Content Farming - SEOs Get It, Journalists Don't

Recently, there have been a series of negative articles about content farms.

Content farms, such as Demand Media's eHow and similar low-cost content publication sites, are now deemed an industry "concern". "Industry" being the traditional publishing idustry, and concern presumably being "competitive threat".

A trade group called the Internet Content Syndication Council (ICSC) has been circulating a document entitled "Council To Counter Web Content Generators Growing Clout". They talk about "job threatened journalists" and "diminishing content standards". Look, see what happens when the proletariat gets their hands on the printing press! :)

The pundits have also weighed in. So many journalists, eh. Looks like an over-supply if you ask me :) Some of them could learn a thing or two from SEOs.

For starters, many seem to be working on the false premise that Google returns "quality" results. Since when has Google ever been about "quality" results? Google's aim is to return links the searcher finds relevant.

"Quality" and relevance may not be the same thing, and thinking in terms of an arbitrary notion such as quality is to misunderstand what Google does.

For example, if a searcher, with a below-average level of reading in English wants a quick answer to a question about the common cold, then who's to say a simple, peer-produced bullet-point explanation is less relevant than a doctoral thesis on the same topic? Everyone benefits when the answer is factually correct, of course, but there's nothing to say the content mill won't offer factually accurate content just because the production process is low cost. If geared towards rankings, the content may also offer the facts in a format the user finds more useful.

Google is mostly about utility. It's about providing value to the end user. "Quality" is very much in the eye of the beholder.

Let's also not forget Google argue that Adwords - advertisements - are content, which are also rewarded by a relevance algorithm. I'm guessing the council won't be arguing that advertisements can be a form of quality content any time soon.

And what does quality mean anyway? And who defines it? I think I can guess what the elitists at the ICSC may argue - they know what it is, and they will define it! Nice work if you can get it, I guess.

Solutions To The Content Crisis

One solution they offer to this perceived "content crisis" is to create a set of public guidelines for internet content, or an accreditation process for syndicated content.

Heh.

Reminds me of the SEO "best practices" debates of years past. The result will be the same, of course - they'll end up talking to an audience that consists entirely of themselves. Everyone else will be getting on with the job of producing content.

What concerns us is that most of these new content syndicators are producing low-quality articles that are link based,” said Tim Duncan, the ICSC’s recently installed executive director.
“They are designed to score high on search. That drives down high quality content.

Wikipedia, and white hat SEOs, might not agree, of course. Content can both be ranked well and be highly relevant. This is, after all, Google's aim.

Some ICSC members have even advocated reaching out to Google to urge the search giant to tweak its algorithm to give more weight to content quality in its search results

Hilarious. I think they mean "any content they think is quality" Perhaps Google can send them a regular cheque each week, too! I suspect money is the true driving force, as opposed to any real concern for editorial standards. Have you seen some of the trash the MSM serves up?

Quality stuff, certainly.

At the end of the day, quality standards arguments are pointless. Besides the confused frame of journalistic news vs Q&A-style content, the end user decides the level of quality they will accept and pay for on the internet. The real problem traditional publishing and the mainstream media is facing is that their business model is screwed. Their content production costs are simply too high, and they are being undercut. If they think that people want higher quality, then the answer is simple - produce it and let the visitor decide.

And get some good SEO advice, so they don't inadvertently bury it.

Google Joining In?

In a further twist, Google might be looking to join the content mills at their own game. An interesting patent, "Identifying Inadequate Search Content" identifies keyword areas where there is search demand, but low levels of relevant content. That's essentially what Demand Media does. Assuming Google don't/can't get into publishing for every vertical in existence, Google would do well to make this information publicly available.

Especially to their hordes of Adsensers ;)

How You Can Create A Successful Content Mill

Ignore mainstream media journalists and whiners who like to form councils.

Understand that Google is looking for relevant content. "Relevance" is, in the end, deemed by the searcher. If there are a lot of searches for "pay levels for doctors" and you publish a page that shows "pay levels for doctors", then you are producing relevant content and Google will reward you.

Google are, no doubt, measuring how relevant visitors think the information is, and there are various signals that could be used to determine this. These signals will not come from a council of elitist, self-interested old media. The signals will be based on user activity and user voting patterns. These signals must be scalable i.e. links, visits, timeliness, recommendations, frequency of appearance, re-quoting, etc.

Increases in "quality" i.e. content depth and accuracy - will come from end-user voting. If users want deeper answers to search questions, either Google will deliver it, or users will abandon Google and go somewhere that provides it. Perhaps that's what ICSC should do - start their own search engine ;)

Having said all that, a lot of samey, lightweight content won't survive in the long run, because Google likes to provide variety in their result sets. Look for ways to differentiate your content. Quality is only one - arbitrary - point of differentiation. You'd be better concentrating on aspects such as ease of access, readability, findability, relevance and freshness.

Keep the end user firmly in mind.

Google As Publisher...

They might prefer to use different labels (so as to minimize fear in the marketplace & slow down regulators), and they might claim that aggregate statistics control the investments & thus they are not really publishers, but they plan on skimming a big piece off of the top of many big markets.

AdWords was just the start!

