SEO: Where Is It Going?

SEO came about soon after the advent of the web crawler. The commercial imperative was obvious - where there was web traffic, there was money to be made. Positioning a page first in the engines was pretty much a licence to print money.

Still is, of course.

Throughout the history of search and SEO, the predominant metaphor of the web has been one borrowed partly from publishing - the page - and partly from computer science - the domain. A domain contains pages. A domain is a silo. A domain has clear borders.

The Search Metaphor

Search forces quite a different metaphor on the web.

Search is a connector between a person and a page. Search subverts the domain structure because the visitor can dive in at the page level. In this respect, all pages become a part of the much bigger silo. In 2009, that silo is Google.

Search also strives to be the ultimate answer engine - the mind of God. Got a question? Google it. Google will provide the answers.

But search is not quite there yet. Search still returns pages - the user still digs through the page to find the answer.

But for how long?

The Slow Unraveling Of The Page Unit

Consider social media. Is a page the basic unit of Twitter? No, it's the sentence. How about Youtube? The video. Social networks? The person. All can be extracted, re-purposed and dis-intermediated without losing meaning.

Consider the semantic web:

Humans are capable of using the Web to carry out tasks such as finding the Finnish word for "monkey", reserving a library book, and searching for a low price for a DVD. However, acomputer cannot accomplish the same tasks without human direction because web pages are designed to be read by people, not machines. The semantic web is a vision of information that is understandable by computers, so that they can perform more of the tedious work involved in finding, sharing, and combining information on the web

What happens when the machine "understands" the query enough to provide a direct answer to a question, as opposed to returning a list of pages?

Black Clouds On The Content Producer Horizon, Or Opportunity?

In a recent Techcrunch interview, Eric Schmidt said something rather telling:

So I don't know how to characterize the next 10 years except to say that we'll get to the point - the long-term goal is to be able to give you one answer, which is exactly the right answer over time.

Perhaps he was quoted out of context, but that strikes me as an absurd thing to say. As if there is ever one "right" answer. Well, I guess there is if you live in some Orwellian nightmare.

More importantly, if this is where Google intend to be in ten years time, then where does this leave content producers? If Google provides "the answer", why would anyone click-thru and visit a page? Conversely, why would anyone let Google crawl their content if Google's aim is to disintermediate the producer from their content? Johnon had an excellent post on this topic.

Recently, Google released rich snippets, a feature whereby you markup you data to suit Google's display criteria.

Rich Snippets give users convenient summary information about their search results at a glance.

If the answer is "rich" enough, I guess the user doesn't even need to visit your page. Perhaps the user will get distracted by the Adwords listings, instead ;)

If Google aims to extract information and keep the visitor on Google, rather than just acting as a conduit between visitor and page, then this does not bode well for content producers.

This brings up the burning "Newspaper vs Google" argument. "How", the newspapers argue, "can we make money if Google undermines our revenue model? Ultimately, this is a question all content producers must face. Just ask those in the music industry.

Seemingly in response, Google is planning to roll out micropayments in the next year:

Google is planning to roll out a system of micropayments within the next year and hopes that newspapers will use it as they look for new ways to charge users for their content.

The question is, will micropayments and web advertising be enough to pay the bills, especially when it comes to expensive, high-risk media production, such as television and movies:

Grade’s criticisms were echoed in October by C4 chief executive Andy Duncan, who said Google had failed to invest in UK content creation. “Google takes more ad revenue out of the UK than ITV makes and it isn’t regulated. It isn’t fair [that] it’s not reinvesting that back into content and independent film production companies in the UK,” said Duncan.

Content producers are posting losses, whilst Google continues to post massive profits. What happens if content isn't worth producing anymore? What happens when revenue falls below the cost of production? Or perhaps content will still be economic, but only if production quality is sacrificed? Is it really just a case of fat media producers cutting bloated production costs?

What is Google's long term strategy as far as content producers are concerned? Besides PR fluffery, they never really say.

It's Not All Bleak

Of course, if content producers really did get disintermediated to the point where content production wasn't worth doing, Google may well collapse soon after. What would there be left to search? Wikipedia?

Where would the "answers" come from? Who would fund "answer provision"? Sufficient income must flow to the content producers, but the question still remains "how"?

And I don't really think the page is going away. The page has served humans well for thousands of years as a container of information. But if the information on pages can be aggregated in such a way that users don't need to visit the source page, where does this leave content producers? Where does this leave SEOs?

In 2009, SEO plays fall into three distinct categories.

  • Agency model: people offer services to others for a fee.
  • Affiliate model: people gather traffic and funnel it somewhere else for a performance fee.
  • Content model: people generate content and make money off advertising.

The last model is, I'm guessing, is one a lot of SEOs will pursue. Many do so now.

Check this out:

Demand Media operates based on a simple formula for success on the Web: create a ton of niche, mostly uninspired content targeted to search engines, then make it viral through social software. Demand Media has been heavily funded to carry out that mission, to the tune of $355 million. So yes, brute force - quantity of content + money/power - works more often than we'd like to think on the Web.

The aggregator wields most of the power in this relationship, unless the publisher can lock in an audience who will by-pass the aggregator.

Is Dis-intermediation Over-Rated?

On the flip-side, John Battelle argued a few years back that search dis-intermediation is overrated.

Those who fear disintermediation should in fact be afraid of irrelevance -- disintermediation is just another way of saying that you've become irrelevant to your customers. It doesn't mean there isn't a customer, or middlemen of some sort who service that customer, or that the core proposition of your business has disappeared. It just means you're in a bit of a rut, and as much as you might pine for the past, it's probably time to rethink things before it's too late.

He reasons that writers can go outside the traditional silos:

And what of the role of publisher or content creator? Increasingly, those who have the ability to create great media can get pretty far without attaching themselves to the traditional indentured servitude of a publisher, label or network. Writers, for example, are finding their own voices outside the strictures of magazines and newspaper publishers. Blogs like Boing Boing, Daily Kos and Cool Tools are drawing millions of readers each month, and their overhead is the cost of a high-speed Internet line.

However, what they're actually doing is jumping out of one silo and into another. Google is the master silo in this scenario.

So, what do you think? what is the role of SEO in the future? Will it be more about making connections, and a less about making pages? Will the page itself be subverted? Have Google gone moved beyond the idea of "organizing the world's information"?

When is the Best Time to Hire an SEO Professional?

