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Internet Marketing Case Study: Wakamow Heights Bed & Breakfast

Posted on September 17, 2007. Filed under: Internet marketing articles |

In April 2006 my parents sold the house they had lived in for the past twelve years and purchased an historic mansion in Moose Jaw, Canada.

Originally built in 1908 by one of the wealthiest men in the city, the 3-story mansion has been a bed and breakfast since 2001.

Seeing that Moose Jaw had become a tourist hot spot over the past decade my parents intended to keep running it as a bed and breakfast.

I volunteered to help them with their marketing efforts and this case study outlines the things we did to improve the profitability of the business.

Increasing revenue for a bed and breakfast

There are three ways for bed and breakfasts to make more money:

  • Increase the occupancy rate – Less empty rooms mean more money.
  • Increase the amount paid per occupant or per room – When my parents bought the bed and breakfast the rooms were under priced for the market, so they have gradually increased the rates. My dad is a journeyman carpenter and has been making improvements to the property which will allow them to increase the rates further.
  • Add more products / services – Since the property has a huge front yard with a large fountain and sits at the top of a hill overlooking the Moose Jaw river, my parents started offering Wedding services. They also sell gift certificates which are very popular during the holidays.

The Marketing Plan

The previous owners had created a website themselves and submitted it to a few bed and breakfast directories which worked surprisingly well. However, taking the bed and breakfast to the next level would require a marketing plan that included branding, professional web site, SEO, PPC, and off line marketing materials.

Branding

A logo or identity that is both professional and visually appealing can go along way in promoting a company. Often times a logo is the first impression that a potential customer has of a company. My talented grandmother did an amazing pencil-crayon drawing that we used for an icon in the logo and on all marketing materials including the website, business card and brochures.

Website

Since most people find and book a bed and breakfast through the Internet, our marketing strategy had to focus on creating an informative, functional and professional-looking website that converts traffic into sales. In November 2006 we created a web site that reflects the warmth, charm and history of the property. The Wakamow heights Bed & Breakfast web site includes:

  • detailed information with multiple photos of each room/suite
  • ability to check availability and make reservations online
  • information and photos about the history of the house
  • useful information about things to do in Moose Jaw
  • a press section
  • map and directions to the bed and breakfast
  • comments from satisfied guests
  • information on having weddings on the property

SEO

To build high-quality inbound links into the site, we submitted it to some Canadian bed and breakfast directories and a few local directories. We also traded links with a few bed and breakfasts. Our keyword research led us to optimize the site for ‘Moose Jaw Bed and Breakfast’ and similar terms. Currently the site ranks #1 in Yahoo! and MSN for ‘Moose Jaw Bed and Breakfast’ and is second in Google to the largest Canadian bed and breakfast directory which Wakamow Heights is listed in.

PPC

We implemented a Google Adwords Pay Per Click campaign that costs about 20 cents per click and puts us in the top spot for terms related to Moose Jaw Bed and Breakfast. Pay Per Click can be a very effective tool for local businesses considering how inexpensive it can be.

Off line Marketing Materials

The off line marketing materials consist of a two-sided business card with map and directions, and a rack card. The business card is given to guests to pass out to friends and family, and the rack card is put in brochure racks at many of the local business around Moose Jaw.

PR

There was never a public relations plan in place, but my parents have been very fortunate in that their bed and breakfast was featured in a few publications over the past couple months. Chatelaine Magazine included Wakamow Heights Bed & Breakfast in it’s Coast-To-Coast Travel Guide for the July 2007 issue, and the local newspaper did a story on area bed and breakfasts that featured their property first with two large photos including one on the cover. If you have a great product, people will talk about it.

Results

Wakamowheights.com had over 1500 unique visitors in July 2007 compared to 450 in July 2006, and the rate of occupancy is up atleast 150% from what it was a year ago. Implementing the Webervations software which allows users to check availability and make reservations online has been a huge time saver for my mom because she spends a lot less time on the phone taking reservations. This is an example of a simple marketing plan focused primarily on Internet marketing that has had excellent results.

Conclusion

I see a direct relationship between the rise in popularity of bed and breakfasts to the rise in popularity and use of the Internet. Without the Internet most bed and breakfasts would fail miserably, which is why there weren’t many of them 20 years ago. Effective Internet marketing can also allow small businesses like Wakamow Heights Bed & Breakfast to grow very quickly.

Next time you’re passing through Moose Jaw, Canada stop in at Wakamow Heights Bed & Breakfast for a good nights sleep, delicious breakfast and one of a kind experience.

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How to Build a High-Traffic Web Site (or Blog) – part 2

Posted on September 17, 2007. Filed under: Internet marketing articles |

7. Write what is true for you, and learn to live with the consequences.

If the stuff I’ve written on this site means I’ll never be able to run for a political office, I can live with that. I’m willing to write what is true for me, even if it goes against my social conditioning. Being honest is more important to me than being popular. But the irony is that because bold honesty is so rare among civilized humans, in the long run this may be the best traffic-building strategy of all.

People often warn me not to write things that might alienate a portion of my visitors. But somehow I keep doing the opposite and seeing traffic go up, not down. I don’t treat any subjects as taboo or sacred if they’re relevant to personal growth, and that includes diet and religion. It’s no secret that I’m a vegan ex-Catholic. Do I alienate people when I say that torturing and killing defenseless animals for food is wrong? Perhaps. But truth is truth. I happen to think it’s a bad idea to feed cows cement dust and bovine growth hormone, to pack live chickens into warehouses where the ammonia from their feces is strong enough to burn their skin off, and to feed 70% of our grain to livestock while tens of thousands of people die of hunger each day. I also think it’s a bad idea to pay people to perform these actions on my behalf. It really doesn’t matter to me that 999 people out of 1000 disagree with me. Your disagreement with me doesn’t change what went into producing your burger. It’s still a diseased, tortured, chemical-injected cow, one that was doomed to a very life because of a decision you made. And you’re still responsible for your role in that cow’s suffering whether you like it or not.

That last paragraph is a good example of the kind of stuff I write that makes people want to put me in a cage, inject me with hormones, and feed me cement dust. It wouldn’t surprise me terribly if that ends up being my fate.

I write what is true for me, regardless of public opinion. Sometimes I’m in the majority; sometimes I’m not. I’m fully aware that some of my opinions are unpopular, and I’m absolutely fine with that. What I’m not fine with is putting truth to a vote.

I take the time to form my own opinions instead of simply regurgitating what I was taught as a child. And I’m also well aware that there are people spending billions of dollars to make you think that a burger is not a very , diseased, tortured, chemical-injected cow. But I’m going to keep writing to help you remain aware of things like that, even though you may hate me for it. That defensiveness eventually leads to doubt, which leads to change and growth, so it’s perfectly fine. I’m good at dealing with defensiveness.

I don’t worry too much about hurting people’s feelings. Hurt feelings are a step in the right direction for many people. If I’m able to offend you so easily, to me that means you already recognize some truth in what I’ve written, but you aren’t ready to face it consciously yet. If you read something from me that provokes an emotional reaction, then a seed has already been planted. In other words, it’s already too late for you.