Videos, maps & product search...look how Google self-deals in each while managing to call it a value added feature (or some such).

If Google collects data, hosts data, sorts data, recommends personalized consumption habits, and then makes small investments in new content from proven past performers (and then give them a bit of stealth promotion on their network)...how is it possible for Google to lose money? (Outside of lawsuits)?

Google can claim they are "democratizing" media while showing a string of successful partnerships based on investing using real time data that nobody else as access to. Meanwhile if you are a publisher they are gutting your business model through paying people to snag your content and wrap it in their ads, while they also redirect user attention to the companies and acts they have invested in.

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

Note that there was no moral debate on the table. Their only internal limitation to setting up a hedge fund and swaying the markets to increase the profits of their trades would be that they thought it was illegal.

How much of the online ecosystem can Google consume before publishers promote other views of the web?

One way to fight this sort of strategy is Yahoo!'s sell or outsource everything but the logo strategy. It increases short term margins, but in the longrun it makes one that much more vulnerable. Google can always buy the partner of choice and then ride off the free promotion & validation that the acquisition gained from earlier partnerships. Sure adding more noise to a noisy market can bring in eyeballs, but fleeting ones. Death by a thousand compromises.

The other is to work in markets too small for Google to be interested in. Or to define & create a new vertical, like Zynga did. Even with as shady as Zynga's founder is, longterm that company is in a better position than Yahoo! is.

I Like it, I Love it, I Want Some More of It

In information retrieval some words are powerful / potent. They are really descriptive and get right to the point of what someone is looking for. Other words have little to no value. The reason the concept of stop words came about is that you really couldn't tell much about a document by it including words like a, an, the, and, are, etc. The flip side of stop words are words which have a high discrimination value. Recently I was searching to see if there was a FedEx office in the town where my mom lives, and in spite of there not being one, Google still returned multiple pages (the home page and the store locator page) from the FedEx.com website in the search results. That was a great search result, and Google was smart to place more weight on the core concept word in the search (FedEx) while placing less weight on the location.

Words which have a low discrimination value may have a higher discrimination value when combined with neighboring words. Hot and dog might have a different meaning when they are next to each other. As explained in this Wired article:

Take, for instance, the way Google’s engine learns which words are synonyms. “We discovered a nifty thing very early on,” Singhal says. “People change words in their queries. So someone would say, ‘pictures of dogs,’ and then they’d say, ‘pictures of puppies.’ So that told us that maybe ‘dogs’ and ‘puppies’ were interchangeable. We also learned that when you boil water, it’s hot water. We were relearning semantics from humans, and that was a great advance.”

But there were obstacles. Google’s synonym system understood that a dog was similar to a puppy and that boiling water was hot. But it also concluded that a hot dog was the same as a boiling puppy. The problem was fixed in late 2002 by a breakthrough based on philosopher Ludwig Wittgenstein’s theories about how words are defined by context. As Google crawled and archived billions of documents and Web pages, it analyzed what words were close to each other. “Hot dog” would be found in searches that also contained “bread” and “mustard” and “baseball games” — not poached pooches. That helped the algorithm understand what “hot dog” — and millions of other terms — meant. “Today, if you type ‘Gandhi bio,’ we know that bio means biography,” Singhal says. “And if you type ‘bio warfare,’ it means biological.”

The concept of discrimination value also has value outside of search. If you get feedback from an anonymous person on a third party site it gets so much weight (maybe none). If you get feedback from someone who is not anonymous it gets more weight. If you get feedback from a paying customer it gets much more weight. One of the most powerful levels of discrimination is indeed payment. If a person pays you the (typically) you know who they are & they have expressed significant interest beyond what most people will do.

I think online business models which require payment from the typical user are not hyped and are not considered sexy because those sorts of models are often slow growth due to the penny gap and the requirement of greater trust to convert. Whereas a programming marketer can hear of a new network (say Pippers) and create 40,000 bogus accounts in an hour. The owners of Pippers can then talk about their explosive growth rate in the media, which earns them media coverage. In turn this increases their ability to raise capital and continue their "growth."

But many of the social networks end up being a bag of smoke that will fade because they aim to bucket people as beings in a database and are so broad as to have little discrimination value. I have been reading You Are Not a Gadget and he compared the depersonalization on the broad social networks to the beauty of an oud forum he is a member of. Much like charging for admission, obscurity is a filter which improves the level of discourse.

Compare the comments on *any* niche topic site to what you find on Youtube. If you can show me a site which is consistently worse than Youtube (outside of site like 4Chan which specialize in creating campaigns to try to make epileptic people have a seizure) I will buy you a beer then next time we meet. :D

My wife deleted her FaceBook account because she was annoyed at some people's behavior on it. Part of the problem with the social networks is that they are so broad and so frictionless that your activities on them really don't matter. As a marketer there are a couple ways to play such networks

  • largely ignore them
  • be friends with everyone
  • use bots

As a marketer the first of those options means you are saving your time for higher paying areas, and the second of those options means more people seeing more distribution of whatever content you create. But many of the helpful aids are at best dubious short term opportunistic ploys. The third option means you are one of the people who is going out of their way to make the web worse, but many will. ;)