If you have the budget resources the best time to hire an SEO is before you start your website projects. However, most people new to the web lack the cashflow needed to buy quality SEO services. Further if they don't understand the complexities of the market and get bombarded with cheap (and low to no value) SEO package offers from web hosts, registrars, and email spammers they may think SEO should be cheap and easy, causing them to buy garbage - and become distrusting of the concept of SEO.

Your best bet (if you are new to the SEO field) is to do as many of the following as are practical

  • start a test Google AdWords campaign (and use the conversion feedback from this to help inform your SEO strategy)
  • if you are in a competitive AdWords market you might also want to watch the Google AdWords videos, and read books by guys like Andrew Goodman and Perry Marshall
  • buy 2 or 3 SEO books from Amazon.com (and see where some of the general tips and ideas overlap...mark up the books and take notes)
  • join a high caliber SEO membership site
  • read 5 or 10 of the top SEO blogs for a minimum of a month or 2
  • go to an SEO conference or 2

...and then from that collection of knowledge you can start building a bit of a strategy, some momentum, and some cash flow. That way if/when you do hire an SEO, you are the type of client who is worth having (ie: one that will receive a positive ROI, one who knows the basics and will make sure suggestions are implemented, and one who is willing to allocate significant resources in the search game).

If you are a small or local player in a fairly non-competitive non-saturated niche (a clue here might be if your AdWords campaign is instantly profitable then the market probably is not too saturated) you might be able to do well hiring an affordable SEO right out of the gate, but when you get down into the lower price bucket for services there is a market for lemons effect and over 99% of the offers are scams.

In spite of claims to the contrary, you can do SEO and SEM yourself, especially if the market is not saturated. More and more companies SEO is getting baked right into their content process and company culture - many companies that hire third party consultants also have an in house SEO team. Search is the highway new customers drive on for the next hundred years. SEO will be taught as a fundamental piece of marketing strategy in the next decade.

The big limitations to doing SEO yourself are if you don't understand some of the risks vs rewards and use a singularly focused SEO strategy then those types of sites can have wildly fluctuating rankings and higher than needed risk levels. The more supports you have the more solid and stable your search rankings will be, but if you just find 1 loophole that works and exploit it aggressively then when it stops working those types of sites can come crashing down.

This is where having an SEO consultant on retainer makes a lot of sense. It prevents some of the oh crap, I just destroyed my business moments that Google shows business owners every day. Think of an SEO consultant on retainer as an insurance policy on your business.

In the last couple days I have had multiple people contact me about their site after it got whacked in Google. That is sorta the wrong time to contact an SEO...it is far better to do so while you still have growth, momentum, and cashflow. An ounce of prevention is worth a pound of cure.

If your site is banned or filtered then sometimes you have to take a step back before moving forward. A site that was banned for buying too many links will be looked at and evaluated more closely upon review by Google - such reviews take some gray hat opportunities off the table... a significant lasting cost in a competitive set of search results where business is often won or loss on small differences in strategy.

And in many cases where a site was penalized for being too aggressive there are similar techniques that can be used with a far lower risk profile. Hiring an SEO who can help you manage risk and growth while you have momentum (or during the slightest pull back) makes a lot of sense. It is leveraging expertise to help build a stronger foundation and a deeper competitive moat.

But asking them for help after your site is banned is much harder because for them to help you get unbanned they might have to try to ask for some favors or try to leverage their feedback channels they earned with the search engines. If they just keep making requests to get penalties removed then that makes them look pretty spammy, kills those feedback channels, and in some egregious cases penalties can take years to be lifted.

The goal of an SEO is not just to rank your site, but to keep it ranked as the structure of the web changes, Google's business goals change, and your competitive landscape changes. This often means working the gray areas to get a site built up, and then pulling back on the sketchier stuff as momentum is built and solid supports take over the role of pushing up rankings.

Managing risk is probably the singular most undervalued aspect of SEO consulting. Largely because the cost does not appear until it does - and by then it is already too late.

Corporate SEO Services

You would either have to be new to the industry or under a rock to not notice how the SEO industry has become more corporate over the past 3 or 4 years. The trend has been slow and gradual with many small steps, but I thought it would be a good idea to try to put the pieces together. What started off as a 5 minute project took a couple hours. I hope you like it! If you are a creative thinker you should be able to get a number of actionable ideas by thinking about how such trends will change your market.

Warning: this image is big! ~ 225KB

http://www.seobook.com/images/corporate-seo.gif

This is sorta a high level document which looks at many existing and emerging trends and how they combine to change the landscape. A lot of small businesses and small online publishers are feeling the following trend

In a recent comment on a blog post about link buying Google's Matt Cutts stated:

Personally, I believe the reason that so many people come to Google is that for the last decade, we’ve worked really hard to protect our users and return the best search results. When other search engines showed pop-up ads, Google didn’t. When every other major search engine offered pay-for-inclusion into their search results, Google didn’t. And Google has taken strong action to protect our users from spam, malware, and poor-quality sites. I think part of Google’s lead (and brand loyalty) in the search space is because we’ve taken strong action to protect our users.

Sure I think they try to protect people (and do a good job), but I never really see the bits that are inaccessible, so I don't know what I am missing. In time I do wonder if you could have too much media consolidation due to favorable reviews of "too big to fail" brand companies while smaller competitors are flushed away for using similar marketing techniques.

To the best of my ability in the above linked image I tried to explain why SEO outing is bad in how it influences the entire search engine optimization, search, and online media ecosystems. If I had to shorten it down to 3 points, those would be...

  1. Outing limits media diversity. Media plurality is important, but it is something that Eric Schmidt doesn't get. And it is often the independent types who have the editorial freedom that enables them to highlight major fraud. Some media channels are so driven by advertiser interests that they fire employees who dare to mention risks in advertiser's products. (And I would rather pay a bit more to not drink poisoned milk!)
  2. Outing harms small businesses while corporatizing the web. Historically most economic innovation has come from smaller companies. Microsoft was once a small company. And so was Google. ;)
  3. Outing drives down the earning potentials of many SEOs and will eventually force many independent SEOs into low paying in-house SEO jobs. Most societies operate on a debt-based money system where debt slavery controls many decisions. The ability to be self-employed, do what your passionate about, and operate outside of that system should be cherished by anyone lucky enough to not have a boss.

Google's Eric Schmidt claims that "brands are how you sort out the cesspool." Brands take money to build, but they are bought and sold just like anything else - only they require more capital and/or more insider connections to buy.

You know those damn bankers who bankrupted their own companies through the use of leverage and predatory lending? And then the same people lied, cheated, and looted trillions of Dollars from United States tax payers to save their companies (and pay their bonuses)?