My goal isn’t to convince anyone of anything in particular. I’m not an animal rights activist, and I don’t have a religion to promote. My goal is to awaken people to living more consciously. This requires raising people’s awareness across all facets of their lives, so they can make the big decisions for themselves. It requires breaking social conditioning and replacing it with conscious awareness and intention. That’s a big job, but someone has to do it. And if I don’t do it, then I have to admit I’m just part of the problem like all the other hibernating bears.

A lot has been written about the importance of transparency in blogging, and truth is the best transparency of all. Truth creates trust, and trust builds traffic. No games, no gimmicks… just plain old brutal honesty. Even the people that say they hate you will still come back, and eventually those people will become your most ardent supporters. Even if they don’t agree with you, they’ll learn they can trust you and that your intentions are honorable, and trust is more important than agreement.

8. Treat your visitors like real human beings.

Even though I’m sitting at my computer writing this, seemingly alone, I know you’re a real human being reading it on the other end. My apologies to sentient androids who may be reading this years after it’s been written. You aren’t just a number in my web stats. Despite the technology involved and the time-space differential between my writing and your reading, there’s still a human-to-human connection between us that transcends time and space. And that connection matters to me. I feel its presence whenever I do my best writing.

While I imagine being on a stage in front of a million people when deciding which topic to write about, once I actually get going, I imagine having a one-on-one conversation with a friend. This means revealing some of myself and being honest, as the last two points already addressed, but it also means genuinely caring about you as a person. And that’s perhaps one of the best kept secrets of my success as a blogger. I actually care about helping you grow. I want you to become more conscious and aware. I want you to experience less fear in your life. And my concern for your well-being isn’t conditional upon you liking me.

I happen to think we have a lot more similarities than differences. Based on what I know about myself, I imagine you’d like your life to be better tomorrow than it was yesterday. I imagine you’d like to be happier, more fulfilled, and more at peace with yourself. I also imagine you’re living below your potential and could use some help overcoming fear and solving certain problems to enable you to tap more of that potential. And finally, I imagine you wouldn’t believe me if I said you can have it all for only $19.95 (as well you shouldn’t).

The reason I work so hard to create original content and then give it away for free is because I want to help as many people as possible. I genuinely care what happens to this beautiful planet and to the people who live here. It’s possible I actually value your life even more than you do. This is the kind of motivation that never wanes. I sometimes lose sight of it when I get caught up in the details, but the connection is always there, waiting for me to tap into it whenever I want. This provides me with a wellspring of creative ideas and an inexhaustible passion for contribution.

I don’t need to play stupid marketing and sales games with you. There’s nothing for you to buy here. Even if I add some products in the future, I’m not going to try to manipulate you into buying something you don’t need with a slew of false promises. I might make more money in the short-term by doing that, but it would sever our genuine connection, create a wall between us, and reduce the level of impact I’m able to have. Ultimately, that approach would lead to failure for me, at least in terms of how I define success. I can’t help you grow if I violate your trust.

I cannot force anyone to grow who doesn’t want to. But there are a lot of people on this planet who are now ready to let go of low-awareness living and start pushing themselves to the next level of human existence. And they need help to get there because it’s a difficult journey, and there are strong forces working against it.

Real human beings helping real human beings is ultimately what traffic growth is all about. That’s precisely what a link or a referral is. If you align yourself with the intention of genuinely helping people because you care, you’ll soon find yourself with an abundance of traffic.

9. Keep money in its proper place.

Money is important. Obviously I have bills to pay. Money pays for my computer, my high-speed internet connection, my house, and my food. I just returned yesterday from a vacation that money paid for. My wife and I had a great time partly because we didn’t have to worry about money at all on the trip. We did everything we wanted to do without being hampered by a lack of funds. And this web site paid for it.

It’s important that I generate some money from my work, but it’s not necessary that I extract every possible dollar. In fact, relative to its traffic levels, I’m seriously under-monetizing this site. But money is only a means to an end, not an end in itself. Making a positive contribution to the world is a lot more important to me than money. Money can be useful in achieving this objective, but human relationships are far more important. The funny thing is that the less I rely on money, the more of it I seem to have.

I’m already making more money than I need to pay my bills, and my income from this site keeps going up each month. If I simply keep doing what I’m doing, I’ll probably end up becoming fairly wealthy. But money is an extremely weak motivator for me. Very little of what I do today has a profit motive behind it except to the extent that money will fuel more important goals. That tends to confuse certain people because some of my decisions align with earning money, but many don’t. While I do consider myself an entrepreneur (at least it’s less isolating than “guru”), I only see money as a tool for enhancing and expanding my contribution.

While many entrepreneurs pursue money for the purpose of becoming wealthy, I chose a different route. I sought to earn money for the purpose of increasing my freedom. I don’t want to get myself stuck in a pattern of working for money, so I’m constantly turning down opportunities to make money that would restrict my freedom. For example, I don’t do any consulting or coaching. Consequently, my calendar contains very few fixed appointments. This doesn’t mean I’m idle. It just means I spend my time doing what I freely choose to do instead of what others would have me do. I require this level of flexibility to do my best work.

By paying close attention to how I earn money and not just how much I earn, I keep money in its proper place. This allows me to stay focused on my purpose without getting wrapped up in less important concerns like building a brand, closing sales, or doing phony marketing.

I dislike it when other people use one-dimensional sales and marketing tactics on me, so I avoid using these techniques on this site. I’ve sort of unplugged myself from the current capitalistic system and set up a side system of my own that I find much more congruent with conscious living. I would love for other people to have the same level of freedom I enjoy each day. I’m sure I’ll continue to improve my approach over time, but it’s working wonderfully so far. Imagine having a business with no products, no inventory, no sales, and no customers, but still generating an abundant positive cashflow.

Since the income generation is largely on autopilot, I can focus my time and energy on creating content instead of on doing marketing or trying to sell something. And being able to devote so much time to content creation without worrying how I’ll pay my bills makes it a lot easier to build high traffic.

Some business models make it very challenging to build traffic. You have to spend a lot of time and energy just on lead generation, and then maybe you try to monetize those leads by selling a product or service. It’s always an uphill struggle.

I give all my best content away for free. Word of mouth does the rest. So my traffic building strategy is more like flowing downstream. It hasn’t been a struggle for me at all. And once you have sufficient traffic, it isn’t that hard to monetize it without becoming an ogre.

We’ve all heard the expression, “Build a better mousetrap, and they’ll come.” And we’ve also heard marketing and sales people say that this is just plain wrong — you have to market and sell that mousetrap effectively too. I say they’re all wrong. My approach is the equivalent of, “Build a better mousetrap and give it away for free, and they’ll come — and they’ll bring friends too.”

10. If you forget the first nine suggestions, just focus on genuinely helping people, and the rest will take care of itself.

One thing that turns me off about typical self-help marketing is that authors and speakers often position themselves as if they’re the opposite of their audience. I’m successful and you’re not. I’m rich and you’re not. I’m fit and you’re not. You need me because something is lacking in your life, I have exactly what you lack, and if you pay me (and make me even richer and you poorer), I’ll show you how you can have it too. And if it doesn’t work for you, it just means you’re even more of an idiot than the people who provided my testimonials.