Generally any given month I haven't been on Facebook for more than 5 minutes outside of writing & targeting ads, or approving a few real "friends" and hundreds to thousands of other people who claim to be my friend. But if you message me on FaceBook there is a precisely 0% chance of getting a reply. :)

When FaceBook launched Beacon a few years ago they wanted to sell peer pressure as an ad unit. If brands can show that your friends did something then maybe that can help lead to a cumulative advantage sort of environment which has you follow along. Beacon was such a flagrant violation of user privacy that it was quickly shot down by the market. But with the new FaceBook like button, they are trying to use like button clicks to put your name on ads:

"Marketers have always known that the best way to sell something is to get your friends to sell it," says Sheryl Sandberg, Facebook's chief operating officer. "That is what people do all day on Facebook. We enable effective word-of-mouth advertising at scale for the first time."

In the short run it may work, but in the longrun I don't like the concept. The reasons are many.

  • You can agree with one particular thing a person says and like it while being nearly diametrically opposed to their general philosophy on life. For example, when we launched that "How Google Works" infographic last week one of the reporters who wrote about it also mentioned how sleazy and nefarious the SEO industry is, and yet he was willing to promote the efforts of an SEO because it was published on a blog with a sister acronym in the domain name. :D ... Of the 3,000+ people who voted for us likely less than half of them know anything about me, or even my association with the site.
  • You can like one product from a company, but not like their other products. I have worked with GoDaddy as a registrar for years. And I have had no complaints on that front. But they also sell some search engine submission service that I would cringe to see my name promoting.
  • You click the like button once on one page. Years later the business you liked is trading in another area...they moved from remnant inventory to spyware, and you recommend them. ;)
  • An individual can have multiple lines of work. You might like Thom Yorke's role in Radiohead, but you might not like his political views or his solo work.
  • Imagine when someone buys a car that you passively recommended which has a manufacturer defect. One of their loved ones gets killed and you eat the blame.
  • Just like businesses, people change over time. This is especially true in the area of business, where a former partner or friend goes out of their way to betray your trust and screw you.
  • How do likes work with 301 redirects? How do they work when the content of the page shifts from genuinely useful to hawking trash with a hyped up sales letter?

A like doesn't have much discrimination value. And it shouldn't last very long. Why did you like something? When did you like it? Who knows.

Did you like Toyota right up until the brakes didn't work? After you get out of the hospital, how do you feel when your friend asks you why you are still promoting their products? Did you work for a digital sharecropper overlord like Jason Calacanas who required you to push their junk elsewhere? How did you feel when your friend asks you why you are promoting his trash after he canned you with 1 week notice while boasting how they are nearing break-even and have over 8 years of cash in the bank?

Once people experience that will they become jaded and stop recommending things?

And if there isn't a backlash against the like button then given enough time one of your friends will like almost anything. It doesn't matter the product/service/offer ... if your pool of "friends" is wide enough then one of them is receiving an affiliate commission for pushing something, one of them owed a favor to the merchant, and one of them liked the merchant because they picked up a tab in the bar last month.

A wave of 100 million blond hair 18 year old girls who are lonely have joined FaceBook friending up with the desperate and then promoting scammy wares to them via automated clicks of the like button. And then of course there will be services like SpikeTheVote.

Sure a fad might work in the short run, but given enough time and there will be friend recommendations for almost anything. Once the novelty wears of does any of it matter?

In time any database record can be an ad targeting mechanism. Will I be promoting some of the products my thousands of "friends" create or endorse by a click of the mouse which changes purpose after the fact?

At first online petitions were powerful because they seemed to have mobilized swaths of people. But then people realized that a vote represented nothing more than an automated form submission and clicking send. 2 clicks of the mouse. Not much discrimination value.

Excessive Worry About Competition

Excessive Worrying = Missed Opportunities

Do you worry too much about who you are competing against? Do you feel competitive research leads to many more "move on please" rather than "let's go!" types of outcomes? Believe it or not, it may be a good sign.

Competition is usually a good thing, it means something is worth fighting for. A lot of hucksters try to push ways to "Uncover hidden markets that nobody else knows about, that you can make millions from with little effort, and that is yours for just $47."

Here is the problem with lots of opportunity and 0 competition: businesses follow the money and shorten the supply chain. If an ad market is ripe it means that some of those advertisers are also going to be publishers in the same darn market, targeting the same darn keywords. So if there is big money there will be competition. It is unavoidable.

It isn't so much that specific niches are glossed over, but more to do with the fact that the bigger a site gets and the more keywords it targets the less time it has to focus on optimization at a granular level. These kinds of sites leave the door open for you to come in and attack some of their profitable keywords by creating niche sites around those topics.

Consider that our competitive research tool shows a site like ehow.com coming in with 2,948,950 organic keywords they are ranking for in the top 20 (our tool is powered by SEM Rush). Lots of opportunity there!

However, if you are interested in your public-facing status then chasing the long tail of a large site may not be the sexiest thing in the world to you. If you are more interested in profiting from your efforts versus tooting your own horn then what should matter is how you can maximize profits while keeping expenses low.