Well they are not only leading media advertisers, but they now own a HUGE chunk of the traditional media sphere:

One wonders why Goldman and JPM were so eager to provide "rescue" financings to virtually the entire distressed media space: both companies knew too well that sooner or later they would end up with full equity control over essentially the most coveted industry: thousands of TV stations, radio channels, newspaper and magazines. If you thought the media propaganda was unbearable now, just wait.

Link Buying: the Good, the Bad, & the Ugly

Online Marketing is Complex

One thing I believe about online marketing (and SEO in particular) is that the more rigid the advice the lower its value, particularly when it is cast out to a general audience. Why? Online marketing incorporates psychology, sociology, game theory, etc. The human mind is complex. Understanding how many of them work together (or against each other) is even more complex.

There are hundreds or thousands of ways to win a market. Each idea is a tool that has potential risks and potential rewards on a per market and per project basis.

Link Building in 2003

With link buying people get emotional and just consider it out of the question. Back when I got started as an SEO, many SEOs were considered spammers simply because they even did any link building at all. Why?

  • It was amazingly effective.
  • It was time consuming and expensive work that many established SEOs did not want to do for their clients.

Since then the web graph has got amazingly polluted and paid links are treated similarly to how link building efforts were treated back then.

Few SEO Tips Are Universal

Rand recently stated that he no longer recommends paid links. If you philosophically didn't believe in buying links then why would you spend $1,000,000+ building a web graph of link data? What good is researching all the link data if you take link buying off the table as one of the options? Most of the competing links that you can replicate will require some level of payment.

Sure link buying does not make sense for everyone, but it makes a lot of sense for some businesses. And if you don't buy links then there is little purpose to link research tools, IMHO.

The potential risks & ROI in link buying are not the same for everyone. Saying link buying is off the table is like saying keyword research is off the table. Sure if you are TechCrunch you don't need to do keyword research to succeed, but it still wouldn't hurt to consider it.

Waiting in Obscurity is a Real Cost

Let's say that you are starting a brand new project and have 0 market momentum - a position almost every successful webmaster starts from at some point in time. I don't think there is risk in buying a few links because you have to start from somewhere. Most of the people who launched new websites in the past year will be out of it by the end of next year. The biggest online risk for new webmasters is perpetual obscurity.

While being obscure you are not...

  • building brand and momentum
  • building cashflow
  • building customer loyalty
  • optimizing conversion flows
  • catching up with established competitors who are re-investing into growing their businesses

One way or another you have to start doing some push marketing to build momentum. Eventually pull marketing can drag you along, but you don't benefit from it until AFTER you have built some awareness and market momentum.

At Pubcon 2 years ago Stephan Spencer mentioned you might get penalized 5 years from now for links you bought today. I said that I got started in SEO less than 5 years ago and if I didn't buy any links back then I wouldn't be speaking into the microphone right now. I also said that if you get penalized 5 years later for what you did back then well then you didn't build much of a business.

Brands

But for established brands doing limited link buying can still make a lot of sense. Since "brands are how you sort out the cesspool" there is much less risk in a brand buying a few links.

Some SEO consultants who are trying to appear like the safe option (to pull in corporate consulting clients) think that saying they don't recommend link buying makes them look wholesome, but any SEO who has worked for fortune 500s knows that once you get in the board room all that matters is efficacy.

Having wrote that, I can think of numerous instances where we advised clients to approach their overall strategy in a way that was less spammy and less risky than what they were already doing and what they were proposing.

Deep Links

If you don't buy links it is hard to influence the anchor text, particularly if you are doing SEO at the enterprise level AND want to get deep links into commercially oriented pages. Companies spend billions of dollars a year on organic SEO because ranking a few spots higher in Google can be worth a lot of money. If you know a #5 ranking is worth x, then there is a good chance that a #1 ranking can be worth something like 8x.

A Tool is a Tool

Am I advocating that everyone go out and buy links? Not at all. I am just saying that it does not make sense to categorically take it off the table. Link buying is a tool which has various value levels depending what market you are in and how your company is positioned.

Paid links can be a stepping stone or part of your strategy, but rarely should they be your entire strategy. On some client projects we have done we have suggested shifting away from doing as much link buying or reciprocal linking because we felt that the strategy needed to be more holistic and well rounded. It worked, and there was no reason to stop doing what already worked, but going forward it would make sense to leverage some of the brand assets and audience to build other types of links.

Where Link Buying Can Lead You Astray

If link buying is your only SEO strategy it is hard to stay competitive long-term because

  • if your link profile is nothing but paid links that is risky
  • if your link profile is nothing but paid links that is easy for competitors to clone
  • if you are in a big money market some competitors will have other assets to leverage against you in addition

Doing a bit of link buying way back when helped get me some exposure, but it didn't produce the explosive ROI that we got from doing things like going to conferences, networking with people, and launching a bunch of popular SEO tools. Link buying can be considered a support, but the most successful businesses typically have numerous supports.

Creative Link Buying

Did you see that Mint.com was recently bought by Intuit for $170 million? It seems they used a creative way to buy links:

To build demand, we started asking for email addresses for our alpha 9 months in advance of launch. Then when we had too many people sign up, we asked people to put a little badge that said “I want Mint” on their blogs to get priority access. We got free advertising and 600 link backs which raised our SEO juice.

See how they required links as payment for priority access? Well I would say they got a nice return on those link buys. And so would they. And now that they have so much momentum they can't and won't be penalized for buying links. ;)

Where Link Buying Can Make Sense?

  • if you are new and have nothing to lose
  • if your brand & link profile are so big that buying a few links won't stick out
  • in markets where the competitive barrier set by all the top ranked competitors includes an array of link buying (not saying you should match them link for link, but it might make sense to cherry pick a few of the best opportunities)
  • getting a few deep links with targeted anchor text
  • in markets where links are valuable and there are few organic links

A Word From Bing

One thing SEOs should love about Bing is that Bing's search team gives practical advice and does not try to scare you:

The truth is that getting bad links happens to great sites. We know this happens. In fact, we’ve never seen a decently ranking site that doesn’t have a few (or more) bad inbound links. We take the approach that bad inbound links won’t adversely affect your site ranking unless most or all of your inbound links are from bad sites.

Consider this as well: perhaps the reputation of the site linking to you is bad, but the content on the actual linking page is relevant to the page on your site. This could possibly be a decent inbound link—not as good as one from an authority site, but it might give you a little link goodness.

