do it without permission of the webmaster, one presumes any implementation would be as part of a distributed ad network.

Makes you wonder about how evil undisclosed paid links are, no?

eHow.com Using Expired Domain 301 Redicts to Spam Google

Perhaps part of the "interesting data" Richard Rosenblatt was talking about was link anchor text on expired domains & cybersquatting efforts that he could redirect in bulk at high earning eHow pages.

Not to fear, Demand Media is a trusted Google partner, so the algorithm and engineers are prohibited to take action against the same activity which would get your website removed from the search results.

I am not sure how long Yahoo!'s link function will work for, but below are screenshots showing the inbound links pointing at these expired domains that eHow was exploiting.

After the domains got press coverage Demand Media quickly removed the redirects & the domains are generic PPC park pages.

The domain names are registered using a proxy for cover to hide who is behind this sort of activity, but if you click on the "Buy this domain" link it leads to AcquireThisName.com, which has been highlighted as an eNom front organization:

if these domains were acquired by Enom, fair and square and not from their own customers, then why all the deception, and not just offer these domains for sale through Enom?

Is this another example of registrar abuse?

Certainly, this maybe another reason for all domainers to take a long hard look at which companies they choose to do business with.

Buying expired domain names for links is something Matt Cutts loathes. In fact, the first time he came across spam it was someone doing the exact same thing eNom was doing above - taking a well linked to domain name and leveraging that link equity for another purpose (see the very first question in the following video).

The very technique that eHow uses today is *exactly* what caused Matt to create Google's anti-spam team!

Google's blind eye and double standards toward the large MFA spam sites are becoming such a big issue that it looks to be at the core of the marketing strategy for new search engines!

Portrait of an SEO

The following is a guest post by Kpaul. :)

A long time ago, on an Internet far, far away (when I wrote for fun - and for free), I did a piece called Portrait of a Blogger. The year was 2002 and blogging was just beginning to really hit the mainstream hard. If you’re not familiar with the audience at Kuro5hin.org, they’re a snooty version of slashdot readers if you can imagine such a thing. (Mentioning both of these websites is outing my age, I think. I better not mention Compuserve.) The story was published on K5 and is still available today. I was told once that it drew a lot of traffic, although Mr. Foster never would share the exact numbers with me. (I imagine he’s laughing somewhere on his yacht these days.) It’s interesting to see how many of the links are still active in that article.

In any case, I thought about that story the other day when I was lamenting the fact that I didn’t start publishing my own content on my own sites earlier. (I spent the bubble years working for corporate media on the Death Star.) I let the idea of the piece gel in my mind for a while. I knew I couldn’t do another portrait of a blogger piece. I mean, I could, but I don’t think it would do as well as the previous one did. Also floating around in my mind was an okay from the esteemed Aaron Wall to submit a guest post for SEO Book. Eventually, these two ideas crossed paths, exchanged emails, and set-up a plan to combine the old Portrait of a Blogger piece with something relevant for Aaron’s audience.

So, without further ado, I give you a portrait of an SEO circa 2010

The SEO Newbie

Favorite software: SENuke
Favorite website: webmasterworld.com
Favorite drink: Jolt (cause that’s the stereotype and it was in Hackers the movie)
Favorite viral video: Numa Numa
Favorite rapper: 50 cent

A friend of their friend’s sister’s little brother makes money online, so it’s totally going to be possible. The SEO newbie looks forward to a life of an hour of work every week for untold riches. While more and more people are trying to make money online, many of them just don’t have what it takes to work for themselves online. While chasing the magic button - also known as the golden tip, the super duper affiliate secret, or even the extra double tip for making money online - the SEO newbie tends to get distracted from the one obvious thing that equals sucess - i.e. work. Once most SEO newbies find out making money online takes work (more and more of it as time passes and competition increases), they drop out of the game and go back to whatever it was they were doing. Before that, they’re usually found on Webmaster World gabbing about the latest “Google Dance.”

SEO Auto-Blogger

Favorite software: WordPress MU
Favorite website: Any with an RSS Feed
Favorite drink: Watered Down McDonald’s Pop (mass produced sugar water that sorta resembles soda)
Favorite viral video: Lazy Sunday (something everyone copied)
Favorite rapper: Black Eyed Peas

If one page in the SERPs is good, and ten pages in the SERPs is great and so on and so forth, what about 1 billion pages? That would be best, right? But how to write a billion pages worth of content? Enter the auto-blog. This spray and pray method of SEO is still tried by many new to the industry, but it is becoming more and more difficult to keep a site like this going for more than a few months. That’s not to say that it doesn’t exist, but there are few low level auto-bloggers who don’t end up getting burned. And yet auto-bloggers make up a large slice of the SEO landscape. This will undoubtedly change in the years ahead.

