If there were ever a post for today that really needed to be published, UnStuckDigital’s new post Minimizing Risk in Small Business is it.
When the economy is sliding that is NOT the time to pull back - it IS the time to be VERY pro-active. While other businesses are cutting back those who take calculated risks will benefit.
Now IS the time to collaborate with those who know what works and what doesn’t. If you don’t know where to invest wisely you must rely on someone who does. They will know because they have done it AND MEASURED THE RESULTS. Don’t listen to projections; ask how they know. Don’t agree to anything until you completely understand it!
If you don’t know who to ask contact us or Mike. Ask us for referrals to other top consultants. Only others in the same trench know who is truly sharp and who just writes or promotes themselves well.
As Mike points out you must “Risk or Die” and “Fail Fast and Fail Cheap“ and “Trying to avoid all risk ends up being the biggest risk of all. There’s no better way to ensure your own failure than to sterilize yourself with fear.”
We include his quotes because they are all absolutely true. Safety is only an illusion and doing nothing will guarantee you achieve nothing. Pulling back now will make a bad situation worse!
His post prompts me to share some good calculated risks for your consideration:
- Start new long tail pay per click (ppc) campaigns aimed at immediate conversions using exact match only. Target a mix of inexpensive ($60-$120) products, mid-range ($120-$400) and high cost ($400/up). Do this because less expensive products have a shorter latency period (time between first ad and consistent sales) but expensive products are the most profitable to advertise. Do NOT advertise anything that has an average sale amount lower than your cost of advertising. Even if these campaigns “fail” you raise visibility for those products and in your niche. (Read our PPC warning post first though.)
- Launching or improving a blog – make it fully optimized for both SEO and interactivity. Keeping in mind that conversions increase when all your potential buyers’ questions are answered, use your blog to answer those questions before they’re asked. Use it to find out what your visitors think and want. Use it to make suggestions and to target specific keyword phrases and products.
- Start growing Social Networking sites coordinated with your main site and blog at Twitter and perhaps one or two other Social Networking sites. Claim your brand on every Social Networking site and direct visitors to those over to where you are the most active. It is better to be consistent somewhere than spread so thin you do a poor job everywhere.
Now is NOT the time to spend in desperation. Do not part with a penny buying traffic from any source that will not reveal in a crystal clear manner where the traffic comes from and how it is generated. Losing money to black-hat SEO or spammers is not the greatest risk; ruining your business reputation is.
{ 34 comments… read them below or add one }
Twitter: @MikeTek
Really appreciate the mention and link.
Your tips above are great as well.
Advertising via scalable systems like pay-per-click allows you to fail modestly and learn from it fast. That’s the lowest risk you’re gonna get.
Twitter: @GrowMap
Hi Mike,
I was about to log off when I saw your post and decided to reply and add my two cents. This post started out as a comment but it got rather long so here it is.
For speed you can’t beat a very tight exact match only ppc campaign. Social Networking can work well IF you have the time to figure it out and have patience too.
InternetStrategist’s last blog post..Intelligent Bloggers to Consider Reading
Twitter: @AussieSire
I’ve been in business for close on to 30 years, and perhaps I’m not a millionaire because I haven’t played by the ‘risk or die’ rule, but then I have done better than most of those working for the boss, and I have always managed to put food on the table for the family. Perhaps if I was single I would be more likely to attempt it, but for now my responsibilities to my family mean I have to play it safe.
Sire’s last blog post..A Twitter Service You’d Be Crazy To Miss Out On
Twitter: @GrowMap
Hi Sire,
I suspect that both Mike and I had ecommerce businesses in mind that are pulling back due to fear of the economy and thereby greatly increasing the negative impact on their businesses. For them they truly must be pro-active to generate new business to make up for lower spending from existing customers being affected by the economy.
For you and other bloggers it may not be as necessary; however, it can still make a big difference. If you would like additional information on how to do it just ask. I now consider AdWords high risk; however, there are ways to control that risk IF and ONLY IF you focus on strictly on safety over quantity.
You have already done the second and third and are expanding on them so you are actually already being pro-active in growing your business.
InternetStrategist’s last blog post..How to Create a Successful Blog Based Business Part 1
Twitter: @AussieSire
Yeah, I know, I reckon I was only playing devils advocate there for a minute. I’m not into e-commerce as such and so I reckon I’ll just sit back and watch how things progress.