I’m sure you’ve heard this sort of nonsense many times before.

All of this I’ve-arrived-and-you-haven’t stuff is stupid. It suggests that life is about destinations and that once you’ve arrived, you’re done growing and can just relax and sip fruity drinks for the rest of your life. But there’s more to life than border crossings. If you go from single to married or from non-millionaire to millionaire, that’s fine and dandy. Crossing the border into parenthood was a big one for me. But that’s only one day of my life, and to be honest, I didn’t have much control over it except for a decision made nine-months earlier (and it seemed like a pretty attractive idea at the time). What about all those other days though?

Growing as a human being is something I work on daily. I’m deeply passionate about my own growth, so naturally I want to share this part of the journey with others. If I start marketing myself with the “I’m successful and you’re not approach,” I hope someone will come put me out of my misery, since that would mean I’m done growing and ready to die. I don’t expect to ever be done growing as long as I exist as a human being. There are always new distinctions to be made and new experiences to enjoy. And yes… plenty of mistakes to be made as well.

One of the great benefits of focusing on helping others is that it gets fear out of the way. Without fear you become free to just be yourself. You’re able to take intelligent risks and remain detached from any specific outcome because the journey is more important to you than the specific stops along the way. Personally it’s not the destinations that excite me but rather the unfolding process of discovery. I love the anticipation of wondering what lies around each new bend.

If we are to help each other, we need to be partners in the pursuit of growth, not opponents. So it makes no sense to put up fake walls between us. The ego needs walls to protect it, but if we can get past the fear-based needs of the ego, we’ll make a lot more progress.

There are plenty of things I could do with this site that would make me more money or grow traffic faster in the short-term, but I won’t do them because they’ll just put more distance between us. I’ll be on my side, you’ll be on your side, and we’ll each be slightly afraid of the other. I’ll be worried that maybe you won’t buy what I’m selling, and you’ll be worried about getting ripped off or taken advantage of. We’ll just be drinking yet another round of fear, which is exactly the opposite of what we need to grow.

One of my biggest challenges in life right now is figuring out how to help enough people switch their primary polarization from fear to love. Our emotions are an energy source for us (they drive our actions), and most of the world is still driven by fear energy. Watching TV news is a good example; we can actually feel energized by watching others suffer. Hurting animals is another example; we eat their fear for breakfast. But there’s another fuel for human consciousness, and perhaps the best way to describe it is unconditional love. This isn’t the squishy emotion of romantic love — it’s a sense of connection to everything that exists and a desire to serve the highest good of all. Unconditional love, when it becomes one’s primary fuel, cultivates fearlessness. In this state you still have the biological fight-or-flight response, but you aren’t driven by emotional worries like fear of failure or fear of rejection. You feel perfectly safe regardless of external circumstances. And when you have this feeling of unconditional safety, you’re truly free to be yourself, to embrace new experiences, and to grow at a very fast pace.

Personal growth is not a zero-sum game. If you grow as a human being, it doesn’t harm me. In fact, ultimately if all of us grow as individuals, it’s going to make this whole planet better for everyone. When enough people switch their primary polarization from fear to unconditional love, this planet will become a true paradise. That’s a good thing for all of us, one that’s more important than all the money in the world.

Perhaps you have a less ambitious goal for building web traffic than raising human consciousness and working towards world peace. That doesn’t matter. You can still make helping others your primary focus, and if you do that, you’ll find it relatively easy to build a high-traffic web site. If you align yourself with serving the highest good of all, you’ll receive plenty of help along the way, and best of all, you’ll deserve it.

Do your best to help your visitors out of genuine concern for their well-being, and they’ll help you build your traffic and even generate a nice income from it. It’s as simple as that.

From a blog

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How to Build a High-Traffic Web Site (or Blog) – part1

Posted on September 17, 2007. Filed under: Internet marketing articles |

Since posting my 2005 traffic figures recently, I’ve received many questions about how I was able to start this web site from scratch and build its traffic to over 700,000 visitors per month (Jan 2006 projection) in about 15 months — without spending any money on marketing or promotion. Building a high-traffic web site was my intention from the very beginning, so I don’t think this result was accidental.

My traffic-building strategy isn’t based on tricks or techniques that will go out of style. It’s mainly about providing genuine value and letting word of mouth do the rest. Sadly, this makes me something of a contrarian today, since I happen to disagree with much of what I’ve seen written about traffic-building elsewhere. I do virtually no marketing for this site at all. My visitors do it for me, not because I trick them into doing it but simply because they want to.

Here are 10 of my best suggestions for building a high traffic web site:

1. Create valuable content.

Is your content worthy of being read by millions of people? Remember that the purpose of content is to provide value to others. Do you provide genuine value, and is it the best you’re capable of providing?

When I sit down to write, I sometimes imagine myself standing on an outdoor concert stage before an audience of a million people. Then I ask myself, “What shall I say to this audience of fellow human beings?” If a million people each spend five minutes on this site, that’s nearly 10 person-years total. I do my best to make my writing worthy of this differential. I don’t always succeed, but this is the mindset that helps me create strong content.

Think about the effect you want your writing to have on people. Since I write about personal growth, I want my writing to change people for the better. I want to expand people’s thinking, to raise their consciousness, and to help them eliminate fear from their lives. If my writing doesn’t change people’s thinking, actions, or awareness, then my value isn’t being transferred well enough.

When you focus on providing real value instead of churning out disposable content, your readers will notice. And they’ll refer others to your site — in droves. I typically see at least 10 new links to my site appearing each day (mostly via trackbacks but also via vanity feeds). I’m not going out and requesting those links — other bloggers just provide them, usually because they’re commenting on something I’ve written. Many fellow bloggers have also honored StevePavlina.com with a general recommendation for the entire site, not just links to my individual blog posts. It’s wonderful to see that kind of feedback.

Strong content is universally valued. It’s hard work to create it, but in the long run it generates lots of long-term referral traffic. I’d rather write one article I’m really proud of than 25 smaller posts. It’s been my experience that the best articles I write will outperform all the forgettable little posts I’ve made. Quality is more important than quantity. Quantity without quality, however, is easier, which is one reason so many people use that strategy. Ultimately, however, the Internet already contains more quantity than any one of us can absorb in our lifetimes, but there will always be a place for good quality content that stands out from the crowd.

If you have nothing of genuine value to offer to a large audience, then you have no need of a high-traffic web site. And if there’s no need for it, you probably won’t get it. Each time you write, focus on creating the best content you can. You’ll get better as you go along, but always do your best. I’ve written some 2000–word articles and then deleted them without posting them because I didn’t feel they were good enough.

2. Create original content.

Virtually everything on this site is my own original content. I rarely post blog entries that merely link to what others are writing. It takes more effort to produce original content, but it’s my preferred long-term strategy. I have no interest in creating a personal development portal to other sites. I want this site to be a final destination, not a middleman.

Consequently, when people arrive here, they often stick around for a while. Chances are good that if you like one of my articles, you may enjoy others. This site now has hundreds of them to choose from. You can visit the articles section to read my (longer) feature articles or the blog archives to see an easy-to-navigate list of all my blog entries since the site launched.