When it comes to inbound links, just remember this: zero inbound links are better than all bad inbound links. But if you have many good, relevant inbound links from respected sites, a few bad links won’t count against you (but they won’t help you, either).

So in general they look at the overall profile of the business when making editorial decisions and are not likely to penalize you for having a couple bad links. They not only won't penalize you for having a few bad links, but even expect them to be there.

Summary

I don't buy all that many links for SEO purposes. But I don't think it is a good perspective for most webmasters to remove the option from their tool set. Had I not bought links back in 2003 and 2004 I am not sure if I would have as big of an audience as I do today.

If you are just starting out and have limited capital you might want to approach link buying creatively (like Mint did), but if SEO is core to your business strategy you shouldn't be afraid to buy a few links.

Broken Reward Circuitry: Money vs Happiness

Unbelievable Stupidity

When I was in the military they would run these stupid drill where they would try to create as much stress and chaos as possible in a short burst of time, find someone who makes an error, and chastise them for it. That killed morale. So to make up for declining morale they decided to run more frequent test and drills. And thus being an enlisted nuclear power sailor in the US Navy is a horrible life that I wish on nobody.

At one point in time I was on watch when a new kid made a mistake during maintenance that killed all electrical power on the submarine. Later we had a discovery meeting where we found out what went wrong. Having been 5 feet from the maintenance, I knew that the kid's boss came over and told him "remember to trip close trip the breaker when maintenance is done." The kid listened to that wonderful tip and turned the turbine generator into a turbine motor.

But since the new kid was dumb enough to listen to the bad advice he took all the shelling and blame. It was as simple as that, but even the captain of the boat (along with everyone in the chain of command - including the guy who gave the stupid tip) were together in a huge group insult fest where they tried to one up each other insulting the new guy. It lasted for like an hour and a half and the lines were so bad that things like do you realize how stupid you are? were said to that kid. I thought that if the meeting lasted another 5 minutes they were going to start chastising him with questions like do you realize how fat you are?

It got so bad that the electricians had to set up a work area to change a light bulb, making each bulb about a half hour process. But since I wasn't an electrician (I was in reactor controls) I could go ahead and change the light bulbs in about 30 seconds each. But if I wasn't helpful to the next division what took me a half hour would have took them about a whole day. The solution to every problem is closer scrutiny, more testing, and more baby sitting.

On the same boat the leaders had us take out the flooring railing in the engine room to have them repainted. This flooring railing was never meant to come off and would not fit out of the boat's escape hatch. BUT someone was stupid and said it must be done. And so there we were using a hacksaw to chop up the floor supports (ruining their structural integrity and making the submarine far noisier and less safe in the process) so the floor supports could be freshly painted and look slightly better.

If you want to see a horribly run organization full of miserable people put them in a confined high stress environment where no matter how shitty they make someone else's life, they get no market feedback or pain for coming up with an endless array of stupid ideas.

The military is a rat testing lab.

You can learn a lot about yourself, what drives you, how to succeed, and how to fail by putting yourself through such a miserable experience...though I would not recommend it to anyone smart enough to be reading this blog right now! ;)

What Drives You?

I respond well to positive feedback and I simply shut down from negative feedback. One of the hardest things I have struggled with is someone I know giving me the wrong kinds of motivation. XYZ knows less than you, works less, sells far inferior products, and makes more so you must be screwing up.

This is true of a lot of direct marketer types who don't give a crap about the success of their customers but are willing to hype anything and everything they can put their name on - even if they make false promises and don't know what they are selling. But if you care about the quality of your product, use what you make, and actually provide real customer service you can't compete on hype without pulling in a lot of people who were not worth having as customers.

In the short run you can't compete with the top line numbers (especially the inflated ones before the affiliate commissions and the huge number of refunds & chargebacks associated with people realizing they bought into a scam), but after a decade of solid effort you can compete with the scammers on earnings (plus many of them get flushed out of the market, constantly replaced by a new breed). But are your goals short term or long term? What are your goals? What drives you? Is it money?

Money in Context

Money is just a tool for exchange. If it is your sole motivation you will end up losing motivation quickly. And as long as you are not printing the money supply and do not have lobbyists working CONgress for funds, it will almost universally hold true that someone dumber than you who doesn't work near as hard will earn more money. But it is not a relevant mindset that will lead to anything productive with your life. What good is money if chasing it makes you miserable?

After reaching a certain level of success an additional dollar of income doesn't provide much additional marginal utility and a singular focus on it can harm other aspects of your life. Money can buy a bit of happiness, but it can't buy a lot of it. And we often spend it incorrectly.

The problem isn’t money, it’s us. For deep-seated psychological reasons, when it comes to spending money, we tend to value goods over experiences, ourselves over others, things over people. When it comes to happiness, none of these decisions are right: The spending that make us happy, it turns out, is often spending where the money vanishes and leaves something ineffable in its place.

Measuring Success

In time smart efforts (combined with a bit of luck and a lot of learning) produce results. So long as you are honest even dumb or failed efforts produce wisdom. But you can't be #1 at everything.

You have to decide what you view as success and stick to comparing yourself against only yourself, or else you will get burned out, singularly focusing on an arbitrary goal while your health and happiness erode. Until the past week I basically had chronic back pain which is just now lifted and I feel like a kid again. That was only made possible because I decided to temporarily close off the site to new members to make enough time for exercise. And it is already working. Paying customers are still getting great customer service, but for now I am not stuck doing as much admin stuff as new members cycle in and out of the site. That leaves a little bit of time for sanity, which I hear is important. ;)

Giving Praise

  • If a person who is gifted but lazy is praised they will just become more lazy and arrogant and worthless, feeling they deserve the world even if they did nothing to earn it.
  • If a person is doing their best and you keep telling them it is never good enough (like the Navy ORSE testing regime) you are just going to make them miserable, shut them down, beat them into submission, and kill their happiness. Such policies kill motivation and drive away talent.

You shouldn't praise the results, but praise the right kind of effort:

Those who had been praised for their effort significantly improved on their first score—by about 30 percent. Those who’d been told they were smart did worse than they had at the very beginning—by about 20 percent.

Social Clustering

Much like you are what you eat, many of your good and bad traits are driven by (and drive) the people who are in close proximity:

When a Framingham resident became obese, his or her friends were 57 percent more likely to become obese, too. Even more astonishing to Christakis and Fowler was the fact that the effect didn’t stop there. In fact, it appeared to skip links. A Framingham resident was roughly 20 percent more likely to become obese if the friend of a friend became obese — even if the connecting friend didn’t put on a single pound. Indeed, a person’s risk of obesity went up about 10 percent even if a friend of a friend of a friend gained weight.

