3 ms·

SEO-driven businesses are super fun to work on and run -- I have a few sites that rank for informational queries and thus get a decent amount of search traffic

SEO-driven businesses are super fun to work on and run -- I have a few sites that rank for informational queries and thus get a decent amount of search traffic and ad revenue because of it. At scale, it can quickly become highly lucrative. HOWEVER, and perhaps call me a giant wuss, but when you're at the mercy of not only an algorithm but also a savvy business, it's a pretty dangerous bet to hedge it all on search traffic. Coupon codes are one of those things I could easily see appearing at the top of SERPs in no time courtesy of Google. "Credit card comparisons" and other searches like it are a massively profitable keyword to rank for. But take a peek now and you'll see Google threw their hat into the ring, flipped one switch and magically appear above all organic rankings. They're doing the same thing with travel, weather, you name it. I can't sit here and argue it's unfair, it's their yard, they make the rules. And truthfully, as a user, I completely applaud Google for providing these services, I love the one stop shop and trustworthy nature of their results. As a marketer, I'm very, very wary to place any huge bets on any sort of long term business model relying on rankings. Should it be a tactic in your strategy? Absolutely. But diversification here is sure going to save a lot of headaches down the road. But at the end of the day, as far as RetailMeNot goes, get it while it's good I suppose.

ripberge 13y ago
"SEO-driven businesses are super fun to work on and run" Until they're not. I think this is true when you run one of these as a hobby and you look it as getting something for nothing. If you make your livelihood doing it and Google changes something your whole life can change for the worse in a heartbeat. Then you're totally helpless. It's the exact opposite of fun.
- sharkweek 13y ago
  You have summarized the remainder of my comment after that quote - I would never rely on any of my pet projects as actual income; my wife jokes that it's magic internet money (she thinks it's the stupidest thing, in a humorous way of course). I'm not quitting my day job for this stuff in case the faucet gets shut off one day. Some people take the risk, but I could never sleep at night knowing I could randomly wake up one day in the proverbial black hole of "page 2" search results.
jaredmck 13y ago
Probably a good time to mention that Google Ventures invested in RetailMeNot. I think keeping these kind of coupon codes as a %rev affiliate model rather than CPC ads makes it easier to justify the high level of spending (much of which is cannabilizing other marketing channels) - if it was more directly comparable to adwords & Product Listing Ads CPC-based costs, I think more large brands would move faster to cut the wasteful spending going on in these programs. Right now many rationalize it as "4% of revenue is a great acq cost" - but it's not a true acquisition cost as you already acquired many of these customers and if the affiliate sites didn't exist, 99% of these sales would still happen. If you're a pure SEO built company, are you really betting it all on SEO? Without it you'd have no company, and if it weren't risky, there would be no opportunity left.
- beagle3 13y ago
  > you already acquired many of these customers and if the affiliate sites didn't exist, 99% of these sales would still happen. That's only true for a small number of vendors (those that are "unique" in a relevant way, such as clothing brands). For everyone else, it's a "Red Queen" style race, where you have to run just to stay in the same place : you have to do it, because someone else did; if no one or everyone does, nothing changes - but if only some do, those who do have an advantage.
Gustomaximus 13y ago
Also if you think of this from a retailers POV, they want to give as little commission to RetailMeNot as possible. From their view most customers are on the site ready to buy anyway and now just want to see if they can get a better deal cause they saw 'promo code' on the buy form. If a large company says ok RetailMeNot we're going to pay you 2% instead of 4% what can RetailMeNot do? They can refuse the offer and lose all revenue from this retailer, only to have Google search learn people prefer to go to their competitor site who still has their coupons or take the cut. I dont see them having a lot of negotiating power. Also if anyone wants an idea, create a browser extension that opens a dropdown on sites that have promo-codes displaying whats available. It would be a much better experience than going to a new tab and searching.

ripberge 13y ago

"SEO-driven businesses are super fun to work on and run" Until they're not. I think this is true when you run one of these as a hobby and you look it as getting something for nothing. If you make your livelihood doing it and Google changes something your whole life can change for the worse in a heartbeat. Then you're totally helpless. It's the exact opposite of fun.

sharkweek 13y ago
You have summarized the remainder of my comment after that quote - I would never rely on any of my pet projects as actual income; my wife jokes that it's magic internet money (she thinks it's the stupidest thing, in a humorous way of course). I'm not quitting my day job for this stuff in case the faucet gets shut off one day. Some people take the risk, but I could never sleep at night knowing I could randomly wake up one day in the proverbial black hole of "page 2" search results.

jaredmck 13y ago

Probably a good time to mention that Google Ventures invested in RetailMeNot. I think keeping these kind of coupon codes as a %rev affiliate model rather than CPC ads makes it easier to justify the high level of spending (much of which is cannabilizing other marketing channels) - if it was more directly comparable to adwords & Product Listing Ads CPC-based costs, I think more large brands would move faster to cut the wasteful spending going on in these programs. Right now many rationalize it as "4% of revenue is a great acq cost" - but it's not a true acquisition cost as you already acquired many of these customers and if the affiliate sites didn't exist, 99% of these sales would still happen. If you're a pure SEO built company, are you really betting it all on SEO? Without it you'd have no company, and if it weren't risky, there would be no opportunity left.

beagle3 13y ago
> you already acquired many of these customers and if the affiliate sites didn't exist, 99% of these sales would still happen. That's only true for a small number of vendors (those that are "unique" in a relevant way, such as clothing brands). For everyone else, it's a "Red Queen" style race, where you have to run just to stay in the same place : you have to do it, because someone else did; if no one or everyone does, nothing changes - but if only some do, those who do have an advantage.

Gustomaximus 13y ago

Also if you think of this from a retailers POV, they want to give as little commission to RetailMeNot as possible. From their view most customers are on the site ready to buy anyway and now just want to see if they can get a better deal cause they saw 'promo code' on the buy form. If a large company says ok RetailMeNot we're going to pay you 2% instead of 4% what can RetailMeNot do? They can refuse the offer and lose all revenue from this retailer, only to have Google search learn people prefer to go to their competitor site who still has their coupons or take the cut. I dont see them having a lot of negotiating power. Also if anyone wants an idea, create a browser extension that opens a dropdown on sites that have promo-codes displaying whats available. It would be a much better experience than going to a new tab and searching.