Yes, there’s a lot to read on this site, more than most people can read in a day, but there’s also a lot of value (see rule #1). Some people have told me they’ve read for many hours straight, and they leave as different people. I think anyone who reads my work for several hours straight is going to experience a shift in awareness. When you read a lot of dense, original content from a single person, it’s going to have an impact on you. And this content is written with the intention that it help you grow.

Although I’m not big on competing with others, it’s hard to compete with an original content site. Anyone can start their own personal development web site, but the flavor of this site is unique simply because no one else has had the exact same experiences as me.

While I think sites that mainly post content from others have the potential to build traffic faster in the beginning, I think original content sites have an easier time keeping their traffic, which makes for a more solid, long-term foundation. Not everyone is going to like my work, but for those that do, there’s no substitute.

3. Create timeless content.

While I do occasionally write about time-bound events, the majority of my content is intended to be timeless. I’m aware that anything I write today may still be read by people even after I’m dead. People still quote Aristotle today because his ideas have timeless value, even though he’s been dead for about 2300 years. I think about how my work might influence future generations in addition to my own. What advice shall I pass on to my great grandchildren?

I tend to ignore fads and current events in my writing. Wars, natural disasters, and corrupt politicians have been with us for thousands of years. There are plenty of others who are compelled to write about those things, so I’ll leave that coverage to them.

Will the content you’re creating today still be providing real value in the year 2010? 2100? 4000?

Writing for future generations helps me cut through the fluff and stay focused on the core of my message, which is to help people grow. As long as there are people (even if our bodies are no longer strictly biological), there will be the opportunity for growth, so there’s a chance that at least some of what I’m creating today will still have relevance. And if I can write something that will be relevant to future generations, then it will certainly be relevant and meaningful today.

In terms of traffic building, timeless content connects with people at a deeper level than time-bound content. The latter is meant to be forgotten, while the former is meant to be remembered. We forget yesterday’s news, but we remember those things that have meaning to us. So I strive to write about meanings instead of happenings.

Even though we’re conditioned to believe that news and current events are important, in the grand scheme of things, most of what’s covered by the media is trivial and irrelevant. Very little of today’s news will even be remembered next week, let alone a hundred years from now. Certainly some events are important, but at least 99% of what the media covers is irrelevant fluff when viewed against the backdrop of human history.

Ignore the fluff, and focus on building something with the potential to endure. Write for your children and grandchildren.

4. Write for human beings first, computers second.

A lot has been written about the optimal strategies for strong search engine rankings in terms of posting frequency and post length. But I largely ignore that advice because I write for human beings, not computers.

I write when I have something meaningful to say, and I write as much as it takes to say it. On average I post about five times per week, but I have no set quota. I also write much longer entries than most bloggers. No one has ever accused me of being too brief. My typical blog entry is about 1500–2000 words, and some (like this one) are much longer. Many successful bloggers would recommend I write shorter entries (250–750 words) and post more frequently (20x per week), since that creates more search engine seeds for the same amount of writing. And while I agree with them that such a strategy would generate more search engine traffic, I’m not going to take their advice. To do so would interfere too much with my strategy of delivering genuine value and creating timeless content. I have no interest in cranking out small chunks of disposable content just to please a computer. Anyone can print out an article to read later if they don’t have time to read it now and if the subject is of genuine interest to them. Part of the reason I write longer articles is that even though fewer people will take the time to read them, for those that do the articles are usually much more impactful.

Because of these decisions, my search engine traffic is fairly low compared to other bloggers. Google is my #1 referrer, but it accounts for less than 1.5% of my total traffic. My traffic is extremely decentralized. The vast majority of it comes from links on thousands of other web sites and from direct requests. Ultimately, my traffic grows because people tell other people about this site, either online or offline. I’ve also done very well with social bookmarking sites like del.icio.us, digg.com, and reddit.com because they’re based on personal recommendations. I’ve probably had about a dozen articles hit the del.icio.us popular list within the past year, definitely more than my fair share.

I prefer this traffic-building strategy because it leaves me less vulnerable to shifts in technology. I figure that Google ultimately wants to make it easy for its visitors to find valuable content, so my current strategy should be in alignment with Google’s long-term strategy. My feeling is that Google would be well-served by sending more of its traffic here. But that alignment simply arises from my focus on providing value first and foremost.

5. Know why you want a high-traffic site.

I write because my purpose in life is to help people become more conscious and aware — to grow as human beings. I don’t have a separate job or career other than this. Because my work is driven by this purpose, I have a compelling reason to build a high-traffic web site, one that aligns with my deepest personal values. More web traffic means I can have a bigger impact by reaching more people. And over the course of the next few decades, this influence has the potential to create a positive change that might alter the future direction of human civilization. Most significantly, I want to help humanity move past fear and for us to stop relating to each other through the mechanisms of fear. If I fail, I fail. But I’m not giving up no matter how tough it gets.

Those are big stakes, and it might sound like I’m exaggerating, but this is the level at which I think about my work today. Everything else I do, including building a high traffic web site, is simply a means to that end. Today I’m just planting seeds, and most of them haven’t even sprouted yet. A high traffic web site is just one of the sprouts that came about as a result of pursuing the purpose that drives me. But it is not an end in itself.

What will you do if you succeed in building a high-traffic web site? If you someday find yourself in the privileged position of being able to influence millions of people, what will you say to them? Will you honor and respect this position by using it as a channel to serve the highest good of all, or will you throw that opportunity away to pursue your own fleeting fame and fortune while feeding your audience disposable drivel?

Although I launched this web site in October 2004, I’ve been writing articles since 1999, and feedback has allowed me to understand how small slices of my writing have affected certain people in the long run. After reading something I’ve written, people have quit their jobs, started their own businesses, changed religions, and ended relationships. While some people might find this level of impact ego-gratifying, for me it intensifies my feeling of personal responsibility for my writing. I’ve seen that I’m able to have an impact on people, so I damned well better make it a good one.

This “why” is what drives me. It’s what compels me to go to my computer and write something at 3am and not stop until 10am. I get inspired often. The #1 reason I want more traffic is that it will allow me to help more people. That’s where I direct my ambition for this site, and consequently I’m extremely motivated, which certainly plays a key role in taking action.

6. Let your audience see the real you.

My life and my writing are intricately intertwined, such that it’s impossible to separate the two. When someone reads this web site, they’ll eventually come to know a great deal about me as a person. Usually this creates a skewed and inaccurate impression of who I am today because I change a lot over time — I’m not the same person I was last year — but it’s close enough. Getting to know me makes it easier for people to understand the context of what I write, which means that more value can be transferred in less time.

I’ve told many personal stories on this site, including my most painful and difficult experiences. I don’t do this to be gratuitous but rather because those stories help make a point — that no matter where you find yourself today, you always have the opportunity to grow in some small way, and no matter how small those changes are, they’re going to add up over time to create massive lifelong growth. That’s a lesson we all need to remember.

When I find ways to turn some of my darkest experiences into lessons that might help others in similar situations, it actually transforms those painful memories into joyful ones. They take on new meaning for me, and I can see that there was a positive reason I had to endure such experiences, one that ultimately serves the highest good of all. Oddly, I now find that it was my darkest times that help create the most light for others.