The mainstream media also plays this game :D

SEO Link Merchant

Favorite software: Yahoo! Site Explorer or any Online Link Tool
Favorite website: Any that will buy or sell a link
Favorite drink: Absynth (not legal anymore)
Favorite viral video: Star Wars Kid
Favorite rapper: Tupac

These people live and dream about links. From the value of links to anchor text to placement to link wheels, their world revolves around the power of the link. Since link selling and buying has gone into a shady black market type atmosphere over the last few years, some of these characters can be shady. A common technique is to peddle “text advertisements” for a low monthly rate to unknowing webmasters. While there are some websites and email accounts still operating in the open, there are also black hat link merchants in some very bad neighborhoods. While I probably shouldn’t mention it, there are some who see short term success using these methods. The thing is, online you want to play the long game. And for that, buying and selling links is out.

Phony SEO Guru

Favorite software: The autoresponder
Favorite website: forums.digitalpoint.com
Favorite drink: Acai Juice
Favorite viral video: That annoying frog techno thing!
Favorite rapper: Vanilla Ice

The schemes and scams are plentiful in the world of the phony guru. Yes, you too can make money by showing others how to make money. A lot of these so called gurus don’t even make money on the Internet other than peddling their ebooks and membership sites. The problem with these people is that after a person is burned by so many, they run the danger of not spending ANY money online. This can be just as bad as wasting money on worthless, phony gurus. For example, an SEO Book membership is a wise investment that will pay off in the long run. Don’t be afraid to invest money wisely after being burned by phony SEO gurus.

SEO Tail Chaser

Favorite software: The latest WSO!
Favorite website: warriorforum.com
Favorite drink: Budweiser (or something domestic and bland)
Favorite viral video: Anything their neighbor liked
Favorite rapper: Eminem

Usually found huddling around the phony gurus (which grow in numbers every month it seems as more and more people try to monetize the web), tail chasers are those people who try to copy current successful marketing methods online. If you study the whole rebill period of Internet marketing, there were a few people who started off strong (and somewhat legit), but as more and more people got into the game, the boundaries were pushed more and more. The highlight for me, I think, was seeing an elderly lady talking on a YouTube video about posting links to Google to make money. While some tail chasers may be able to make small (or even moderately large) amounts of money in a short time, they lack the skills (and vision) to replicate the success on a continual basis.

<INTERMISSION>

We interrupt this guest blog post for a shameless plug. On one of my blogs, I’ve started using D&D character alignments instead of ‘colored hats’ to tag various methods for SEO and marketing online. Okay, it’s not really unique and I doubt it catches on, but it gives more opportunities to categorize Internet marketers. We now return to our regularly scheduled guest blog post. Thanks, Aaron!

</INTERMISSION>

White Hat SEO

Favorite software: Vanilla Internet Explorer
Favorite website: mattcutts.com/blog/
Favorite drink: Water (good for you)
Favorite viral video: Anything LOL cats
Favorite rapper: DJ Jazzy Jeff & The Fresh Prince

When not wearing their “I Heart Matt Cutts” t-shirt or coming up with ways to make their website more unique and useful for visitors, these individuals like to volunteer at local homeless shelters and nursing homes. But seriously, these people make an effort to do things above board online. Many are still able to make a good living while doing this. Many don’t have the patience for white hat SEO, which is a shame, because it’s one of the better long term methods of success online. Think of your visitor after they get to your site more than trying to trick Google into ranking you high in the SERPs and you’re on your way to becoming a high level white hat SEO, which comes with many special abilities and powers.

Black Hat SEO

Favorite software: xRumer
Favorite website: Any that will take a link - willingly or not
Favorite drink: Whiskey (wine is fine but liquor is quicker)
Favorite viral video: Anything from 4chan
Favorite rapper: NWA

There are some who fall between the tail chasers and the SEO grandmasters (of all persuasions) who have the ability to recognize an opportunity and jump on it, making a bit of money along the way. The problem is that most methods used with Black Hat SEO are short term. They may have a huge payout, but the model is not sustainable unless you can stay somewhat ahead of the crowd when it comes to new things to exploit online. While some are fine with this, most at this level have the ability to come up with unique ideas on their own. When you consider that there’s about the same amount of work involved and the non-black hat techniques last longer, it makes sense to try to get beyond this stage in your SEO evolution.

Grey Hat SEO

Favorite software: A little of this and a little of that
Favorite website: wickedfire.com
Favorite drink: Coffee (some mornings with a dash of rum)
Favorite viral video: Boom Goes the Dynamite
Favorite rapper: Drake

If you mix black and white, you get grey, of course. The grey hat SEO uses both white and black hat techniques. While they’re more open than those who wear a black hat most times, they are generally more cautious than people into white hat SEO. For the most part the mix of both (good and bad) vary at any one time with grey hat SEO. Over the years, this label has morphed somewhat into a blue hat SEO, with a few key differences. Grey hat SEO, to me, means more about techniques while blue hat SEO concentrates on a mixing of web properties with different values.

