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LED Digest 1726: Where to Spend, Where to Focus? Print E-mail

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List Moderator:                      Published by:
Adam Audette                            LED Digest
adam,led-digest.com      http://www.led-digest.com
.................................................
January 12, 2003                       Issue #1726
.................................................


           .....IN THIS DIGEST.....


====== NEW ======================

        <Moderator Comment>
                ~ Back in Action

        --== Banner Exchanges in 2004 ==--

                ~ Michael Colucci
"Are banner exchanges still popular?"


==== CONTINUING =================

        --== Where to Focus? ==--

                ~ John Taylor
"...place your focus on making *long term*
improvements..."

        --== Affiliate Ad Blocking Software ==--

                ~ Ben Cunningham
"Have fun shopping in the largest store of empty
aisles on the planet!"

        --== Affiliate Programs [was Ad Blockers] ==--

                ~ David Yancey
"Make sure that the affiliate and merchant
sites are 'co-targeted'.

        --== Shopping Carts ==--

                ~ Rebecca Neilson
"Some shopping carts...can be directly linked
to your inventory program."


==== BILLBOARD ===================

        --== Commercial Sites, Non-commercial Sites, and Search ==--
                ~ Lanell Grant


======= NEW =====================================

<Moderator Comment>

Our server issues are behind us now, so please go back to the
regular posting address:

This email address is being protected from spam bots, you need Javascript enabled to view it

Time to get back to work!

- Adam

------------------------

From: Michael Colucci
Subject: Banner Exchange

Are banner exchanges still popular?  If so, can anyone recommend a
good banner exchange to join?

Michael Colucci


===== CONTINUING =================================

From: John Taylor
Subject: Capital focus

> If you suddenly had the infusion of significant capital
> into your on-line business... where would you focus?
        - Tom Anson, LED 1725

Tom,

When you find yourself in a cash rich situation, it can feel like
you are a kid in a candy store and you may be tempted to buy all
sorts of goodies!

My best advice would be to review all your options very carefully
but place your focus on making *long term* improvements to your
sales and marketing processes:

1. Activities that will generate *profitable* traffic

2. Activities that will enhance your search engine ranking

3. Activities that will improve your web site sales conversion rate.

Don't invest in large scale advertising and promotional activities
until you have undertaken some small yet valid tests to ensure that
such advertising will provide you with a return on your investment.

Building the link popularity of your web site will result in long
term results.

Even a small increase in the conversion rate of your web site will
make a big difference to your bottom line with the same level of
visitors that you are enjoying right now. In fact there is no point
in paying for more traffic until you have tested and tweaked your
web site to improve your sales conversion rate.

Good luck

Take care

John Taylor
www.test-and-track.com


------- new post - new topic -------

From: Ben Cunningham
Subject: Ad blockers

> Do viewers have the right to install software that
> defaces their view of your site and removes your
> revenue generation mechanisms?
        - Marty Milette, LED 1722

I run many web sites that are all supported by affiliate ads that
are now trying to be blocked.  Do I believe ad-blockers are legal?
Probably.

So, if these ad-blockers succeed and block all ads (which is pretty
much impossible and I am already setting up a way around Norton's ad
blocking), do I believe someone would pay something to visit my
sites?  Probably not.

Do I keep paying time and money for hosting and web development?
Nope and neither does any other content site that isn't established
and large enough to charge a subscription fee.

So, by succeeding in using ad-blockers, you have succeeded in
limiting the web to a lot of retail sites and a small number of
content sites (which can now charge more since there are less
competing content sites).

Congratulations, you no longer have to pay for an ad-blocker (just
everything on the web)!

Also, the Norton ad-blocker blocks links that contain qksrv.net
because CJ affiliate links contain that domain name.  So, what if
they try to block ads from all the retail sites that have affiliate
programs?  Are they going to try to block any link that contains
amazon.com, so when you go to amazon.com it is just a blank page?

Have fun shopping in the largest store of empty aisles on the planet!

Ben Cunningham
http://www.affiliatemoneymakers.com


------- new post - related topic -------

From: David Yancey
Subject: Effective Affiliate Partnerships [was: Ad blockers]

In LED #1724, Mark Whitman has much to say about outbound affiliate
links.  We are about to launch the affiliate programs for our new
vivante.com paid search site, so I was struck especially by his
remark -

> ... It makes no sense to give users lots of reasons
> to leave your site by means of affiliate links in hopes
> of a relatively meager affiliate commission.

On the surface, this harsh judgement seems to run counter to the
most common aim of affiliate programs, which is to allow those
sites which can aggregate visitors to monetize them through (the
chance of) earning affiliate commissions on exit.  Indeed, a very
large number of sites exist solely to capture traffic, then re-route
it to any one of dozens of affiliates.

How *dare* Mark say that this "proven" online concept "makes no
sense"?  If the better-quality, content-rich sites took his advice,
I would be left only with crappy, misleadingly promoted affiliate
farm sites as possible partners.  Not good for a search site that is
determined to be the top-quality finding tool for the savvy,
educated, busy, affluent consumer.

So what Mark says would be really outrageous -- if he were not 100%
correct!

In designing our program,  we consulted with some of the most
experienced brains in affiliate sales networking, and concluded that

1.  If an affiliate program is not good over the long term for both
the originating as well as the merchant site, the so-called
partnership will quickly become a one-way street.  The clear answer?
 Lifetime commissions.

