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Demise of internet-based small businesses?
Google causes cost of marketing to go up.
IITian

10+ Year Member



 
Msg#: 14091 posted 5:01 pm on Jun 8, 2003 (gmt 0)

My forecast! ;)

Because of The Dominic Effect, many small marginal businesses, which relied on free traffic generated by Google and can't afford to pay for marketing tools like AdWords, PPC and so on, will die first.

Google will have some initial partial victories against amateur spammers. After all the spam filters are in place, big businesses will turn to hiring professional spammers. Google has almost no chance of winning against them unless its algos are rewritten entirely. All top SERPS results will be dominated by spam. There is no chance small businesses can face up to that challenge.

I can see future building of internet equivalent of Walmart and Home Depots in the horizon.

Thanks Google. Internet is maturing.

 

Bottler

10+ Year Member



 
Msg#: 14091 posted 1:10 am on Jun 9, 2003 (gmt 0)

Some useful posts on this topic IMO and some very valuable advice from the likes of nell and Zapatista (which almost make me want to expand outside of the affiliate business into pushing my own products)

If you are selling something on the Internet, ask yourself this - what is my repeat customer rate? If the answer is very low, you shouldn't be in this game anyway - the Internet probably doesn't want you and you're simply exploiting the mentality of a naive searcher who believes incorrectly that high placements in the SERPs equals high commercial quality.

If you have high customer retention, you already have a more stable income stream that is not subject to the massive swings caused by search engine changes. In addition, more webmasters will hear of you and link to your site - which you should ultimately want more for the traffic than the search engine rankings.

If you are selling product or services, your primary goal must be to create repeat business by impressing your customers, meeting more of their related needs and marketing successfully to them. Your secondary goal is to flood the SERPs with propaganda for your business. If you can't achieve that, leave this SEO game for those that can, or to the spammers and other affiliate marketers who are pushing higher quality, more valuable offerings to search engine users.

jomaxx

WebmasterWorld Senior Member jomaxx us a WebmasterWorld Top Contributor of All Time 10+ Year Member



 
Msg#: 14091 posted 1:53 am on Jun 9, 2003 (gmt 0)

I disagree with that sort of blanket advice. "The Internet doesn't want you"? There are all sorts of businesses online with all sorts of ways they earn their profit margin.

1milehgh80210

10+ Year Member



 
Msg#: 14091 posted 1:59 am on Jun 9, 2003 (gmt 0)

what is my repeat customer rate? If the answer is very low, you shouldn't be in this game anyway - the Internet probably doesn't want you and you're simply exploiting the mentality of a naive searcher who believes incorrectly that high placements in the SERPs equals high commercial quality.<<
Those are exactly the people who SHOULD be in this game (from their standpoint anyway). That may not be true in the future though..

grifter

10+ Year Member



 
Msg#: 14091 posted 2:02 am on Jun 9, 2003 (gmt 0)

...exploiting the mentality of a naive searcher who believes incorrectly that high placements in the SERPs equals high commercial quality.

That's called marketing, son.

Bottler

10+ Year Member



 
Msg#: 14091 posted 2:04 am on Jun 9, 2003 (gmt 0)

There are all sorts of businesses online with all sorts of ways they earn their profit margin.

That aren't affiliate businesses and don't have repeat customers? Can you name a few?

harmonyjones

10+ Year Member



 
Msg#: 14091 posted 10:56 am on Jun 9, 2003 (gmt 0)

is there any evidence to imply that all future SERP results will be dominated by professional spammers.

I disagree. Pls can you qualify this statment.

Actually I think that Google has brought the cost of effective marketing down, not up.

Take for example their "sponsored links" highly effective and also highly affordable.

Also IITIAN what is the Dominic Effect?

merlin30

10+ Year Member



 
Msg#: 14091 posted 11:01 am on Jun 9, 2003 (gmt 0)

harmonyjones,

"Actually I think that Google has brought the cost of effective marketing down, not up. "

Spot on!

IITian

10+ Year Member



 
Msg#: 14091 posted 3:17 pm on Jun 9, 2003 (gmt 0)

>Also IITIAN what is the Dominic Effect?

Dominic is the name given to the last 'update.' The Dominic Effect is a play on words (The Domino Effect) to tell how the previous Dominic update could have hurted small businesses.

>Actually I think that Google has brought the cost of effective marketing down, not up.

I was comparing to 'free traffic' many small businesses relied on in past. Because of the uncertainties in the SERPS many will be forced to reevaluate their strategies and start buying ads to ensure consistency in traffic. Marketing costs for such businesses will go up.

>is there any evidence to imply that all future SERP results will be dominated by professional spammers.

It was just a tongue-in-cheek observation. Till now small amateur spammers on occasions have been able to do well against big companies on search results. When Google software becomes good enough to catch them, only way to do well on searches will be to come up with sophisticated optimization techniques + ads. Sophisticated optimization techniques will require professionals and is actually glomorized 'spamming.'

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