So if you are living an unbalanced lifestyle and sacrifice other aspects of your life for a singular (and often short-sighted) view of success, it will likely harm you AND the people around you.

The Frequent Failures of Self-Help Groups

Many well established organizations built around causing change eventually become stuck in their ways, fearing change and becoming yet another bureaucratic institution. How much harder is it to create lasting change that creates growth if they bond is built around a weakness?

When people go to support groups they often create bonds around their weaknesses with others who share the same weaknesses. Perhaps this makes the weakness become more ingrained in their identity, makes it seem more normal, and makes it harder to change. If this is true then perhaps the support groups that work are those based around doing something positive, rather than those based around not doing something negative.

And, from an online publishing perspective, if you write about having a specific personal problem (not being able to quit smoking, being overweight, etc.) then that can attract people with similar flaws into your life...recalibrating your sense of normal and making it harder to change the behaviors which create the undesirable results. It is no wonder that most sites in some such self-help categories are scams - anyone who legitimately cares often surrounds themselves with negative influences - making it harder to build and maintain lasting change.

The more you try to erase me, the more that I appear.

Synthetic Happiness

Dan Gilbert has a great talk about how we can synthetically create the happiness that we seek. If our fears or ambitions are not limited then it is hard to be sustainably happy. But by overcoming our fears and limiting our ambitions it is much easier to be happy sustainably.

Do You Realize How Lucky You Are?

Speaking of happiness, I saw the following video on Kevin Kelly's blog, which really helped add perspective.

Now that I have enough spare time to think and grow I see some of the errors in my ways from as little as a month ago. Life is great :)

BTW, this free Clive Thompson article on how social networks work is probably the best marketing article I have read in the past year. It is 10 pages, but well worth the price of admission.

What Parts of Marketing Can't be Automated?

Keyword Technology Improvements

WordStream offers a free tool for keyword research. The coolest feature it offers is that it allows you to download thousands of keywords at once, though it requires giving them your email address to get the keyword list. Their FAQ states they use a variety of keyword sources: internet service providers, browser toolbars, and search engines.

At SES I got to see a demo of their keyword management software, which uses semantic analysis to help cluster keyword themes to automatically mine and group related keywords based off the incoming traffic going into your site. It has a blended set of automated and manual features. From my take I think it could be useful for SEO in some cases, but where it really sings is in decent sized pay per click accounts. I have had beta access to some cool Wordtracker features that are being tested as well. I can't mention everything they are testing just yet, some of those features will be quite cool from an SEO perspective.

Moving Beyond Keywords?

Keyword research + management tools (like the above mentioned tools and Google's suite of keyword tools) are becoming so advanced and affordable, but at some point search may move beyond keywords, at least with the paid search ads. In a recent Search Engine Land article titled Coming Soon: Paid Search Without Keywords, Mona Elesseily mentioned a recent Nick Fox keynote where he mentioned the idea of keyword-less paid search accounts:

Nick mentioned that keywords were used as a proxy for relevance. Conceptually, there is no reason an advertiser couldn’t achieve the same results without having to directly manage a keyword list. Down the road, Google wants to state outcomes and have machine-based learning and algorithms come up with the best method of achieving specific outcomes. In the case of no keyword search, an advertiser (like a retailer) would provide information on products, product descriptions, pricing, etc. and Google would use the information to find the most effective way to place ads in front of potential customers.

Where Will Additional Ad Yield Come From?

Doing keyword-less search efficiently could eventually mean Google integrating themselves into your inventory management system, but that data will eventually be used against you. How else could Google build enough yield to make automated systems perform better than laser targeted hand-rolled campaigns?

And remember, Google is already working as the invisible hand in the online economy. I have some keywords with 0 competing bidders, about a 20% click-through rate, and Google still wants 14 cents a click. The relevancy is there, but the pricing floor is arbitrary. The purpose of the quality score ***is*** price gouging.

What Can't be Automated?

This is where the more abstract + complex (branding & public relations & social networking) and iterative (increasing lifetime customer values & improving conversion rates) aspects of marketing will keep increasing in value. This is where being on the bleeding edge (entering new markets & building your own markets & using marketing techniques that are not common) provides a sustainable competitive advantage.

People (and algorithms created by people) usually can't clone what they don't understand.

To be able to afford being Google's preferred partner for automated ads everywhere you are going to need to build value in the hearts and minds of consumers and/or be more efficient than everyone else in your industry and/or operate in markets that some of the bigger competitors missed. You have to be creating value where the algorithms can not, operating at a level well above execution.

Illusions of Easy Success

While the social networks that flourish on the web bring an artificial closeness to the popular and lead to the illusion that opportunity will be available to everyone, eventually such automated technologies will lead to increased market consolidation and sharper market breaks between the successful and unsuccessful.

As Google plays the role of other established multi-national corporations lots of externalities will appear. Many content-based publishing businesses are getting crushed and will continue to get crushed

“So I don’t know how to characterize the next 10 years except to say that we’ll get to the point - the long-term goal is to be able to give you one answer, which is exactly the right answer over time…what I’d like to do is to get to the point where we could read his site [the definitive authority on a particular searched query] and then summarize what it says, and answer the question” - Eric Schmidt

Shortcuts Partnering With Google?

Sure getting in the flippers can seem like an advantage, but any destination Google builds just gives them more leverage over the rest of the market. Nickels today, pennies tomorrow.

Moving Beyond the Google Economy

The best businesses - the ones that are sustainable for decades - may use Google as a starting point and a distribution channel, but the more distribution channels you can build outside of search the less likely you are to have your business killed by search innovation.

A word from Adam Smith:

In the progress of the division of labour, the employment of the far greater part of those who live by labour, that is, the great body of the people, comes to be confined to a few very simple operations, frequently to one or two. But the understandings of the greater part of men are necessarily formed by their ordinary employments. The man whose whole life is spent in performing a few simple operations, of which the effects too are, perhaps, always the same, or very nearly the same, has no occasion to exert his understanding, or to exercise his invention in finding out expedients for removing difficulties which never occur. He naturally loses, therefore, the habit of such exertion, and generally becomes as stupid and ignorant as it is possible for a human creature to become... His dexterity at his own particular trade seems to be acquired at the expense of his intellectual, social, and martial virtues. But in every improved and civilised society this is the state into which the labouring poor, that is, the great body of the people, must necessarily fall, unless government takes some pains to prevent it.