With respect to privacy, I don’t really care much for it. I do respect other people’s right to privacy, so when people tell me personal stories via email, I don’t turn around and re-post them to my blog. But I’m OK with being rather un-private myself. The need for privacy comes from the desire to protect the ego, which is a fear-driven desire, and fear is something I just don’t need in my life. My attitude is that it’s perfectly OK to fail or to be rejected publicly. Trying to appear perfect is nothing but a house of cards that will eventually collapse.

I think allowing people to know the real me makes it possible to build a relationship with my audience that’s based on intimacy and friendship. I dislike seeing people putting me on too much of a pedestal and using labels like “guru” or “overachiever.” Such labels create distance which makes communication harder. They emphasize our differences instead of our similarities. Communication between equals — between friends — is more effective.

More genuine communication means better connections with your audience, which means more repeat traffic and more referral traffic. This isn’t a manipulative game though, and excessive or overly dramatic self-disclosure for the purpose of linkbaiting will only backfire. Your reasons for storytelling must be to benefit your audience. The traffic benefits are a positive side effect.

Collect from a blog

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Beautiful Women Are Traffic Magnets

Posted on September 16, 2007. Filed under: Internet marketing news |

I was told that having beautiful women on a website could really help to increase web traffic. This seems to make sense. After all, guys like looking at beautiful women and women like looking at beautiful women as well. If this was not true, then women’s magazines would not contain as many of pictures of women as the men’s magazines do.

Here are some cute pics.

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Exclusive Interview with Ms. Esther Dyson: The Most Influential Woman on the Internet

Posted on September 7, 2007. Filed under: Interviews with Internet marketing decision-makers |

Esther Dyson

I’m pleased that I can publish on my eMarketing Blog interview that I made with Ms. Esther Dyson, definitely one of the most influential woman on the Internet. Esther Dyson is Editor at Large at CNET Networks, one of the most powerful Internet media companies that own digital assets like Download.com, MP3.com, Com.com etc. She started working at CNET after she had sold her company EDventure Holdings to CNET. She publishes expert articles on Release 1.0 and organizes one of the industry’s best conferences like PC Forum where gather Internet decision-makers like Yahoo co-founder Jerry Yang, Salesforce.com Chairman and CEO Marc Benioff or Marc Zuckerberg, Facebook.com CEO. Esther Dyson was Chairman of ICANN board for 2 years. She is regular speaker on major conferences like AD TECH, World Economic Forum, Shop.org, Comdex usually as a keynote speaker. She is also a well-known investor. Some of her investments are in Meetup.com, Technorati, Delicious and Flickr.

You can find more about Esther Dyson on http://www.release1-0.com or to visit her frequently updated Flickr page on http://www.flickr.com/photos/edyson/

Dejan Bizinger: Internet is much more different from early days in 1995. What do you think about the power that it has today in shaping people views, socialization and shopping habits?

Esther Dyson: The internet gives *people* the power to shape other people’s views and shopping habits. It’s easier for people to find out what like-minded people think about products. It also gives them the ability to find one another.

DB: What is your prediction about the future Internet trends?

EM: Among other things, we will no longer have much anonymity. Although my specialty is the Internet, by 2040 , in the developed world, that won’t distinguish me from any other observer of human behavior. Most information will be on the Internet, whether freely available or not, and most people’s actions will be traceable…if someone with power cares to go to the trouble. The only question is how difficult laws and policies will make it to do so.

But there will be more to this trend than the government spying on innocent victims, or even on they-asked-for-it dissidents. The big questions revolve less around anonymity, pseudonymity or total transparency, and more around societies’ tolerance for diversity on the one hand, and recognition of individuals’ fluidity on the other. Those are the things we need to watch out for, even more than for breaches of privacy. Is it possible to have a tolerant society where much once-private behavior is visible? In fact, is such visibility necessary for tolerance to reign and the range of
acceptable behavior to broaden?

That’s my hope. Because right now, we’re losing anonymity in two opposite ways. On the one hand, we’re losing power to authorities who are demanding ever more information from us – in order to fly, as we pass through tollgates or even just tool down highways, cross borders or even just enter
public buildings. We are also giving up more and more information – wittingly or not – as we shop and tk what else, both offline and online.

Yet on the Internet, we are also jumping at the chance to be famous. People google others, and worry over their own Google rankings. They collect friends on the social network sites and send what used to be family-style Christmas letters out to friends. Even as individuals evince more and more concern about privacy and related issues around identity theft, more and more people are getting onto the Web as themselves, publishing blogs, posting photos, contributing reviews to
ratings sites and revealing all (or so it seems) on dating and social network sites (such as Friendster).

So what’s next? What’s the backlash to all this? Will these trends simply extrapolate smoothly, or what kind of opposite reaction will they provoke?

For starters, I think many people will move pretty rapidly from no identity to multiple identities. Whether you’re simply an individual attempting to remain fluid and not get caught in a single identity (only a studious geek, or only a fun-loving mom or a talented musician) or you’re concerned about privacy and you want multiple identities to throw the authorities off track, ! expect to see more and more people with multiple identities that may or may not be easily traced. (For sure, most such identities will be traceable by authorities with subpoena power, but not by your neighbors, your colleagues or even your prospective employer.)

Nonetheless, our slime trails will become increasingly visible. Here, I think we’ll see a cultural change – a sort of “reputation statute of limitations.” Curiosity will continue (we’re human beings, after all), but there will be a broader understanding of how people can change. (I would love to see websites get better at dating their material, while Google and other search engines could, for example, show recent information in black, while older items would be shown in increasingly lighter shades of grey.)

But the good news is that individuals are gaining power at the expense of anonymity. Not only can they publish their erstwhile secrets: they also publish their wants and offers. The Net is empowering individuals to engage with others not just as consumers picking from what’s on offer, but as active negotiators defining specs for others to meet.

To be sure, that does not require complete identification, but it requires credentials, reputation and the like.

Where does this all lead? Is there safety in numbers? If a million people admit to having smoked dope, or stolen hotel towels or tk, can one do so with impunity?

Here the issue is not so much privacy as accountability on the one hand, and society’s willingness to condone a government that might single out its enemies. That’s a bigger question than privacy. The optimists don’t worry. The pessimists are hiding.

DB: You were ICANN chairman for two years. What is your opinion about the importance of domain names and what do you think about the dot com buzz of selling domains for several million dollars?

ED: I think domain names are not all that important; it’s much more useful to run a good business than to have a good domain name. That said, domain names are still an interesting business, but a competitive one in which it is hard to make money.

DB: Do you think that outsourcing can cause problems for the people living in USA and Western Europe, that they will loose their jobs or have lower salaries? Do you see some country or region that can be a good competitor to India regarding outsourcing?

ED: I think that the US and Western Europe have their own problem, which is a lack of interest in technical education… so that they are falling behind other countries. I see outsourcing as a big opportunity for talented young people in emerging markets, who will one day become good customers for companies in the developed markets. However, the US and other countries do
need to figure out how to help their IT workers handle this change… with retraining, unemployment insurance and other measures. perhaps some of them could train the next generation of students… Others should go to developing markets and apply some of their talents there.

