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Monopoly on internet

Is it possible?

         

Artstart

2:49 pm on Oct 28, 2004 (gmt 0)

10+ Year Member



Lets say one builds 20 sites selling same products and manages to make them top 20 across all major SE. ( yes it is doable ).

Then move into CPC area and have 5 sites cover top 5 positions there. Well all that advertise make money so could your sites.

Later move into affiliates and offer better returns on advertising your products.

Does anyone know if it was ever done?

Lord Majestic

3:02 pm on Oct 28, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Then move into CPC area and have 5 sites cover top 5 positions there. Well all that advertise make money so could your sites.

Costs will go through the roof -- a customer will click on more than one link, but buy only from one site.

Essex_boy

4:28 pm on Oct 28, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



Used to see something simmilar years ago where the serps were all one firm, dont it see now though.

So teh answer is yes it is possible.

Morocco

5:39 pm on Oct 28, 2004 (gmt 0)

10+ Year Member



Lets say one builds 20 sites selling same products and manages to make them top 20 across all major SE. ( yes it is doable ).
Then move into CPC area and have 5 sites cover top 5 positions there. Well all that advertise make money so could your sites.

Later move into affiliates and offer better returns on advertising your products.

Does anyone know if it was ever done?

This is how internet millionares do it. Its quick easy and all it requires is hard work.

good luck

Artstart

6:28 pm on Oct 28, 2004 (gmt 0)

10+ Year Member



Thank you guys for your input. If it was done before, it can be done again. Not afraid of the hard work - espesially when you have high tech/low wage pros working for you.

Costs will go through the roof -- a customer will click on more than one link, but buy only from one site

All of those guys making money, right? So why one can not make all of their money and pay all of their advertising costs?

blaze

11:46 pm on Oct 28, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



It'll work on the SERP but not the CPC. You'll just get into a bidding war with people who have just as deep pockets as you and make it unprofitable for you to do so.

blaze

12:55 am on Oct 29, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



What you may also find that if it's even slightly profitable your competition will get fed up with your tactics and do PPC denial of service against your listings.

pdivi

1:10 am on Oct 29, 2004 (gmt 0)

10+ Year Member



It's tough to keep out competition when there are almost no barriers to entry. If you try to reap the benefits of monoply by raising prices, you will quickly invite competitors. You can have a monopoly on the web, but monopolistic profits are not sustainable as it only takes a few days to develop and launch a new web business.

Monopolies occur where there are barriers to entry.

Now if you could lock-up a supplier with some sort of exclusive agreement, that would be a different story.

derekwong28

3:57 am on Oct 29, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



X10 did it sometime ago with their pop-ups. Even now, they don't have mcuh competition because their products are so cheap.

I don't think it is as easy with SERPS now. I have 3 doma with equal PR ranking and they used to appear side by side on the SERPS for some search terms. Now it seems that Google will only allow result from one site to appear, even though the pages are different. Somehow, I think staff at Google knew about this and made sure that results from one domain to appear.

CPC is very very dangerous. For a start you competitors can involve you in a financial bloodbath if they want.

Artstart

11:35 am on Oct 29, 2004 (gmt 0)

10+ Year Member



blaze
denial of service
are you talking about DOS attacks?

You guys a re missing one point. Sites will be completely different - look, feel, everything. As if they have different owners.

derekwong28 - did you host them with the same provider?

Essex_boy

11:47 am on Oct 29, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



If your going to use diffrent hosts make sure your DNS details are all diffrent as well.

derekwong28

12:15 pm on Oct 29, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



You are right about this, the domains are hosted on the same account with the same ip. Thanks, I guess you learn something everyday!

blaze

2:02 am on Oct 30, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



PPC Denial of Service is when people click (or hire people to click) on your listings to get you off of PPC.

In theory it seems reasonable that you could seperate the websites, however, in practice you may find that a bit harder than you'd like.

For example, your product offering will have to be different as well as your creatives. Your competition (as well as google) can smell templated databases a mile away.

However, it's worth a shot if you are already profitable form the monopolizing the SERPS. You may get lucky.

My only suggestion is that if SEPRS don't work out and you think PPC advertising is going to be your savior, you'll probably want to look elsewhere.

I think CPC has a 20-30% chance of working.

OlRedEye

8:13 am on Oct 30, 2004 (gmt 0)

10+ Year Member



If you have 10 sites showing in the SERPs selling your product, and your supplier is not tied up, all I have to do is get 1 site in there and undercut your price. Then we start a price war. If you have a sole supplier tied up all you need is one site anyway. Same with PPC. You have to pay PPC for many sites, I pay for only one - advertising 'lowest price'.
I will make good money from your marketing efforts :)

jsinger

9:48 pm on Oct 30, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



One of our competitors tried in the 90s to monopolize web adverting and did a pretty good job of it with his deep pockets. He thought most of his competitors would give up.

Nowadays he has much more competition. He has created a very risky business. He does do a ton of volume but probably makes almost no money. To handle the break-even orders he has built a huge warehouse and support infrastructure. There's a huge downside to his model if something-- almost anything -- goes wrong.

Artstart

2:11 pm on Nov 2, 2004 (gmt 0)

10+ Year Member



Essex_boy - but ofcourse =)

lgn1

4:24 pm on Nov 2, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I think the trick is to diversify. Develop several sites selling different product lines. Use differnt SEO techniques on each site. Set up a differnt business model for each site. The chances of tanking all the sites in the SERP's at the same time would be rare. The more diversified you are, the less sharp will be your ups and downs.

Trying to obtain a monopoly will not work, as their will always be somebody with more money than brains, that will compete with you.

A monopoly will create competition, as people looking for a market to see a product will say, hey their is only one or two players in that field, so this is a good market to get into.

In a free market economy, the market will self correct,
and I mean this for all business factors, not just stocks.