Rely too heavily on Google and your business becomes a commodity. One of the healthiest things a worker can do is explore something they know nothing about. It helps prevent you from becoming a tool (which also makes it harder for tools to clone what you do), making it easier to be.

Micropayments: Could Google Make It Happen?

Remember how the news media wanted Google to come riding to the rescue and save them, and their failing business model?

Well, Google might have found a way.

This should be of huge interest to anyone who produces content on the web.

IF

...it comes off.

Micropayments

Google is planning to roll out a system of micropayments within the next year. Micropayments, as the name implies, are small payments - a cent or even a fraction of a cent - and the idea is that micropayments can be used to pay for accessing web content.

Google sent a paid content proposal to the Newspaper Association of America outlining their ideas. Micropayments will be an extension of Google Checkout, Google's PayPal competitor.

While currently in the early planning stages, micropayments will be a payment vehicle available to both Google and non-Google properties within the next year,” Google wrote. “The idea is to allow viable payments of a penny to several dollars by aggregating purchases across merchants and over time.”

Micropayments are not a new idea, of course. People have been suggesting micropayments will be the next big thing for quite a while now. Jakob Neilsen got it rather wrong in 1998:

I predict that most sites that are not financed through traditional product sales will move to micropayments in less than two years. Users should be willing to pay, say, one cent per Web page in return for getting quality content and an optimal user experience with less intrusive ads. Once users pay for the pages, then they get to be the site's customers, and the site will design to satisfy the users' needs and not the advertisers' needs."

Will Google be the first company to make micropayments work? It remains to be seen, but if they do, this will be the biggest game-changer on the web since PPC.

The Decline Of News

The news industry have been howling as their outdated business model falls apart. Their days of running regional oligopolies are fast coming to end, eroded by the ubiquitous web and the low cost of online publishing. The media is fueled by advertising, and as their readership fragments, the value to advertisers drops.

But what happens if 100% of a newspapers revenue came directly their readership? Micropayments may make this possible.

The big question is: who would pay for the garbage the media serves up? Why should we pay for regurgitated press releases and stories about celebrities shopping expeditions?

Micropayments could help increase the quality of news. Paid news outlets, like STRATFOR charge $349 for annual membership. How can they do this? By providing a level of analysis and research you don't get from mainstream media. Clearly some people are prepared to pay for news that isn't driven by advertisers and the lowest common denominator.

However, the subscription price is still a barrier for most. But what if micropayments, by introducing economies of scale, made it possible to get quality news, analysis and content for a few cents a week? What happens when the price is so low you barely even notice you are paying it?

The scale of the web, plus the tiny charging increments, could be a game changer. And not just for news. This opportunity applies to anyone in the web content business.

How Would This Work?

Nielsen may have got the timing wrong, but he had some good ideas about how a micro-payment system should work:

A true micropayment system would operate invisibly and simply accumulate charges on the user's monthly bill without an explicit confirmation for every click. That's exactly how electricity bills and long-distance telephone bills work. True, people wouldn't make many long-distance calls if they first had to discuss the fee with an operator (though we certainly made calls back when we had to talk to a long-distance operator and acknowledge charges for each call). In any case, telephone companies now simply add up the calls and put them all on a single bill. Intellectually, you know that it costs money to use the phone and turn on a light, but if you want to talk to somebody, you pick up the phone. And if the room is too dark, you switch on the light. You don't go out to the meter every few minutes to check on your electricity bill.

A micro-payment system should be quite different from existing payment systems. You won't be asked to fill out your details each time. Rather, it would be as simple as a click of a button, and tracking and billing would happen in the background.

Google Extends Their Reach

With Adsense, Google cleverly figured out a way to click the ticket on content it didn't own or produce.

The problem with Adsense is that it works best when placed on content heavily geared towards commerce. Micropayments opens up a business model for other types of content, content that is not easily aligned with a commercial imperative.

Imagine the potential for high quality, non-commercial content. Imagine the potential for channels like YouTube. On demand television and movies for a few cents. With micropayments, the volume of content Google could click the ticket on gets much, much bigger.

But the big question remains....

Will users pay the price?

What do you think?

Poscript by Aaron: Clay Shirky published an article in 2003 about fame vs fortune & micropayments. And, while I have generally been skeptical about micropayments, we recently had an interesting thread about this topic in the forums that changed my perspectives of the topic.

Design Agency SEO Model

Following on from my post "What To Consider When Starting An SEO Agency", we had a few questions about how to approach the design agency model. This is a model whereby you partner with web design companies. I used to run this model, so here are my ideas on how you can approach it.

What Is The Design Agency Model?

This is when you partner with one or more design agencies who do not have a SEO skillset in-house. This can be for a variety of reasons. Perhaps SEO has never occurred to them, they might not have enough full-time SEO work for a new hire, or SEO just seems like too much hassle.

Forming design agency partnerships can be quite lucrative for the SEO. The design agency typically has a stable of existing clients, and if they're big enough, a salesforce who bring in new clients on a regular basis. The design agency bills hours. In essence, they are a consulting business. The more hours they bill, the more money they make. To scale a design agency, they simply add more bodies.

This is where the opportunity lies for a win-win

How To Approach It

When a design agency is pitching to a client, their incentive is to pile feature upon feature, which of course, takes time to build. The more time they can bill for a build, the more money they make.

SEO is an add-on feature.

Some agencies will be happy just to have an extra service option available to clients so the client doesn't go elsewhere, but most agencies will want a cut. I used to work on 10-15%. Because the clients tend to be corporates, you could charge quite high prices, and they wouldn't blink.

Chances are, the design agencies clients are already asking about SEO. Typically, this happens after the site is actually built, and the client can't find themselves on Google. When you find such an agency, it's not difficult to put a mutually beneficial deal together. The demand already exists, and they can't service it.

Identify agencies that are not so big as to have an SEO capability in house, but big enough to attract a steady flow of clients. It's good if they are in your town. Having the ability to go and see them, and work alongside their sales people and designers if need be, is a big plus.

Try to arrange a face-to-face meeting. SEO has a fly-by-night reputation, so it's much easier to establish credibility if you're sitting in front of the people making the decisions, rather than being a detached voice on the phone. They'll also want to see that you're presentable to their clients if you need to attend meetings.

The pitch is you offer white-label search marketing services. You can sweeten the deal by offering to do the first project at cost. The aim is to prove concept and prove that you can fit in with their way of working. It's no different than a job interview and trial period in this respect.