Sire’s last blog post..Wassup Blogs You Beaut Huge Link Love Fest
Twitter: @GrowMap
You may want to consider getting into something similar to ecommerce. It is easy to add affiliate stores to WordPress sites now so you could add a related store to an existing blog or create a niche store in a new blog.
Derek has been working with using Datafeedr to quickly import hundreds or even thousands of products from any store that has an affiliate program they support. That is how the NoBogies store was built.
There is more on that in the post in the Comment Luv link I’ve used in this reply and we have Derek to give us a hand on implementation.
InternetStrategist’s last blog post..Do YOUR Blogging Goals Include Monetization: Benefits Our Readers Receive
Some good simply advise here. Sometimes we think or if we just pay for this orpay for someone to do that things will improve. But really, if we just take responsibility do our research and get on with it we would get much more success and quicker. Good pst thanks very much… inspirational!
Twitter: @GrowMap
Welcome Steve,
While you can hire someone you better be sure that someone truly knows both what they’re doing – and perhaps even more importantly – understands and respects precisely what YOUR goals and risk level are.
While I advocate WISE spending I ask my friends and clients not to spend money on ANYTHING without checking with me first. When they have disregarded that warning they have been burnt.
Those of us who have been in online marketing for a long time know the common scams, can research new offerings, and if we don’t know enough about them we know who probably does and won’t hesitate to ask until we confirm whether they are legitimate or thieves.
InternetStrategist’s last blog post..Why You Can NOT Rely Solely on Organic Search Listings for Traffic and Revenue
Twitter: @DennisEdell
“Do NOT advertise anything that has an average sale amount lower than your cost of advertising.”
There I thought you were going to talk about using Loss Leaders; a truly risky method not to be tried by the squeamish – many dead eBay businesses can vouch for that…
Dennis Edell’s last blog post..100 Strategies Book Review FollowUp – I Name Names!
Twitter: @GrowMap
Hi Dennis,
Loss leaders are for those who can either afford to take the loss OR have already measured and know precisely how many upsales and conversions their loss leader will generate, i.e., enough to put them into the black overall.
One of the most common mistakes I’ve seen business owners and even ppc specialists make is to spend money on sales that will never make money for them. It pays to put a pencil to the profit levels BEFORE you start spending. Here is an example:
It makes no sense to pay fifty cents per click knowing you need 50-100 clicks to make a sale that doesn’t have that much profit built in.
$0.50 x 50 = $25 and $0.50 x 100 = $50 so never advertise anything at $0.50 a click that doesn’t provide $25-$50 IN PROFIT after expenses.
Few seem to grasp this obvious “rule”. Depending on the mark-up, to generate $25 in profit it usually takes at least an average order of $60+ so advertising $20 items is going to be unprofitable unless you can increase conversions or use that item to generate upsales of additional products or multiple quantities.
Anyone considering running pay per click advertising should read the post I’ve featured in Comment Luv in this reply FIRST and completely understand it before they part with their money.
InternetStrategist’s last blog post..We Miss The Golden Days of the Internet – Pay Per Click Advertising Circa 2003
I guess I’m going to sound like a contrarian to this article……because I’ve actually CUT BACK on my paid marketing, due to the amount of WOM that I’ve accumulated in my market…….I’m having my best wedding season EVER, largely due to my ranking in SERP. Other wedding vendors in my market complain of lost market share, but my business keeps growing! They are clinging to the “old” methods like Bridal Fairs & phone book Yellow Pages, and don’t understand why their market is declining. A fellow DJ told me “We are losing weddings to IPODs” …..I took offense to that statement because we always had Walkmans and Cassette Decks before, and that never took $$$ off my plate.
I guess this comment is trying to say “You don’t have to spend any money on PPC” —keep building those inbound links, concentrate on a Social Network like Yelp or Facebook (choose your poison, but don’t dilute your brand), and make sure your client reviews can be seen all over the internet! Be sure to enter the local “City Voter” promo (its called the WXYZ “A-List” in most regional markets), as the City Voter comments are picked up by Google Maps!
And, read this blog! LOL
Twitter: @GrowMap
Hi Matt,
You may be surprised to know I totally agree with your comment. I feel so strongly that businesses must move away from ppc and toward word-of-mouth (WOM) recommendations, Local Search, Social Networking and optimized blogs that I left a very lucrative, totally ppc-based income to develop proven strategies to share here.