Certainly I'm not advocating that you only focus on niche keywords. If you have the resources then you can go after just about anything you want. In either scenario, long-tail plays or broad keyword plays, there should be less worry about who your competition is and more focus on what their weaknesses are, and how you can beat them.

There is an intimidation factor that is at play in just about every situation where competition exists:

  • Business
  • Sports
  • Personal Relationships

Much of that intimidation is perceived by the underdog or the new competitor. The following points are worth keeping in mind:

  • The best team is not unbeatable
  • The biggest site is not strongly optimized for all their keywords
  • The girl or guy you are quite fond of is actually approachable

Many of the competitors at the top of the heap are there for a reason, they're good. However, it doesn't mean they are invincible or beyond reproach. In fact it's quite the opposite. Some of the upper echelon sites in your market likely have become lazy or so big that can no longer reasonably go all out on all their profitable keywords. There are no shortage of tools out there that can help you find potential keywords for your sites by looking at profitable keywords of a competitor's site.

You can't win every battle you fight but if you win more than you lose then you are on the right track. Competing, in and of itself, is not going to mortally wound you if you lose :-). Look at is as a learning lesson.

  • What could you have done better?
  • Where could you have pushed harder?
  • Do you need to rethink how you view potential opportunities?

The great thing about SEO is that (providing you don't torch the site) there is no 4th quarter, final set, TKO, or bottom of the ninth. Your timing for failing is based on when you think it's a good time to pullout and move on to another site or use a new approach. The effective holding cost for a paused project is ~ $0. And who knows, maybe a future algorithmic update or another search engine will take a liking to your site. As long as you have analytics installed you are passively collecting market data - not a bad deal.

Google can be the referee that makes a horrible call which ends the game but more often than not you get to be the decider of when to push and when to pull.

So rather than worrying about your competition you are better off tracking your competition and figuring out where they are outperforming you. I like to keep a running log of ideas and processes that my competitors are implementing along with notes on where I think they are weak and how they could do what they are doing more efficiently.

Armed with that information, along with your findings with free tools like SEO For Firefox, you can start in on a thorough review of your competition and the feasibility of competing against them. Some core items you'll want to consider are:

  • Number of backlinks from unique domains (don't be *wowed* by the total link count)
  • Anchor text distribution of external links
  • Domain age, relative to when the site went live (with a few links)
  • Presence of the site in some of the better directories like Yahoo! and Business.Com
  • .Edu Links
  • .Gov Links
  • Is the exact match ranking?
  • Is it all big brands?
  • Are there lots of interior pages ranking?
  • The on-page optimization of the site/page
  • PageRank
  • and so on...

There are a number of tools available which can help you find weak spots in areas where your competition is possibly profitable and where potential opportunities exist for you. We did a review of the following spy tools :

We outlined a competitive intelligence strategy recently in addition to having quite a bit of killer tips and posts in the competitive research threads inside the forums.

So while you shouldn't ignore the competition completely you shouldn't be consumed by it, particularly if it's just a few metrics that you find daunting. There are enough tools out there where you can try and clone most of their best strategies but at some point you will have to go beyond what they are doing.

Studying a competitor's on and off page strategies, then finding ways to exploit weaknesses and build on strengths, will produce a better ROI for your business rather than searching for "The Fountain of No Competition" promised by that really nice internet marketing fellow you got that email from :-).

And SEO is just one phase of your analysis. Does everyone have the same business model? Are there other options? Do they all have similar site structures? Are they so inspired by one another that they are missing huge market segments?

Free Data

The other day a person contacted me about wanting to help me with ad retargeting on one of my sites, but in order to do so they would have had to have tracked my site. That would have given them tons of great information about how they could retarget all my site's visitors around the web. And they wanted me to give that up for free in an offer which was made to sound compelling, but lacked substance. And so they never got a response. :D

It is the same reason I don't use services like AddToAny on our websites.

Given that we live in "the information age" it is surprising how little people value data & how little they expect you to value it. But there are still a lot of naive folks online! Google has a patent for finding under-served markets. And they own the leading search engine + the leading online ad network.

At any point in time they can change who they are voting for, and why they are voting that way.

They acquired YouTube and then universal search was all the rage.

Yes they have been pretty good at taking the longterm view, but that is *exactly* why so many businesses are afraid of them. Google throws off so much cash and collects so much data that they can go into just about any information market and practice price dumping to kill external innovation & lock up the market.

Once they own the market they have the data. From there a near infinite number of business models & opportunities appear.

Google recently became the #1 shopping search engine. How did they respond? More promotion of their shopping search feature.

All those star ratings near the ads go to a thin affiliate / Google value add shopping search engine experience. Featured placement for those who are willing to share more data in exchange for promotion, and then over time Google will start collecting data directly and drive the (non-Google) duplication out of the marketplace.

You can tell where Google aims to position Google in the long run by what they consider to be spam. Early remote quality rater guidelines have highlighted how spammy the travel vertical is with hotel sites. Since then Google has added hotel prices to their search results, added hotels to some of their maps, and they just acquired ITA software - the company which powers many airline search sites.