Blue Hat SEO

Favorite software: A little of this and a little of that
Favorite website: wickedfire.com
Favorite drink: Coffee (some mornings with a dash of rum)
Favorite viral video: Charlie the Unicorn
Favorite rapper: Ice Cube

I’m pretty sure I know who came up with this phrase, although I’m not exactly sure of their definition of the term. To me, it follows the ‘SEO Empire’ line of thinking that was created by Eli at Blue Hat SEO. So, it would be a mix of pure white and somewhat grey (or downright black) websites in a network online. So, garbage sites at the bottom of the pyramid point up toward the money sites at the top of the pyramid. How this differs from straight grey hat SEO, I’m not sure, but it’s used by quite a few people these days. For the most part, Blue Hat SEO peoeple are well versed in the way the Internet works. And if they don’t have skills, they have someone in their network who does. There are quite a few high level blue hat SEOs currently operating online.

Article Marketer

Favorite software: Google Docs
Favorite website: ezinearticles.com
Favorite drink: Green Tea (proven weight loss, act now!)
Favorite viral video: None (text based viral only)
Favorite rapper: Mos Def (very lyrical)

When they’re not actually banging out articles for their own or other sites, they’re thinking up ideas and topics for their next round of articles. They know the value of content online. This group is split like most others into various levels of quality ranging from garbage to modern literature and everything in between. You will notice if you look closely that the more successful article marketers have higher quality content. This is no coincidence. Of course, good content is only one small piece of the puzzle, but you may want to consider outsourcing your content needs to an article marketer.

Viral SEO Ninja

Favorite software: Anything related to email
Favorite website: digg.com
Favorite drink: Tang (it’s orange, it’s different)
Favorite viral video: lonelygirl15
Favorite rapper: Kanye West (marketing magic man - good or bad)

When it comes to linkbait and causing ripples in the blogosphere, there’s nothing like the skills of a high level viral ninja. Part Charlie the Unicorn, part Star Wars Kid, and with a dash or two of LOL cats and one very, very, extremely tiny bit of 4chan, the viral ninja can mix media to send a message, get a laugh, or compel people to tell their friends about the content. As more and more people come online and try to be viral, it’s becoming more and more difficult to be unique and stand out from the millions of other people online who are vying for attention. The viral ninja understands this and is already working on three or four projects that will drown the numbers for the “Please don’t taze me” video.

SEO Grandmaster

Favorite software: LAMP
Favorite website: SEOBook.com
Favorite drink: Vitamin Water (expensive, but worth it)
Favorite viral video: Dancing baby (old school...)
Favorite rapper: Grandmaster Flash

You don’t hear from these people too much on the forums or at conferences. They don’t typically have a very active blog. They do, however, spend their time making money online - most times quite a bit of it. They apply their SEO knowledge quietly in the background, slowly building their empire piece by piece. They understand marketing and business principles and employ them. These people learned early on that wasting time online - especially at forums chasing the magic button - is not a good thing. They learned how to buckle down and apply the knowledge that everyone who’s anyone has. They know it’s all about applying the information rather than just knowing about it. While you don’t hear much from these people publicly, when they do talk quite a few people tend to listen.

Real SEO Guru

Favorite software: Firefox browser + extensions
Favorite website: Any that they own or are involved with
Favorite drink: Orange Pineapple Juice (sweet, sour, but good for you)
Favorite viral video: All Your Base Are Belong To Us (cause they do)
Favorite rapper: Jay-Z (making piles of money)

What are the lyrics from Ghetto Boys about real gangsters not talking much? Go Google it. (Sorry, Matt, it’s a verb now. You know there are secret Google parties celebrating the fact. Smile.) But yeah, real gurus aren’t all talk and no action. Real gurus of the industry don’t pitch anything and everything just to make a buck. The real gurus are few and far between, but they do exist. If you run into one, be nice to them. Unlike the SEO grandmasters, they’re more public and don’t mind interacting with the public. That said, they tend to value their time, so don’t waste it. This path has the most opportunities for people who are into SEO. (In gaming terms, it has the highest level cap.) It’s a long road, and it’s not a quest that can be undertaken alone, but if you’re serious about SEO, this is the route you want to take.

The Future of SEO?

If you’ve been around for any length of time, you know that the Internet is still constantly changing. Some of the changes are for the better and some aren’t as good, but they all are something that everyone who works online has to deal with. The SEO of last week - or even today - isn’t the same SEO that is going to be in operation over the next decade. Personally, I see the word organic being more important.

By organic SEO, I mean not mass produced, not a trick, not a scam, not a scheme, but an actual relationship between publishers and website visitors. The sites that are able to build communities around themselves are going to be the ones that survive, I think. And there is no method of SEO known to man that can create a community - a real one - out of thin air. That said, SEO can be useful to help draw people to a website that is worthy of a community forming around it.

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The above was a guest post from K. Paul Mallasch, who runs kpaul media, which publishes local news communities like Anderson Free Press as well as many niche websites. You can contact him at kpaul.mallasch@gmail.com

A disclaimer from Aaron: I thought it was fun, but I loath rap music (especially that from asshats like Kanye West), and I realize that being a publisher in the SEO space is way more profitable than being labeled as an SEO guru. I also didn't put the last picture in because he used me...and I felt that would have been a wee bit egotistical for me to publish a guest post highlighting me like that. ;)

But the post is still a lot of fun & I am sure you can associate with at least 1 or more of the above profiles. If not then you haven't been in the SEO space very long yet! ;)

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