The seamless white label SEO service you provide has little or no overhead cost to the agency. They don't need to hire you and provide you with staff benefits. They'll want to know how and where you fit into the design process, so be prepared to answer such questions. The subtext of this question is they want to know if there are hidden costs i.e. is your work is going to slow the designers down, or make life difficult for them. You could approach this question by saying that if you're in the projects at an early stage, you can make painless recommendations in terms of site build. Emphasize how your work will fit in smoothly, yet provide their clients with added benefit.

Also provide them with marketing collateral. This is the text they include in sales proposals. State the benfits of search engine marketing from a business perspective. You'll get a feel for the type of infoirmation you need to include by looking at their existing proposals. Typically, sales proposals aren't technical in nature. Give an overview of what you do, the benefits you provide, and the cost.

I found that including a PPC option is a good way to go, especially for clients, or agencies, who don't have much awareness of SEO. Even if the designers ignore all your recommendations - believe me, this happens - you can rescue the situation by ensuring traffic still arrives via PPC. You can then demonstrate that traffic is arriving via the search engines, and if you have more input in future, those traffic levels will increase.

Once you've got the first job under your belt, you can negotiate long term arrangements with the agency. You can then go to other agencies - careful that the agencies don't compete directly - and offer the same service, using the first agency as a reference. Repeat until you have as many agencies as you can handle. 4-5 reasonably sized agencies can create a flood of work for an SEO, so much so you'll soon find yourself employing extra staff. That's a great return for 4-5 hour long meetings.

Billing can be by the hour or project based.Try to fit in with however the agency bills. I found most like a project based pricing scheme unless there is significant level of ongoing work.

Benefits

There are significant benefits to this model for the small SEO provider.

Firstly, you outsource the sales function. Sales can be very time consuming and expensive, and have long lead times. The agencies sales force has an incentive to work hard for you because they can sell higher billing projects, upon which their commissions are likely based. Get onside with the sales people as early as you can. Emphasize benefits such as how many people are looking for SEO services, how valuable an add on it is, and how much agency level SEO can charge. The sales people are your friends, as you earn them more money.

If you've selected your agencies carefully, you get to work with bigger clients than you might otherwise land yourself. Besides being more lucrative, you get to work up more and more contacts at high levels. These people often job hop from corporation to corporation, which opens further opportunities for you down the line.

You don't have to build up your own brand, which can take a lot of time and effort. You leverage off the pre-existing brand and reputation established by the agency.

Downsides

Loss of control. It can be harder to pick and choose clients if the sales person is keen to sell every client on SEO. This is why it is important to plan for contingencies i.e. if you get a client hell bent on an all flash, brand heavy site, then be prepared to become Mr PPC. You'll also have less control over projects, as projects are typically managed by dedicated project managers.

Hostility form designers. Designers typically don't like people dictating design standards to them, especially people from outside the agency.

Look for areas where there is cross-over and articulate SEO in their terms. For example, if an agency is focused on usability, then talk that aspect up - usability imperatives and SEO often go hand in hand. Have alternative, low impact SEO strategies ready if you can't get your first choice on strategy. For example, add a site map to facilitate crawling, focus on off-site strategies like link building, build a site-within-a-site consisting of pages that aren't part of the main design, and suggest alternative navigation for those with disabilities.

Some designers are fine, of course, but expect the most push-back in this area. If you get too much push-back because you are imposing what they perceive as draconian conditions, then they will likely complain about you to management. As the designers are the bread and butter of the agency, and you are merely providing an add on, you may soon find yourself out of a contract.

You don't own the clients. The clients belong to the design agency, and they might not want you to use the names of their clients in your promotional material. Also, if you ever want to sell you business, you don't have a client list to sell, which is typically the only thing of value. Essentially, you are not building a business you can likely sell, you're operating as an independent contractor.

When it comes to billing, make sure this is not dependent on the agency getting the money out of the client. Bill the agency directly and let them worry about credit risk. It can be difficult to chase their clients for money due to the indirect nature of the contract.

Any questions? Add 'em below. It would also be good to hear from SEOs who run this model.

Are You Fighting Human Nature? Measuring Opportunity Cost

Danny Sullivan highlighted his frustrations with dealing with running Sphinn, a social media voting site for internet marketers:

Sounds easy, right? Sure, but as I’ve learned in the two years since we’ve run it, it’s a minefield.
...
While a community site can be fraught with egos, and concerns about double-standards or fairness, at least you have sympathy for people who are part of the community itself. Who have invested time, or energy or part of their souls to it. You want to do well by them. You want to do nothing for the drive-thru asshole who makes no effort at all.

A number of years ago I bought Threadwatch and eventually shut it down in part because it was facing some of the same issues. Largely it can be summed up with drinking well = pissing well (and, to some, a full on outhouse).

We can complain about human nature, but we can't really change it.

The problems with free for all internet marketing sites are 3 fold

  • The economic incentive for sharing is broken. Apply an idea to your own website in obscurity and make thousands of dollars (or more) off it. Share it publicly and lose a competitive advantage as you watch it get cloned and/or burned to the ground. If it is really effective then sharing the idea can not only cost you a competitive advantage, but can also put you on the Google watch list, and make search engineers more likely to penalize your websites.
  • There are perhaps at most a few dozen SEOs who both a.) are original thought leaders b.) who frequently share original strategies publicly freely. While there are over 1,000 SEO firms listing in DMOZ AND there are over 4,000 SEO blogs listed in BlogCatalog's SEO category. Most of the market ***is*** noise. Sure people who are relatively obscure have great ideas from time to time, but rarely are they the people trolling public internet marketing sites to vote up a pool of (largely) spam & rehashed content.
  • Those who really know what they are doing in the SEO field should eventually be able to earn x hundred to y thousand Dollars per hour. Whereas the media that is freely available is often presumed to have limited value because of its price-point. Even if you share great tips with people they won't value your help. A couple days ago a person who bought a domain name based on a mention here also wanted me to link to them for free. And if you went to their site there was no mention of me and no link to my site, in spite of me being the reason they have the great domain name. Take. Take. Take. Take. Take. No thanks!

Want to get rid of the noise? Charge $100 (or more) to open a new account (and maybe an annual membership fee). That will clear out the 99%+ of the market that are faking it until they make it and/or who are there just to spam the site with dreck. And (if required) you could charge $1 each for votes, making them have a real economic cost.

Such moves would clear out a big chunk of the current Sphinn audience, but no pain no gain. Longterm the site would be far stronger if the signal to noise ratio was improved. Take the earnings from new account registrations and apply that to hiring a full time editorial staff that both writes original featured content AND scours the web to submit stories. Maybe some of the features become member's only.