DB: You sold your company EDventure Holdings to CNET. How is it to be a part of one of the biggest Internet media companies?

ED: It gives us many more resources, which is good.

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Exclusive Interview With Mr. Joshua Baer, SKYLIST CEO

Posted on September 7, 2007. Filed under: Interviews with Internet marketing decision-makers |

Joshua Baer, SKYLIST CEO

In this exclusive interview we asked Mr. Joshua Baer, SKYLIST CEO to discuss current trends in email marketing business with the focus on CAN-SPAM and steps that have to be taken in order to minimize SPAM problems.

Joshua Baer’s role in shaping email marketing solutions and best practices is unparalleled. Over the last decade, SKYLIST has displayed outstanding growth and remains private and profitable.
While growing SKYLIST, Josh has also continued to actively contribute to the email community at large. His email community contributions include influential roles in industry standards development forums, authorship, and frequent conference and panel presentations. He is a steering committee member of the Email Service Provider Coalition.

In 1998, Mr. Baer co-authored Internet RFC 2369, establishing a standard way for users to subscribe and unsubscribe from email lists. UnsubCentral is his latest brainchild and spin out company dedicated to aiding CAN-SPAM compliance obligations.


Dejan Bizinger: What do you think about the future of email marketing and email publishing?

Joshua Baer: We just went through a scary dip for past year and half since the enactment of CAN-SPAM and the explosion of affiliate marketing, but the viability of email marketing is starting to climb again as people become more comfortable with the new regulations. CAN-SPAM is helping, as is authentication. People are sending more targeted and personalized mail, rather than high-volume mass mailings, realizing that more is not better when it comes to email.

DB: What do you think about the importance of blogs and RSS in e-publishing?

JB: I think they are still peripheral. There has been hype surrounding it, which has been encouraged by the spam problem, but in essence, it is still fundamentally not push technology, which is what makes email “the killer app.” Email is powerful because its push technology, not pull. If you sign up for something you don’t have to remember to go back and get it.

DB: Do you think that a lot of email newsletters and SPAM that cause email overload will have for the result that less people will include email marketing as an item in their online marketing budget and tactics? What does this mean for list hosting companies such as SKYLIST?

JB: People are increasing budgets now, people feel more confident in the viability of email, as spam solutions continue to emerge and grow stronger.

DB: What is the greatest benefit of email marketing?

JB: The efficiency of cost and feedback. Cost, time and functionality. It costs less and takes less time to produce, deliver and get feedback than ordinary channels and you can get much more clear and detailed feedback. It makes marketing more of a science, less of an art.

DB: SKYLIST is one of the first companies that offered CAN-SPAM compliant product StormPost. How effective is the CAN-SPAM law?

JB: It is important to understand how effective any law can be. Murder is illegal yet people are still murdered every day. The law isn’t the end-all-be-all solution to the problem, but it has helped heightened awareness and encouraged best practices. No law can solve this problem outright; it must be combined with best practices such as authentication and reputation. Solving the spam problem is not about figuring which mail to block, but which legitimate mail to accept.

DB: Do you think that Microsoft SenderID is the first big step in fighting against SPAM? What have to be done more in order to minimize SPAM?

JB: Authentication is the first step, it helps identify legitimate sources, and has cut a wide swath in the amount of fraudulent senders. However, it won’t solve problem by itself. We must build on a foundation of authentication with accreditation and reputation, making it a transparent open process.

DB: Should regular business e-mail be encrypted?

JB: No, encryption of all business email is overkill and unnecessary. In the future, business email will be cryptographically signed, i.e. validated but not necessarily encrypted.

DB: Please describe your three products: StormPost Hosting, StormPost Software and UnsubCentral (target companies for each product) and how they help companies to do their email marketing more effectively?

JB: The StormPost™ Software License is a top choice for organizations who want an internal solution that will deliver both email campaigns and cost savings.
StormPost customer benefits include:

• Enterprise level email database marketing capabilities.
• Unparalleled scalability and deliverability
• Advanced personalization, targeting, tracking, and reporting
• Unique reporting shows true delivery

It comes in three levels, Small-Medium Business, Enterprise and Service Provider.

StormPost Hosted Edition ( ASP ) provides self-service access to secure and private email marketing accounts. All StormPost hosted accounts are managed by a dedicated account team that provides both technical and ISP relationship support.
Hosted customer benefits include:

• Dedicated account management
• 24 / 7 emergency support
• No hardware costs
• Free, immediate upgrades
• Sliding scale CPM pricing based on email message delivery requirements

Fore more information on the StormPost Licensed and Hosted forms, please visit www.skylist.com.

UnsubCentral, Inc. provides email suppression and consumer preference management solutions to leading advertisers, ad networks, and affiliate networks. The Austin, Texas-based corporation offers solutions that create a secure environment for managing opt-out lists across the enterprise, affiliates and various third parties. Integrated with major affiliate networks and email service providers and reviewed by TRUSTe, the solutions ensure clients comply with the CAN-SPAM Act and data privacy requirements. For more information, please visit www.unsubcentral.com.

DB: You are a steering committee member of the Email Service Provider Coalition. Please tell us the main roles and activities of ESPC.

JB: The Email Service Provider Coalition is a cooperative group of industry leaders working to create solutions to the continued proliferation of spam and the emerging problem of deliverability. Our membership provides volume mail delivery services to an estimated 250,000 clients – representing the full breadth of the U.S. marketplace. The ESPC is currently working on solutions to spam and deliverability concerns through a combination of legislative advocacy, technological development, and industry standards.

The ESPC is comprised of three sub-committees:

Legislative – This committee guides our lobbying efforts on federal and state spam legislation. We provide direct advocacy before the FTC and Congress. For state issues, we have partnered with the Internet Alliance for monitoring and coordination. The geographic breadth of our group has allowed us to respond to many state spam statues directly, using members on the ground. This group meets weekly, with ad hoc meetings called from time to time to respond to state developments.

Technology – This committee is evaluating and developing technological solutions that would allow more accurate responses to spam (and fewer false positives). A technical working group has been formed within this group to explore and propose such solutions. This group meets as needed, with in-person meetings scheduled occasionally

Communications – This committee provides broad public affairs strategy for the Coalition. We have been actively working to highlight the consumer harm associated with false positives and filtering. This committee also provides guidance and support for our press relations.

DB: Describe a day in the life of Joshua Baer?

JB: A day in the life of Joshua Baer begins at 6am and usually consists of talking to customers and prospects as well as industry leaders. Many days involve press or analyst interviews and very often I am traveling all over the world to speak at conferences and trade shows.

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Exclusive Interview With Ms. Anne Holland, MarketingSherpa President

Posted on September 7, 2007. Filed under: Interviews with Internet marketing decision-makers |

{Author’s Note: This interview was made earlier this year for my blog on Blogspot}

MarketingSherpa

Anne Holland, president of MarketingSherpa is an 19-year publishing industry veteran, previously served as the Head of Marketing for Holland Phillips Business Media, a $100 million publishing company. She helped launch one of the world’s first profitable subscription sites in 1995, and the trade publications Interactive Marketing News in 1994 and MIN’s New Media in 1995. Holland founded MarketingSherpa, a privately held media company, in January 2000 with the mission of helping marketers, advertisers and PR pros improve results, by publishing real-world marketing data and Case Studies.

