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Old 10-27-2007, 07:39 AM
activeco activeco is offline
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Default Re: If You Love Google, You Will Love This

Kgun, it is very well known among insiders that Google's technical solutions are superb in the industry. In fact they hold a number of nice patents in the area of coping with extreme traffic in a timely manner and similar stuff.

But it is not what average Joe knows about Google, niether it makes their business model special. They have been constantly faced with various technical challenges and they solve it very well.

The Google's BUSINESS is advertising, which provides them with more than 90% of their sales and profits.
And how their advertising model works?

For advertisers:
- You have no guarantee of any kind
- You don't know how much a click on your ad will actually cost
- Even if you spend the most money, you have no guarantee to be in front of your competition
- The very same campaign could produce very different results, based on unknown factors
- It is almost impossible to make decent projections for the future

For publishers in the Content Network:
- You have no guarantee of any kind
- You don't know how much you earn with a click on your site
- The (quality) growth of your traffic doesn't necessarily translate into more Adsense earnings
- The very same Adsense ads/data could produce very different results, based on unknown factors
- It is almost impossible to make decent projections for the future

There is one legal statement that we miss here and it comes rightly from the financial markets trading or gambling: "Past performance is no guarantee of future results".

So, if someone comes to you with a similar business proposal, how would you react to it?
Maybe positive if it is a member of your closest family or a trusted friend. But from a stock market listed company?
It's only trust they have and I don't say it's nothing. I still appreciate their values.
__________________
Impossible? You just underestimate the time.

Last edited by activeco; 10-27-2007 at 07:43 AM.
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