To further promote hunting for leading content across the web, perhaps whoever submits posts that make the homepage get some "earnings" for finding that story (though this would need some thought to prevent encouraging of spamming...but it is easy enough to have advertising sponsors offer prizes and such that are non-monetary to some degree).

One of the lessons I learned the hard/slow/stupid/painful way is that anytime you put all of the opportunity cost on yourself people will abuse it. They will treat you like a tool and waste your life. And some days they will make you loathe humanity. The more popular you become the more nutcases you reach. (Of course you reach great people as well, but they are not the pain in the ass that the bottom 10% of the market is).

You have to cut off the bottom feeders and charge for anything that wastes your time. Today a guy called me up for phone support for one of our free tools. He got no help because my business model is not built around offering quality tools AND premium personalized support for free. If I value my time at $0 then eventually so will the market. I can't think of another person who works as hard as I do who sits around waiting for calls demanding free help. Of course people can pay for help and get my best. And that is the beauty of economics...it fixes most of the noise problems. But if you don't value your time you can't (legitimately) expect others to do so.

What To Consider When Starting An SEO Agency

Starting your own SEO business can be a challenge. In DMOZ, a directory often hostile to SEO listings, there are still over 1,018 SEO service companies listed. Do a Google search on SEO companies, are you'll see.....quite a few more!

Ok, it's a big planet, and there is room for many operators, but it's true to say that in the SEO game in 2009, no one is short of competition.

There is a lot of competion because there is a low barrier to entry. In order to enter the SEO market, someone only need put out an open for business sign, in the form of a website, and they are as much an SEO Agency as the next guy.

Maintaining a profitable business is another matter, of course.

If you're thinking of starting an SEO agency, here are some aspects you should consider, and some recommendations on how to position in today's marketplace. If you're an SEO who has started their own business, and made a success of it, it would be great if you could share your experiences in the comments below. What are the things you know now, that you wished people had told you when you started?

Essential Considerations

1. You

The first part of your plan should be all about you.

What are your strengths and weaknesses? Are you a self starter, or do you prefer being given work to do? Take a long look in the mirror and be honest with yourself: is running a business really something you want to do, or is this a means to avoid looking for employment? How suited are you to running a business?

No doubt you can see where I'm going with this. There are personality traits people have that make them suited to running a business, including a desire for independence, being a self-starter, and having the ability to take financial risk. One such risk is the lack of steady salary. Do you have a means of financial support? Savings? If you do, it will make life a lot easier. If you don't, consider building up that safety net before you start.

Once you've decided that this is definitely for you, great! Working for yourself can be an immensely rewarding thing to do.

2. Strategy

Where are you going and how will you get there?

Map out a business plan.It need not be complicated. In short, what can you offer that your competition can't? How much will you have to sell in order to cover your expenses and make a profit? How, exactly, are you going to sell your services and execute delivery?

Once you get a feel for the figures, it will make it easier to see if your ideas are achievable.

3. Finances

How much money will you need in order to get out and sell, and then to provide the services? How much money will you pay yourself? Do you need staff? Do you have an accountant? Do you know your break-even figure? How will you manage bad debts or late payments?

All business ultimately comes down to maths. You need to bring in more than you pay out. Failure to do that means the business fails.

Two important areas are cashflow and value of a good accountant.

Business lives or dies on cashflow. A business can be selling well, but if it doesn't have enough money in the bank to meet payroll or rent at the end of the month, it is finished. Try to arrange sufficient overdraft or investment to ensure you can survive between bill payments. Clients often pay later than you want them to.

Secondly, an accountant is worth their weight in gold. Not only do they take on tedious business of tax filing, they make sure you are claiming all the deductions you're entitled to. For example, your computer equipment, your use of home, your broadband, your electricity use can all be charged to your business. This reduces your costs and tax obligation.

4. Your Idea

Does your business serve a customer need or want? Can competitors easily copy what you do?

These are two critical areas. Many people go into business because they want to do something they like doing. That's ok, so long as there is enough consumer demand. However, think about the number of actors and musicians out there. Most aren't making much, if any money. This is because they are pusrsuing a job they enjoy, and largely ignoring supply and demand considerations. Ignoring supply and demand is ok for actors, but it's poor way to run a business. What can you supply that there is a ready demand for? Can you create new demand?

Secondly, the barrier to entry. Because it is so easy to start an SEO business, you'll need something else to differentiate yourself, other than just having a website. A website is the base level entry point. What have you got that others can't copy? Are you able to service a geographic locality better than other providers? Do you know a particular market vertical well i.e travel/fashion/finance/auto? Do you have a name/brand people know? Can you leverage reputation and contacts from your previous career?

5. Marketing and Sales Strategy

This is part of your business plan, but it is an area that requires special attention. Without a marketing strategy, how are people going to know who you are? How are you going to sell to them? If your answer is SEO or PPC, you'll be up against a lot of competition. Those channels are saturated, and in most cases, there is little to distinguish one service provider from the next.

How do you intend to implement your strategy? What channels will you use? Have you allocated time and money to that strategy? For example, if you intend to speak at conferences, you need to budget for the travel and attendance. You also need a plan for who is going to do the work while you're away marketing and selling.

The sales cycle can be long and tedious. The bigger the client, the longer sign-offs can take. Typically what happens is that many prosposects will all sign off at once, after months of indecision! Can you scale up quickly if a lot of work comes in? Will you turn down work?

The Challenge In 2009

The specific challenge to SEO services providers in 2009 is differntiation. There are many people offering services, so how do you stand out from the rest?

One way is to zig when other zag. Is everyone heading off to the same SEO conferences, saying much the same thing? Instead, how about going to the conferences no one else goes to? Travel industry conferences. Dental conferences. People in those industries need SEO, and you might be the first person who has ever talked to them about it! With careful selection and a little luck, you might corner a lucrative, untapped market.

Do companies really need SEO services? Perhaps they just need their own people trained. Can you offer in-house training courses? How about providing a number for them to call whenever they have an SEO question? Be the go-to guy for a number of small firms who may not be able to afford a full seo service, but might be able to afford an hour of advice or coaching each month.

Partner with design/devlopement companies. Perhaps they can't afford to hire a full time SEO on staff, but if you sign up 4-5 design companies, and offer your SEO service as an add on, you should enjoy a steady stream of work. They do all the sales work for you, you just do your part, and bill the agency. They take a cut.

Got any other ideas on differentiation, or war stories about running your own business? Please feel free to comment :)

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