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PFI is a failed business model

Littleman is on his soapbox

         

littleman

5:43 am on Jun 7, 2002 (gmt 0)



Consider this a Littleman editorial with all the usual disclaimers.

It certainly hasn't been the saving model Inktomi was counting on. Most people would agree that inktomi has a very poorly maintained db, and it looks like the market agrees with us. Inktomi's stock price is teetering on delisting and their poorly maintained db really only has two (and soon to be one) major avenue of exposure which are only being used as third tear results.

AV's pfi seemed dead on arrival
FAST? We haven't heard anything about it in months.
Teoma? How is it going to get people to pay without eyeballs? How is it going to get eyeballs without a quality database?


There is a self destructive dichotomy that happens when a SE goes pfi, it needs to squeeze the webmaster into paying by reducing the free inclusion. That makes the db suffer. The db suffering makes viewers turn away. The viewers turning away makes the pfi less valuable. It is a cycle of decline.

To there credit, both FAST and AV have realized that they need to keep the free content fresh and new in order to attract contracts/users. AV has done a good job lately, but it might be too little too late.

Inktomi is one contract away from becoming irrelevant.

PFI is a failed experiment, it doesn't even matter if we as SEOs like it or not.

zechariah

6:07 am on Jun 7, 2002 (gmt 0)

10+ Year Member



So for the case of google -will people buy into it if they ever go this way & will they power MSN & Co ?. Inktomi will be out of biz soon -if that's the case ?

littleman

6:48 am on Jun 7, 2002 (gmt 0)



IMO, the model is majorly flawed. Google would be uncharacteristically foolish to peruse it.

nell

4:57 am on Jun 10, 2002 (gmt 0)

10+ Year Member



How could giving free search services to anyone using the internet make commercial sense? Someone needs to pay for it.

It seems there are but two options that work.
One with relevant search results, such those as offered by Google, used by companies who wish to provide quality to their own paid subscribers.
The other with paid commercial results who share their revenue such as those offered by Overture.

The issue then becomes one of credibility in how the two above are used. Displaying them together but separate from each other seems the correct way to do it.

Mixing the two and passing them off to the public as relevant results is a money motivated scam practiced by prostitutes. One in particular has but one customer left. Since that remaining customer is also a prostitute I would expect them both to be working the public for a long time.

tedster

5:39 am on Jun 10, 2002 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I'm thinking that PFI might make sense, but ONLY if the algo is also very strong and continues to receive significant resources and improvement.

Paying to be included in a spam-o-rama seems insane to me, and ultimately not useful to the end user. And if the user base dries up because the results aren't helpful, then any model will fail.

The challenge is how a search engine can make money AND serve their original purpose as a search resource. If they neglect either side, they've got troubles.

rankboy

4:33 am on Jun 20, 2002 (gmt 0)

10+ Year Member



Excellent post littleman. I wholeheartedly agree with you that PFI is a terrible option for search engines. True they do need to create revenue for themselves, but this can be very easily done with the amount of traffic running through their system. I worked with an SEO company that was doing $2,000,000 profit per MONTH! All they did was get a good client in each industry and sent them traffic through the engines. They were very good at what they did, but regardless all a search engine has to do is insert only one result in the top 10 of searches and send the traffic to a relevant affiliate program or client. One result isn't going to throw the entire SE balance off but will give the engine a chance to make money. If the engines realize that the only true SEO is themselves, and they don't abuse that privilege it will be a win, win situation for everyone involved.

Robert Charlton

5:39 am on Jun 23, 2002 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



Hmmmm... If one, why not two, and if two....?

Orion

3:26 pm on Jun 25, 2002 (gmt 0)



A different approach to the same question would be to ask, does PFI improve the quality of the search results?

I think that algorithmic engines are trying to say that PFI improves the quality of the search results (and makes us some money that helps to pay for the cost of providing search to consumers for free). So if you search on "Under a Tuscan Sun", you get an Amazon listing for the book.

I agree, however, with Google's position which basically says, we find the best sites and rank ANYWAY them according to relevance. So why in the world would we introduce PFI.

So if PFI does not really improve the search results, then it probably is a failed business model. Since today, search quality seems to be the #1 requirement to survive.