Amongst this sort of backdrop there was an article in the NYT about small book shops partnering up with Google. The title of the article reads like it is straight out of a press release: Small Stores See Google as Ally in E-Book Market. And it includes the following quote

Mr. Sennett acknowledged that Google would also be a competitor, since it would also sell books from its Web site. But he seemed to believe that Google would favor its smaller partners.

“I don’t see Google directly working to undermine or outsell their retail partners,” he said. “I doubt they are going to be editorially recommending books and making choices about what people should read, which is what bookstores do.”

He added, “I wonder how naïve that is at this point. We’ll have to see.”

If they have all the sales data they don't need to make recommendations. They let you and your customers do that. All they have to do to provide a better service than you can is aggregate the data.

The long view is this: if Google can cheaply duplicate your efforts you are unneeded duplication in the marketplace.

Look at the list of business models Google publicly stated they were leery on:

  • ebook sites
  • get rich quick
  • comparison shopping sites
  • travel aggregators

3 out of 4 ain't bad. But even on the one they missed, they still have an AdSense category for it. :D

How Does Google Work?

This image might need updated in the years to come, but it does a great job laying out how Google works when you type a query into their search engine. Search is so easy to do that it is hard to appreciate how complex it is unless you take a look under the hood. Which is exactly what this graphic does :D

Click the image to get the full sized beefy image :D
How Google Works.

A side benefit of this graphic is that it should help prospective clients realize how complex SEO & PPC campaigns can be. So if anyone is trying to be an el cheapo with their budget you can use this to remind them how complex search is, and thus how time consuming and expensive a proper search marketing campaign is.

The Inside Line On SEO

There are so many blogs on search marketing.

Then there are so many forums.

And Tweets.

So much SEO noise, and so little time.

So how does anyone make sense of it? The deluge can be overwhelming for the experienced SEO, let alone the poor beginner. If you are just starting SEO, here are the ten areas you should spend most of your time on when you're starting up.

1. Stop reading Blogs/Forums/Tweets/Facebook. Too much noise, takin' all your time :)

"SPAM = Site's Positioned Above Mine" - Greg Boser

2. Before you do any SEO, define your niche. What service does your website provide? Who are your readers/customers? What can you provide that your competitors don't? How are you going to deliver your services and make a profit? There's no point ranking well for a business that doesn't work at a fundamental level.

"Search is a "reverse broadcast system." In a broadcast system, advertisers spend lots of money to reach a mass audience, hoping to build desire for a product or service. But most of the audience is not interested in their pitches. Search is the reverse. Each search is an expressed desire, something that someone at a particular time actually wants. Advertisers can tune in to the "desire-cast" that’s going on." - Danny Sullivan

3. Set business-specific goals and include a time frame. "I want to make x in 12 months". "I want 20,000 RSS subscribers in 6 months". It's important to be specific. It's difficult to measure goals that aren't specific i.e. "be popular".

Never let your ads write checks that your website can’t cash. - Avinash Kaushik

4. Create interesting content. If you know your audience, you already know what content they will find interesting. If you don't, revisit #2.

I’m not even sure myself - Matt Cutts

5. Links. You need links Not just the Google-juice, PR-passing kind. Links are the arteries of the web, Traffic travels across links, so all links, crawlable or not, no-followed or otherwise, are valuable. Asking for links from people you don't know is pretty much a waste of time. It's a better idea to create fantastic content, then link out to the popular people who can spread the word. They'll follow their inbound links back to you. Make sure that what they find is remarkable.

The urgent can drown out the important. - Marissa Meyer

6. Do SEO. All that stuff you're no longer reading in #1? It all boils down to this: put keywords in your title tag, write on-topic content, make sure your site is crawlable, get links to that content, get people to talk about you. Repeat.

We're trying hard to find user needs that aren't being met at all- Larry Page

7. After a month, look at your keyword referral logs. Take those terms and plug 'em into keyword research tools. Create a list of 30 keyword terms that your audience would find interesting. Those are your article headings. Write 30 articles. Repeat.

8. Look at your competitors. Your competitors are ranking well for a reason. They're being mentioned elsewhere for a reason. What are they doing that you're not? Reverse engineer their sites i.e. who links to them, find out what articles they publish and find out who is talking about them, and why. Emulate them, then go one better. Either that, or stop competing with them directly i.e. define a slightly different niche.

We are currently not planning on conquering the world - Sergey Brin

9. Get social. Social media is often over-hyped, but the principles, and numbers behind it, are sound. Getting mentioned is the new link building. It's about building connections between people. Google has a problem. Using links as a measure of relevant content doesn't work as well as it used to, so you can be sure Google will be using an ever-more complex set of signals. These signals will involve the connections people make with your site. That's really what Google wants to know - who is most relevant. Consider the many different ways people can connect with you, and enable those connections.

10. Start reading the blogs/forums/twitter. The irony, of course, is that I've linked to some truly great resources and thinkers :)

If you've followed the ten steps above, you're 80% of the way there. The final 20% will take a while longer, and that's where the minutae comes in.

Keep in mind that some of the most lucrative SEO information isn't likely to be published in the public domain. Cultivate personal networks to get this information. This is true of any business endeavor.

Network :)

Building a Business by Focusing on Angry Overly Important Individuals?

I just read a WSJ article about how some hotel chains are trying to woo people leaving negative remarks publicly about their brand.

