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Archive for May, 2008

published: May 22nd, 2008

SEO and the Cobbler’s Children

Category General | 5 comments »

Search engine optimization has been around for over a decade now, and there are scads of new companies claiming to offer the service each day. The market is large, and the opportunities are there for any firm that can develop a reputation for excellence.

However, there has long been one excuse that some unskilled search engine optimization companies use when they are asked about SEO results for their own site – the Cobbler’s Children excuse.

You’ve all heard it – the cobbler’s kids are the only ones in the neighborhood with worn down shoes because dad is too busy working on everyone else’s shoes. So goes the argument that some SEO firms make: “We’re too busy working on client sites to get results on our own sites”. Or “The SEO industry is different – since optimization is the business that we are in, it’s too competitive to be a practical marketing channel for us.”

Which is, frankly, rather silly.

If someone is trying to sell you on a service that they offer but they are not using the service themselves, what does that tell you about the belief they have in the value of their offering? And if they say that optimization for popular phrases (like “search engine optimization company” and “internet marketing companies”) is not feasible, wouldn’t it make sense to ask why? After all, somebody will be showing up for those results. Why not them?

The next time an “SEO Firm” tells you that they are too busy working on client sites to get results for their own, or that the field that they are in is too competitive for them to take advantage of their own services, picture a calculator salesman relying on an abacus for work.

It’s really time for firms to practice what they preach, or to shut down their practice altogether.

Popularity: 11% [?]

published: May 5th, 2008

Microsoft and Yahoo – Russian Roulette

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As was announced Sunday, Microsoft is withdrawing its bid for Yahoo, which caused Yahoo shares to plummet today. But I’m guessing we haven’t heard the end of this story.

Microsoft CEO Steve Ballmer knew that the withdrawal of the bid would cause Yahoo shares to drop substantially. I’m sure that he isn’t unhappy about it – this serves several purposes for him.

First of all, many current shareholders are going to be angry at the sudden (paper) loss. This means that Yahoo had better deliver in the next earnings period unless they can strike up a deal with another prominent player. As I mentioned in an earlier posting, the flirtation with Google causes all sorts of regulatory hurdles – not impossible to overcome, but certainly not very easy either.

Yahoo bought itself a bit of time by reporting excellent earnings and revenue while the deal was up in the air. This led some analysts to think that Microsoft would raise the price they were willing to pay.

But as anyone who has ever worked for a public company knows, there are legal ways to make one quarter look better at the expense of a subsequent quarter (or the reverse – tank one quarter so the next can look excellent). Yes, there are plenty of fiscal maneuvers, but when it all boils down to it, it’s simply a matter of when you recognize revenue.

I’m sure Ballmer knows this. If Yahoo’s revenues and earnings come out flat next quarter (or worse), there will probably be no stopping Microsoft from taking over, probably at a lesser price than the original bid.

The ball is squarely in Yahoo’s court. If next quarter earnings are not going to show accelerated growth, they’d be wise to have a different deal in place if Yahoo doesn’t want Ballmer all over their Yang.

Popularity: 9% [?]