Dejan Bizinger: Your company MarketingSherpa is highly recognized as one of the best e-marketing resourceS. What is the secret of your success?

Anne Holland: I wish there was a secret because that would make our work easier! But, it’s just very, very hard work and persistence. Everyone asks how we get our exclusive case studies. I find that very funny because it’s nothing more than good old fashioned journalism.

DB: You sell many publications in your SherpaStore, both in printed and in PDF version. What is the ratio in buying between printed and PDF books?

AH: Good question! It started out at about 60% printed, 40% PDF. But now five years later it’s about 30% printed and 70% PDF. The length of a report can affect things — some of our reports are more than 200 pages long and lots of people don’t want to print that many pages out.

DB: What is your opinion about future Internet trends?

AH: RSS will not replace email, it’s a supplement that has yet to be tested in mainstream. Search marketing will continue to grow substantially as a staple in most marketer’s budgets. Email is now fairly steady as a budget item and marketing tactic, I expect slight growth. Same for banners and contextual ads. Rich media and behavioral ads will growth 30% or more in the next two years and then level off. Wireless ads may finally penetrate US marketplace as the big cellular providers merge. And ecommerce will continue to grow outside the US as international consumers learn to trust online and credit cards.

DB: How much do you work daily?

AH: I work pretty typical hours for a president of a publishing company… I get in around 9:15am and leave around 7pm, and don’t ever take lunch. Now that we’re in our fifth year and fairly established, I only work weekends occasionally. Plus I’ll be able to take my first vacation in five years this summer in conjunction with a speaking engagement in Zadar Croatia!

DB: What is the last book you read?

AH: I’m reading several books about Yugoslavia, Serbia and Croatia to prepare for my trip.

DB: What is the favorite reward for yourself?

AH: Hiking in the wilderness and in national parks.

DB: What is your favorite web site?

AH: Mapquest.com – I use it constantly.

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Exclusive Interview With Mr. Douglas Rushkoff

Posted on September 7, 2007. Filed under: Interviews with Internet marketing decision-makers |

Douglas Rushkoff

I have made this interview with Douglas Rushkoff in 2005. for the purpose of publishing in one computer magazine. Now, I’m publishing it on Emarketing Blog.

Winner of the first Neil Postman award for Career Achievement in Public Intellectual Activity, Douglas Rushkoff is an author, teacher, and documentarian who focuses on the ways people, cultures, and institutions create, share, and influence each other’s values. He sees “media” as the landscape where this interaction takes place, and “literacy” as the ability to participate consciously in it.

His ten best-selling books on new media and popular culture have been translated to over thirty languages. They include Cyberia, Media Virus, Playing the Future, Nothing Sacred: The Truth about Judaism, and Coercion, winner of the Marshall Mcluhan Award for best media book. Rushkoff also wrote the acclaimed novels Ecstasy Club and Exit Strategy and graphic novel, Club Zero-G. He has just finished a book for HarperBusiness, applying renaissance principles to today’s complex economic landscape, Get Back in the Box: Innovation from the Inside Out. He’s now writing a monthly comic book for Vertigo called Testament.

You can find more info about Douglas Rushkoff on http://www.rushkoff.com

Dejan Bizinger: From 2002. blogs are hot topic. There was and there is much hype related to blogs. At one side many people still doesn’t know what blog is and on the other side blog was chosen for the best word for the previous year. Why are blogs important and for whom?

Douglas Rushkoff: Blogger, one of the original blogging tools, is really just an interface for making websites. The beauty of the web is that anyone can publish pages. The problem with the web is that many people don’t understand any html. And they don’t understand how sites are hosted, or how to make and maintain one.
Blogger allows anyone to create a web page very easily.

The people at Blogger, very correctly, assumed that most people creating personal web pages would want to be able to update a single page very easily. And that’s what blogs are – pages that are updated on a regular basis. So this tended to favor daily journals by individuals, or what have
become known as web logs.

So a “blog” has come to mean web log. What’s the difference between a web site and a web log? Not very much, except that a web log tends to be an individual’s journal or thoughts, and not, say, an e-commerce site. Blogger would not be a good tool for creating Amazon.com.

DB: Blogs were buzzword, now they are mainstream. It is now similar case with RSS and podcasting, they are still buzzwords. Do you think that RSS and podcasting will also become mainstream?

DR: Blogs are not mainstream, really. They are simply known about in the mainstream. This is because some major news stories were forced open by web logs. Matt Drudge’s page predates “blogs,” but really takes that form: an individual sharing his thoughts and observations, unregulated by a major media company. Because blogs can break stories and challenge major media coverage, they get coverage, themselves.

I think podcasting will become popular and well-known, because it is a very clever use of an existing device. RSS feeds are a more traditional use of the Internet – more like newsgroup readers. I think only the more advanced users – those of us who don’t really like the web so much as interface –
will be into them.

DB: Do you think that bloggers should include ads on their blogs and RSS feeds? Can this make an influence on their independence?

DR: Do I think they should? I think people should be nice to one another and not murder. Aside from things like that, I wouldn’t dictate to people what they should or shouldn’t do. All I would ever ask – and Americans still equate this view with communism – is that bloggers evaluate how posting
advertisements might influence the way they write. They must look at the reasons they write their blog, what they hope to get out of it, and whether turning it into a business will compromise their original goal.

Once a person is being paid for the number of hits his website gets, it can tend to influence the way he writes stories, and kinds of stories he writes. This is not a crime; it’s just a property of the media ecology.

If a blogger comes to depend on the income his blog generates, then this will in turn make the blog less completely independent of commercial influences. Again, I repeat for clarity: I am not making a value judgment on this. I simply want people to accept that turning a blog into a business is
a choice with repercussions.

The same is true for me: some books I write for free, others I write for money. Although I want the ones I write for money to be completely free of commercial influence, I can’t help but write differently when I have a boss to write for.

DB: Some people that became famous bloggers started working for some traditional media like newspapers. Do you think that there will be more and more similar cases?

DR: It may prove to be a kind of “minor league” for writers who want to become professional columnists, sure. In that sense it could make the editorial space more of a meritocracy. On the other hand, it may just lead to the most extreme and sensationalist writers getting into the newspapers. Sometimes, an editorial board is a better judge of columnnists than the public.

DB: Some people say that there is no money in blogs. If that so, how blogs became so commercial?

DR: Things can become very commercial without producing successful revenues. The web became very commercial, even though most businesses lost all their money. The United States is extremely commercial, even though it is now losing money.

DB: More and more CEOs and high-level executives start blogging. Do you think that this way of communication is better than a classic PR?

DR: “Better” is a tricky word. I think it is different than classic PR, and will probably prove the most effective when the CEO actually writes the blog instead of letting his blog-writer do it. George Bush doesn’t write his own blog, so what’s the point? If people don’t believe these are the real blogs
of these important executives, then they will be pretty useless.

