I was awed by the creators of Netflix bold endeavor to supply the masses with current DVDs at an $88 burn without a guarantee those customers would return and to trust their product enough to determine this was a good investment. How can you do that??? The math became too much for me and all I could think as I read - is how did they know it would work? That is a big gamble!
Then I began thinking about our current project and the notion that this website is selling ads... her math made more sense to me... provided her burn rate (the first month free) does not extend beyond the first month and only month.
I learned about PageRankings and AdWords from a friend trying to sell swimsuits online and how hard it is to get on the front page of amazon or google. That again was intriguing and a component of the Web I had not considered. I for some reason do not think of the internet as a business - but that is exactly what it is... for example this blog we are all using is free. Why is it here? What do the creators of blogger.com get from us using their site to post our reading responses? Do not get me wrong... I love the free service... but where is the profit for the creators and managers of such a site? I use so many FREE sites I often do not think of the expense and potential profit each of these sites offer.
I need more help with longtail searches... not sure what those are... I will YouTube that tonight... along with many more ideas.
As for Neuro Web Design - this book just confirmed I am a sucker! Chapter 7 - confirmed I fall prey to formula for building commitment like nobody's business. Here is an example: This summer I came to a friends dissertation presentation. I walked past the Apple Store (I hear you sighing Dr. Howard) and they were having a SALE!!! If I bought a computer that week, I could get a FREE printer and a FREE ipod touch. Hummm. I thought. My children really want an ipod touch... this would be a good way to knock part of a christmas present out... and a FREE printer... this is too good to be true. So I overlook the point that I could buy 2 PC laptops for the price of one MAC because I could get this FREE ipod as well as a FREE printer. Okay they were not free... I had to pay for them and then go to the website to get a refund. Which too me many more weeks than I care to admit to finally get done and I probably spent that much on interest before I finally got my FREE items refunded... sucker. To make matters worse... we now have a new ipod sitting in a drawer, but my husband has upgraded his iphone - passing his old iphone (which is an ipod touch without phone hook up) to the 7 year old and the 10 year old will get my upgrade as soon as I upgrade my phone)... so my FREE incentive is sitting in a drawer with NO one to use it.
Chapter 8 - made me think about the JFK vs Nixon debate - the first televised debate and Americans were first confronted with a very young tanned handsome John F. Kennedy juxtaposed with an old, pale sweaty Nixon... Can you guess who won? Look at Obama vs McCain - who did most voters identify with? The younger more charismatic candidate.... there is a dissertation topic... how often do the younger or more attractive candidates win in politics? I bet this has already been done... but interesting nonetheless...
I'm a sucker as well. I bought a new computer and got a free iPod touch. :-) But I use my iPod almost every day for running, so at least mine is in use.
ReplyDeleteI'm still not sure I totally understand PageRankings and AdWords. What I do understand of AdWords makes me hate it very much. A couple of years ago I got my credit card statement, and there was a $250 and a $400 charge with "AdWords" next to it. I had no idea how they were charged to my account! At that point, I'd never even heard of AdWords. After weeks of faxes, phone calls and emails of my explaining to Google that A) I do not own a business B) Therefore, I do not advertise this business and C) Therefore, I do not use Adwords, they finally refunded my money.
During all of the mess, I googled the charges and realized that hundreds of people just like me were getting charged unfairly. Google made up some excuse that it was credit card fraud, but that didn't make me think any better of them.
We've gotten a lot of questions from clients at work lately about being searched and googled, and the value of this. Fortunately at this point, if you search "Columbia SC magazine," ours is the first to pop up. We don't pay for this; we're just lucky it worked out this way. I keep waiting for one of our competitors to start paying for it. That will finally get my boss interested in all of "that crazy Internet stuff" – hopefully.
Reed,
ReplyDeleteIts funny you mention presidential races in your post. I remember when Kerry was running and one of the first thoughts that ran through my mind when I saw him on TV was "Wow...I don't think I'm going to vote for him. He is much to tan to be doing ANYTHING constructive. He probably sits in a tanning bed all day. I don't want him running my country. We'd have to pay out the wazoo just for his tanning bill..."
I had no thought whatsoever about his ability to lead the country. My only concern was about his obviously fake tan and how he was going to run a country AND maintain that tan. Its a horrible sentiment, but its true.
Politics aside, I was thinking back over my career as a waitress while reading this chapter. Sometimes when I go in to work, I have no desire to put on makeup or fix my hair or in any way, shape, or form "prettify" myself for work. On those days I make less money in tips. I even made a $20 tip once just for taking a group of people to their table (granted the customer was a regular, but he rarely even tips me that much when I wait on him! Of course, I had done my hair and makeup that day...) Its amazing to see this kind of thing in practice...and also a little scary. Just think...all we need is for ditzy Miss Hooters 2010 to jump in the next presidential race and we might as well all move to Canada!
There have been many times that I have wondered, "how in the heck does that website make any money?" Obviously, it must bedue to advertising in most cases,although I often connot find the ads...an ongoing mystery. I admit to being a sucker as well. The upselling strategy is sheer genius if you ask me. Another phenomenon with the internet is its limitlessness. Nowadays, if you can think it, you can find it online (and often have it in your hand in 2 days). It was definitely enlightening to read about the strategies that are used to get our attention.
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