'I Hate My Room,' The Traveler Tweeted. Ka-Boom! An Upgrade!

Generally speaking, the idea is crap.

In essence they are spending resources trying to make the most unsatisfied segment of their market happy, and rewarding people for trashing their brands with free upgrades & other perks. And so it teaches more people to complain & to find arbitrary things to complain about. Hence the friendly article offering the tip on how to get free room upgrades, with tips like: "Have a lot of online friends or followers. Hotels will pay more attention to your requests."

Hey Ritz-Carlton & Shangri La ... we have 10,000's of readers and you suck! Please save my complimentary upgrades for the next time I am in town. :D

Does anybody think those leading brands got to where they are by tracking complaints on Twitter? The customers who have complaints actually worth listening to will probably give it to you directly rather than Tweeting it.

The people who are unhappy are often the type of people who shop by price and have 0 brand loyalty. And no matter what you do it is never enough. About two days after opening up our membership site (nearly 2 years ago) I got a phone call while on the road by someone who couldn't figure out how to log in. I pointed out where it was. That wasn't good enough. I spent about 6 hours digging through the PHP to try to make the login even more intuitive for them. The next day they asked for a refund because I didn't provide 24/7 phone support. The login wasn't the problem. It was just a handy excuse. The problem was that they were cheap and nothing was going to be good enough for them. And just to put a bit more salt in the wounds, about a week later someone else complained about how the login was changed. FAIL! :D

Since then we have increased our price 200% (as we have added more tools, more staff, and the value of my time keeps going up every day) and we still have many people who are happy as longterm customers at a higher price point. In fact when some people accidentally cancel their account I can get 3 to 5 emails in an 8 hour period when I sleep because they miss the site that much.

But there is the opposite end of the spectrum as well: potential "customers" who demand a free trial, beg for aggressive discounts, or have 50 "one more question" questions before joining. They probably are not sold enough on the solution to be worth the effort of selling to. No matter what you offer them its probably not going to be enough. Their lack of internal value is reflected into their perception of the works of others, and if they buy from you without being sold on you they will probably ask for a refund, or find a way to be abusive to make you want to can them.

In our support suite many non-paying non-customers mark their messages as critical. Whereas the people who are paying customers use a less extreme level, like normal. The levels that people can select are almost a filtering mechanism. Have you spent $0 with us & you mark your issue as critical & you use caps lock & rude slurs? Shift-delete.

I didn't intentionally plan it, but our old programmer even built another filter into our business model. The people who join and then cancel right away get locked out right away. We then send them refunds, but this level of filtering filters out a major type of potentially abusive customer. The type who generally won't read or research but will ask 5 different questions 8 different ways each every single day until they have annoyed your members so much that you are forced to boot them to lessen the noise. The person who makes over 100 posts in their first 2 days isn't taking any time to read or listen or implement, so they would just harm your community without getting any value out of it.

This leads to my theory of filtering: if a person needs lots of support becoming a customer (or before they become a customer) then they probably are not going to become a good customer. And if you take them on as a customer (or spend any money pushing in that direction) you will probably lose money.

The person who sends me an enraged email about "why should I install Firefox" just wasted 5 seconds of my life & will never spend a penny with me. And that is fine.

Many of the best companies aim to be polarizing. They pick their spots and define what they do, and work hard to make that market segment happy. That is how Steve Jobs views flash, and it is how Marc Andreessen likes to invest.

Find out what people smarter than you are doing and find a way to incorporate those themes into your business strategy. The smaller you are the more polarizing you can be, because you don't have to create something that feeds thousands of employees to be profitable.

You could spend every day trying to make any unhappy person happy with your offering.

... OR ...

What if you took those same resources that were spent trying to appease the angry and spent them on making those who are happy that much happier? Does the free upgrade go further when it is given to an enraged steroid addicted customer, or does it go further when given to someone who has stayed with your hotel multiple times in the past? Where are they on this circle?

The concept to think about here is that if someone is already fairly loyal it doesn't take much more marketing or attention to make them *super* loyal. And then they spread the word.

There is a concept of fairness which is preached in school, but you should overweight your business toward your best customers.

The person who has been a paying subscriber for years is worth thousands to tens of thousands of Dollars to our future business interests.

And for clarity purposes, I agree with Chris that their can be great value in being a guide & helping people out. But angry high-maintenance people are rarely where sustainable profit margins come from (unless, of course, you are a divorce lawyer OR a PR firm who gets paid to give hotels bad advice).

From the above WSJ article's comment section

It wasn't enough. It never is. :D

An Interview with Johns Wu

Internet success stories rarely get any sexier than the story of Johns Wu. 

In 2006, while still an undergraduate research student in neuroscience, Johns started a Wordpress blog he named Bankaholic.com. A one-man-show, Johns used an SEO/SEM-focused approach to build traffic and revenue. Just over 3 years later, he sold Bankaholic to BankRate for a reported $14.9 Million.

He was 22 years old.

Recently, we caught-up with Johns. This proved to be a bit of a challenge, as he is currently enjoying the ability to travel all over the world. He graciously stopped just long enough to answer some questions about his success and what it takes to create a multi-million dollar website these days.