What it means for us is that we have to design a revenue model that
can pay out significant rewards for affiliates over time as well as
on the front-end of the sale - but which will not then price our
services out of the market.

Tough assignment!  But it is simply the only solid way to ensure
happy and motivated affiliates as we build the business.

2.  If the merchant site is truly targeted, as vivante.com is, then
it makes no sense to simply sign up thousands of un-screened
affiliates who may or may not generate quality traffic.  The obvious
conclusion?  We have to run our own program, and carefully add
serious-minded affiliates, one by one.

It makes no sense to make this effort for a "partner" who may not
generate quality visitors in significant numbers, so it means we
have to be prepared to work with our affiliate partners over a long
period of time we have to invest in the affiliate relationship over
the full life cycle of our business, not just on the front-end.

3.  If the target audience of the affiliate site comprises mostly
people who are very unlikely to "convert" once they arrive at the
merchant's doorway, the affiliate has very little realistic chance
to earn *any* commission, much less a lifetime payout for his
aggregation effort.  The obvious lesson?  Make sure that the
affiliate and merchant sites are "co-targeted".

What this means to us is that since we are after a predominantly
25-plus audience, with special emphasis on female users and seniors,
we won't be seeking affiliation with sites aimed at, for example,
teens, students, and other general audience surfers.

4.  If - as Mark Whitman suggests - the merchant has no interest in
generating "back traffic" to the originating affiliate, then it is
true to say that the affiliate is merely serving as a doorway to the
merchant, soon (probably) to be forgotten by the visitor.  The
reasonable response?

The merchant needs to do more than simply credit the affiliate in
some tracking program; he needs to design his relationship with the
visitor so that the visitor is encouraged to *return to the
affiliate site when his "business" is done.*  Whew!  That is a tall
order.  But that is exactly what our program will be doing.

Thanks, Mark, for raising doubts about the conventional,
take-it-for-granted relationship between affiliate sites and
merchants.

And thanks, too, for your insightful suggestions on using content
newsletters to drive affiliate sales - that is another idea we have
incorporated in our program.

David Yancey
http://www.vivante.com


------- new post - new topic -------

From: Rebecca Neilson
Subject: Shopping carts

> I am looking for a shopping cart that will allow me
> control the number of items sold, without any oversell.
        - Julian de Burgh, LED 1722

Some shopping carts like MIva Merchant can be directly linked to
your inventory program.  You just have to update your site to show
quantity available and when that is gone you can direct your
shopping cart to say out of stock or backorder with estimated time
before delivery can be made.

Rebecca Neilson
www.hansons.net


==== BILLBOARD ====================================

From: Lanell Grant
Subject: Commercial, Non-commercial, and Search

Hi LEDers,

I simply could not let Michael Martinez latest post go by
unchallenged.

> The on-line business community has been self-deceiving
> for at least as many years as I have been practicing search
> engine optimization.

> The number 1 reason for why people surf the Web
> is to find entertainment. The second most popular
> reason is to socialize.
        - Michael Martinez, LED 1712

This commentary is a bit of a mish mash of half truths that misses
the point. It may be that the number 1 and 2 reasons for surfing are
as stated. What does that have to do with results when searching
"car radiators"?  Are you suggesting dancing radiators to entertain?
How about a site of teen age girls that have a chat line for
radiators? Hey, hey, hey.. let's get social here...

The truth is that many key phrases should and do return those
horrible "commercial" results. That is what the searcher wants..
like it or not.

> In fact, people DO want to see lists of links - but only lists of
> links that they feel have been "vetted" by a third party...

I don't know what Internet Michael is using but I assert that the
average "linking" site is anything but altruistic. They are serious
commercial ventures for the most part. They exist as an SEO
byproduct or as location that sells advertising one way or the
other. There is nothing qualitative about who is found there, it's
just money.

Further, our surfer likely can not differentiate "vetted" sites from
others. I'm not sure I can.

In general owners / sponsors are carefully hidden. I can take
Michael to several that are disgraceful, outright fraud.. claiming
independence but for sale to anyone.

> The vast majority of Web sites which sell merchandise
> are doing so through affiliate programs, while they
> offer significant [non-commercial] content...

More distortion. Perhaps the "vast majority" are affiliate sites? So
what? A huge number of commercial sites don't make money and
contribute little in content or anything else.

Affiliate sites are simply a way for a, gasp, Corporation to market
their stuff. I liken it to MLM in the real world. It's a simple
concept; show it in enough places and probably someone will buy.
Smart buyers recognize multiple markups too!

Underlying this comment is the thought that somehow an affiliate is
more deserving... more pure... more able to inform. What complete
nonsense! If you want thorough and accurate information talk to the
folks closest to the product source. They know more. Can afford
more. Have access to documentation. Etc.

The Internet provides access to a vast array of information. Some of
that information is commercial; it exists to sell something!  It is
corrupting and a great distortion of quality search results to
suggest that "better" is not commercial. Commercial can be
"different" but not inferior.

The "car radiators" searcher may want information on how they
function? He alone bares the responsibility to add, information,
reviews, design or other terms that will better serve his non
commercial quest. Let's hope what he gets is something beyond XYZ
Radiator Corp affiliate #231 who is publishing the canned crap he
got to "get rich working at home".

Lanell Grant


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Copyright 1995-2003 Adam Audette. All Rights Reserved.

"I hear and I forget. I see and I remember. I do and I understand."
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