DB: Please name several blogs that you read on a daily basis?

DR: None, really. I don’t have time to read blogs on a daily basis. I check in
weekly to a few of my best friends’, maybe, but usually just go to a blog if
I am emailed about a particular post.

Popularity: 6% [?]

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Why All Marketers Can Learn from Apple

Posted on September 7, 2007. Filed under: Internet marketing news |

While I left Motorola earlier this year and am currently am on contract to a leading B2B/B2C brand not in the cell phone industry, I continue to be fascinated by the competitive activity in the cell phone space. Like many others, I am particularly fascinated by Apple. But for me, my fascination isn’t merely because of a cool new music cell phone. My interest is due to Apple’s marketing and brand strategies. Today, Reuters reports that, in the US, during its first full month for sale (July), the iPhone has outsold all smartphone models. Impressive, but not surprising.

Apple has shown brand and marketing management expertise with the iPod and the iPhone (which I consider a kind of brand extension of the iPod) from which all marketers, b2c and b2b, can learn a great deal. Apple provides an excellent example of the care and feeding needed to build and sustain a strong brand. Apple has done this by continually moving the iPod brand forward (think Nano then iPhone) and never milking the brand’s success; it’s part of why it is very difficult to steal the iPod’s market share. Apple has also done some smart brand extensions which always maintain the integrity of the core brand (or subrands, if you prefer).

Brand loyalty for iPod is complex connected to many factors: product design, user interface, software, the coolness factor (it’s the cool music player to be seen with) — the fact that a user gets locked in with his/her music collection being in the iTunes format, etc. Of course, you can buy a competitor mp3 player with more features for less money than the iPod — iPod commands a premium price, always.

Sustaining the Apple iPod music player brand meant moving the product forward, which inevitably led to the iPhone, the convergence of the music / media player and a cell phone. Apple knew it was where portable music players were headed and wanted to cannibalize iPod sales before someone else became first to mind in the space (of course, Apple didn’t make the first cell phone that played music, however, it quickly has become first in mind when it comes to cell phones that play music).

Part of managing the brand is managing pricing, and Apple has always smartly exercised strong control over it’s retail pricing that most marketers should look at with envy. It’s hard to imagine a premium brand selling for $49 – $99 USD (the price range of many subsidized cell phones in the US) and I am confident that Apple is too smart to let that happen to the iPhone (I am also confident that cell phone carriers appreciate this; like any business, they want products they can sell for a nice profit). With iPhone, Apple has innovated in this area too. In the US, cell phone carriers (AT&T, Verizon, Sprint, etc.) have traditionally subsidized the cost of cell phones looking to service for their profit. Not with the iPhone. Reports are that Apple has ensured that AT&T is making a sizable margin on the iPhone. That’s smart for both companies. After all, any business is more likely to push a brand they make a profit from rather than a loss — it’s a great differentiator and incentive for the carrier to push the product, especially when you combine that with strong consumer demand for the phone. I’ve always believed that cell phone makers should have been working hard to do this (i.e., offering carriers high end phones they can sell at a profit), instead of marching to the beat of what’s always been done by pumping out more subsidized cell phones. It’s interesting that it took a new marketing and brand savvy entrant into the cell phone market to accomplish this.

Even more, only several years ago brands didn’t mean much to carriers. I remember seeing a research study a carrier had done that showed that more than 70 percent of consumers could be switched to a different brand while at the carrier’s retail store. I seriously doubt this will apply to consumers coming in — and even switching carriers — to purchase an iPhone. I am confident those consumers are not going to be easily switched.

I’m also confident that Apple and its iPhone will change the cell phone game in many ways.

Kudos Mr. Jobs. Brilliant work. I am eagerly anticipating your next move.

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Why All Marketers Can Learn from Apple

Posted on September 7, 2007. Filed under: Internet marketing news |

While I left Motorola earlier this year and am currently am on contract to a leading B2B/B2C brand not in the cell phone industry, I continue to be fascinated by the competitive activity in the cell phone space. Like many others, I am particularly fascinated by Apple. But for me, my fascination isn’t merely because of a cool new music cell phone. My interest is due to Apple’s marketing and brand strategies. Today, Reuters reports that, in the US, during its first full month for sale (July), the iPhone has outsold all smartphone models. Impressive, but not surprising.

Apple has shown brand and marketing management expertise with the iPod and the iPhone (which I consider a kind of brand extension of the iPod) from which all marketers, b2c and b2b, can learn a great deal. Apple provides an excellent example of the care and feeding needed to build and sustain a strong brand. Apple has done this by continually moving the iPod brand forward (think Nano then iPhone) and never milking the brand’s success; it’s part of why it is very difficult to steal the iPod’s market share. Apple has also done some smart brand extensions which always maintain the integrity of the core brand (or subrands, if you prefer).

Brand loyalty for iPod is complex connected to many factors: product design, user interface, software, the coolness factor (it’s the cool music player to be seen with) — the fact that a user gets locked in with his/her music collection being in the iTunes format, etc. Of course, you can buy a competitor mp3 player with more features for less money than the iPod — iPod commands a premium price, always.

Sustaining the Apple iPod music player brand meant moving the product forward, which inevitably led to the iPhone, the convergence of the music / media player and a cell phone. Apple knew it was where portable music players were headed and wanted to cannibalize iPod sales before someone else became first to mind in the space (of course, Apple didn’t make the first cell phone that played music, however, it quickly has become first in mind when it comes to cell phones that play music).

Part of managing the brand is managing pricing, and Apple has always smartly exercised strong control over it’s retail pricing that most marketers should look at with envy. It’s hard to imagine a premium brand selling for $49 – $99 USD (the price range of many subsidized cell phones in the US) and I am confident that Apple is too smart to let that happen to the iPhone (I am also confident that cell phone carriers appreciate this; like any business, they want products they can sell for a nice profit). With iPhone, Apple has innovated in this area too. In the US, cell phone carriers (AT&T, Verizon, Sprint, etc.) have traditionally subsidized the cost of cell phones looking to service for their profit. Not with the iPhone. Reports are that Apple has ensured that AT&T is making a sizable margin on the iPhone. That’s smart for both companies. After all, any business is more likely to push a brand they make a profit from rather than a loss — it’s a great differentiator and incentive for the carrier to push the product, especially when you combine that with strong consumer demand for the phone. I’ve always believed that cell phone makers should have been working hard to do this (i.e., offering carriers high end phones they can sell at a profit), instead of marching to the beat of what’s always been done by pumping out more subsidized cell phones. It’s interesting that it took a new marketing and brand savvy entrant into the cell phone market to accomplish this.

Even more, only several years ago brands didn’t mean much to carriers. I remember seeing a research study a carrier had done that showed that more than 70 percent of consumers could be switched to a different brand while at the carrier’s retail store. I seriously doubt this will apply to consumers coming in — and even switching carriers — to purchase an iPhone. I am confident those consumers are not going to be easily switched.

I’m also confident that Apple and its iPhone will change the cell phone game in many ways.

Kudos Mr. Jobs. Brilliant work. I am eagerly anticipating your next move.

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