So what leads a guy like you from studying neuroscience into SEO?

My original inspiration was the story of Anand Lal Shimpi and Anandtech.com. When I was in middle school, I saw a news report about how he became a media-tycoon when he was only in high school. Since then, I have always been fascinated by online media. In college, I was originally on track go to medical school, but the deeper I got into science, the more I realized that I hated it! I explored some computer and business classes on the side, and in 2005, I started a stock blog called thebulltrader.com. I had a good time blogging and running the site, and a year later, in 2006, I started Bankaholic. After getting my first AdSense check of $50+, I became interested in getting more traffic, and the rest is history! ;)

Online affiliates tend to do really well in areas that are either directly or closely tied to finance. Do you evaluate the proximity to finance when considering an area or niche where you'd like to build?

Not at all. The Internet is huge and there are tons great niches out there.

Is topical expertise required to compete in a valuable market?

It definitely helps, but it isn't 100% required.

What are specific things you feel might substitute for topical expertise?

Being Internet savvy definitely helps. More specifically, understanding how SEO and SEM works will grow your business and give you a shot even if competitors have more topical expertise.

Do you like to operate in markets where there is passionate competition, or markets where people tend to approach it with less passion?

I always steer clear of competitive niches. Always. There is so much money out there that you shouldn't be wasting your time chasing over-saturated/impossible niches like ringtones and online poker.

Let's talk a bit about how you grew Bankaholic. What was your original vision for the site?

In 2006, it was the peak of the financial bubble. Banks were very aggressive with marketing so they were paying easy sign-up bonuses to new customers. Any average Joe with a social security number could make a couple hundred bucks a month by taking advantage of these deals.

My goal was to aggregate the best deals and create a SlickDeals/Fatwallet kind of site that was exclusively about banking. My vision was to create an online cult of "bankaholics" that would come to my site every day for the latest deals.

Great domain name, BTW. What led you to create a uniquely brand-focused name opposed to using a direct-match or keyword-rich domain within the finance sector?

Picking a domain name was incredibly frustrating because (as you can imagine) all the good names were taken. I remember the day I thought of the word "Bankaholic" very clearly. I was in the neuroscience lab waiting for one of my lab experiments to finish, so I went on the computer and used NameBoy.com to brainstorm some names. I saw the word "Bankaholic" and I thought hey, this sounds alright...so then I quickly registered it on GoDaddy.

Given the size of the sale {$14.9 Million}, it would seem you were quite ambitious and narrowly focused to build that much market leverage so quickly. Were you always focused on reaching that level of success?

Yes, after I graduated college, Bankaholic became my life. I knew that I was sitting on a goldmine and that it was my one shot in life to make it big, so I took it very seriously and spent every free moment obsessing over how to grow and improve my business.

Did you employ any offline strategies to help drive your success?

The only offline strategy I ever attempted was printing Bankaholic t-shirts and giving them out. Since the ROI was so dismal, I never did this again!!

Did you have any specific priorities that you feel contributed in a meaningful way to your success?

Measure and optimize. You can't optimize what you don't measure.

Are you still writing regularly on the site? (One of the current authors in particular seems to share your love affair with culinary treats).

LOL! I continued writing for a few months after the sale, but after the transition, Bankrate has totally taken over.

The social media scene was emerging as Bankaholic grew, but is a much stronger presence today. Has this changed the way you are approaching new ideas or projects?

I'll be honest. I HATE social media. I admit, it can be powerful, but it is so unpredictable and uncontrollable that it is more of an afterthought for my online strategy. I personally would much rather spend my time on SEO since it is predictable, measurable, and (most importantly) 100% profitable.

However, Twitter and Facebook are valuable tools because they allow you to reach a fresh demographic that hasn't yet descended into the 'conversion funnel'... So in that respect, yes it is important to have a level of fluency in SMM depending on your niche and business model.

If new to a niche with limited resources, how does someone tackle bigger, more challenging markets?

Experience is everything. Learn from your mistakes, and don't be afraid to fail your way to the top.

Do you feel a success story like yours is something that anyone can do, or what makes the difference?

Not just anyone can do it, but there are many who can. To be a successful affiliate marketer, you need to be a jack of all trades. You gotta be able juggle and excel at many disciplines: creativity, design, business, project management.

You can only pick one: which is the most valuable asset for a young webmaster starting a competitive website (with all things being magically equal):

  • capital to invest,
  • passion for the subject matter,
  • expertise on the subject matter,
  • SEO savvy,
  • technical/graphic/content development skills

Definitely expertise. If you are a true authority in your niche and you create remarkable content, your website will naturally attract links, advertisers, and business development opportunities.

How has the money affected the way you're approaching new business interests?

I'm very active in domaining because it is a great place to put my money. I think premium domain names are great for my situation. Since I understand the Internet better than anything else, I know what valuations are attractive. Buying domains also leaves me the option to get into more web development in the future.

You've created an amazing "Rags to Riches" story with this entire effort. How does this affect the way you're viewing future challenges?

Unfortunately, I have a lot less motivation these days. I am a lot less 'hungry' for success but it's okay... eventually I will get back into my Internet marketing groove.

