On Hacker News, Melvin, from Web Design Company, had a great analogy on the Mahalo business model:
Let's use a different industry to illustrate what is happening.
Let's say a band named The Beatles records a new album. The local radio station gets a copy of their album and plays their song. The listeners love it so they play it more often, but they don't mention who the band is and on their website, they put up a link to download the song... but without any credits. Their audience grows. They get advertisers to advertise to their audience. They say, "hey, playing good songs gets us more listeners and more listeners gets us more advertisers, which gets us more $$. Let's do this more often." So they go do this 500,000 times, and each time never mentioning who the artist is. They grow and prosper while the artists starve.
Oh, in the mean time they call the artist scum.
In the above metaphor, the artists are the bloggers whose content Mahalo is using. The radio station ripping off the artist is Mahalo. The Federal Communication Commission is like Google, who is allowing all this to continue because the radio station is giving them a cut from the advertising revenue.
Hope this helps make it a little more clear why what they are doing is wrong, needed to get exposed and needs to get fixed.
The analogy isn't 100% perfect...but it *is* pretty darn close. :D
Jason is not 100% Jim McCormick, but he isn't 0% either.
Gain a Competitive Advantage Today
Your top competitors have been investing into their marketing strategy for years.
Now you can know exactly where they rank, pick off their best keywords, and track new opportunities as they emerge.
Explore the ranking profile of your competitors in Google and Bing today using SEMrush.
Enter a competing URL below to quickly gain access to their organic & paid search performance history - for free.
See where they rank & beat them!
- Comprehensive competitive data: research performance across organic search, AdWords, Bing ads, video, display ads, and more.
- Compare Across Channels: use someone's AdWords strategy to drive your SEO growth, or use their SEO strategy to invest in paid search.
- Global footprint: Tracks Google results for 120+ million keywords in many languages across 28 markets
- Historical data: since 2009, before Panda and Penguin existed, so you can look for historical penalties and other potential ranking issues.
- Risk-free: Free trial & low price.