So what's next for Johns Wu?

These days, I've just been traveling and relaxing. Once I get the travel bug out of my system, there is no doubt that I will continue chugging away at domain acquisitions and development.

Thanks for taking a moment to talk, Johns - safe travels, and here's to your continued success!

Marty Lamers owns a Freelance SEO Copywriting company you can visit at Articulayers.Com. Since 2001, Articulayers has been fixing the world, one word at a time.

SEO Competitive Intelligence Strategy

It's bad enough having to compete with Google's engineers.

But to win the search game, you need to out-compete your competition, too!

Back in the dark, distant past - around the turn of the century - there was an "us" vs "them" mentality in search. "Us" being webmasters, and "them" being search engines.

Back then, in those simple times, in-the-know webmasters gathered in dark forums to discuss and share cunning strategies to crack the algorithms. There was a time when the postings of the secretive GoogleGuy were a big deal. Imagine - a search engine rep actually fraternizing with the enemy! How strange was that!

Times have changed.

These days, webmasters are more likely to work with the search engines, in the form of Adwords and Adsense. GoogleGuy is now the non-mysterious Matt Cutts, who helpfully announces indexing changes before they happen, even if he is still rather vague on detail.

Unfortunately, the collective "us" - webmasters - do not share the same level of camaraderie we once did. As search marketing is now above radar, competition levels have become fierce.

It's more dog eat dog.

Winning The Search War Against Your Competitors

Once we've figured out what Google wants, or we think we know what Google wants, we then need to out-compete everyone else who thinks they've figured it out, too.

Typically, webmasters reverse-engineer competing sites. Who is linking to them? What pages are linked? How old are the links? What keyword terms are they targeting? What are their most popular keywords? What Adwords are they running? What meta keyword tags are they using"? ;)

Good questions - apart from the last one, obviously - and a legitimate strategy for emulating high ranking sites. Tools like SEMRush provide a valuable insight into what our competitors are doing. BTW: Not pimping, I've been using SEMRush a lot recently, and I think it's a great tool :)

However, there's more to it. We also need to look at some other, non-technical factors that reveal something much more lucrative and interesting.

Competitive Analysis

Competitive intelligence is an ongoing, systematic analysis of our competitors.

The goal of a competitor analysis is to develop a profile of the nature of strategy changes each competitor might make, each competitor's possible response to the range of likely strategic moves other firms could make, and each competitor's likely reaction to industry changes and environmental shifts that might take place. Competitive intelligence should have a single-minded objective -- to develop the strategies and tactics necessary to transfer market share profitably and consistently from specific competitors to the company.

The essential question underlying competitive analysis is this: "why do some web businesses do a lot better than others?"

In terms of search, we not only need to look at the technical aspects of the sites positioned above us, but we also need to analyse the markets in which they exist, what our competitors goals are, their pricing and products, and even obscure details, such as who they are hiring and firing, and why.

As you can see, it's not just about getting ranked higher for a certain keyword term. It's about getting ranked higher in terms of overall business performance. It's about seeing what market they capture, and where that market is heading in the future. Once you've figured out that, you might be able to discover new keyword streams that your competitors have missed, and may never think of.

Ok, so how?

How To Undertake Competitive Analysis

It would be nice if you could call up your competitors and ask them exactly what they're doing, and where they are heading. But we all know that's not going to happen.

We have to do a little investigative digging.

The problem is we don't want to do too much digging, as it is time consuming and can be expensive. Thankfully, a lot of the answers we need are sitting right in front of us.

Ask these questions:

  • What is the nature of competition?
  • Where does the competitor compete?
  • Who does the competitor compete against?
  • How does the competitor compete?

The nature of the competition is the overall market, and market forces. Take a look at Google Trends, trendwatching sites and other market research tools to figure out where their market is now, and where it heading. Does the market require significant resources? Why are these competitors in these markets? What related markets have they avoided, and why?

A concrete example. A few years ago, many SEOs competed as service agencies. Market trends showed that a lot of SEO was moving in-house, particularly at the top end. As SEO moved in-house, demand rose for training. A lot of SEOs are now engaged in training.

Ask yourself where your market will be in five years time.

Where does the competitor compete?For example, are they limited to a certain geography? Culture? Language? Do they have an offline presence?

Who does the competitor compete against? Make a list of the, say, top ten competitors in a niche. Compare and contrast their approaches and offerings. Compare their use of language and their relative place in the market. Who is entrenched? Who is up-and-coming? Who has the most market share, and why? Can you grab some of this share?

How does the competitor compete. What are the specifics of the products and services they are offering. Lower prices? High service levels? Do they provide information that can't be obtained elsewhere? Do they have longevity? Money, staff and resources? Are they building brand?

Whilst we could go into great depth, the value of even a basic competitive analysis is considerable.

By doing so, we can adjust our own offering, like altering price and service levels or by targeting a specific niche. We may slice a new niche in order to avoid direct competition with a highly resourced, entrenched market leader. We might make a list of all the things we need to do to match and overtake that fast rising new challenger. We then position against keywords aligned with the competitive realities we face.

There's much more to search competition that algo watching, keywords and links. And many more diverse ways to compete, too :)

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