Next to the tabs for Home and About in our header we feature Local Listings and Special Offer – both about the importance of getting listed in Local Search Engines such as Yelp, Merchant Circle, Yahoo! Local, Google Maps and others – with a special focus on those that have Review functions.
You may have already read this post but we share it here so others can understand why both you and I recommend getting involved in Local Search Engines: The Importance of Online Reviews – How the Public Finds Trustworthy Businesses
Thanks for sharing the great tip about the WXYZ promo and also for sharing your success story. It will encourage others to get pro-active in growing their businesses which was my real intention in publishing this post. While ppc ads may be one strategy it is NOT the most important and using it is a personal decision.
InternetStrategist’s last blog post..Why You Can NOT Rely Solely on Organic Search Listings for Traffic and Revenue
Twitter: @GrowMap
Hello Matt,
I would absolutely agree with your comment because I have been consistently warning businesses for well over a year to move away from ppc and toward growing in their niche using Social Networking, quality content, and highly optimized blogs. WOM is always superior to paying for traffic.
As I mentioned in my reply to Sire above, I have seen businesses that have been relying on advertising pull back right when their incomes were declining due to economic factors and BEFORE they were utilizing other methods.
Social Networking takes time. Attracting and driving traffic with quality content takes time. WOM doesn’t usually happen overnight (unless you’re really good at generating Free Publicity from major media sources or hit the Buzz page at Yahoo or StumbleUpon).
These do not immediately replace existing organic or paid traffic but those who intend to survive need to really get serious about diversifying. They are at extreme risk if they do not start working on these strategies – and your comment here is a testimonial to the fact that they DO work.
If you look at the tabs we’ve chosen to feature here (after Home and About) they are Local Listings and Special Offer – both strong recommendations for getting active on sites like Yelp, Merchant Circle, Yahoo! Local, Google Maps and all the other Local Search engines and ESPECIALLY those that offer those all important REVIEWS.
I suspect you’ve already seen it but for those who haven’t I will link my post on The Importance of Online Reviews; How the Public Finds Trustworthy Businesses to this comment (where it says GrowMap – not the Comment Luv featured post link).
InternetStrategist’s last blog post..Intelligent Bloggers to Consider Reading
Twitter: @MikeTek
I’d just like to add that I don’t advocate PPC as a long-term strategy either – unless you have a proven formula to remain profitable through this medium (plenty of companies do).
For newcomers to a search vertical organic is definitely a long term goal, but upfront there’s often a lot of fog on the map. Testing with PPC can help you gain initial exposure while collecting valuable data.
Of course, WOM destroys all – there is no better marketing than the marketing your customers do for you of their own volition. That’s the mark of a truly well-conceived and efficiently run business.
Twitter: @GrowMap
Hi Mike,
Thanks for contributing more from your experience. I definitely did use ppc as an ongoing means of generating a profit and it can still be done for new keyword phrases that have not been effectively targeted by anyone else before. Google eventually absorbs the best converting exact match keyword phrases by targeting them with broad match competition.
While I would once have advocated continual expansion to more long-tail keywords and hope a retailer would not run out of them I now believe it far better to develop WOM, link bait worthy content, and Social Networking because I do not know of a single ppc engine that has sufficient traffic volume to generate a strong income that can be trusted.
It is clear now that the major ppc engines goals do not align with the goals of small businesses. They will continue to favor Corporate Brands, setting Corporate generic ads into competition with specific niche companies even when they do not sell in those niches. Use their systems as you can but do not rely on them or trust them.
InternetStrategist’s last blog post..We Miss The Golden Days of the Internet – Pay Per Click Advertising Circa 2003
Good post , Long tail keywords are always worth of taking risk . This time is good for taking risks because most of your competitors are afraid of taking it . so there is bright chance of getting successful
Twitter: @GrowMap
Hello gagan,
Yes, many businesses are making the situation worse by cutting their spending when they need to be expanding their efforts instead of pulling back. For those who don’t want to use ppc advertising they can target long tail keyword phrases with quality content and share those posts/pages on Social Networking sites.
When business is slow, we can all invest your time creating new content and driving traffic instead of worrying.
InternetStrategist’s last blog post..How to Create a Successful Blog Based Business Part 1
companies are shying of spending. budgets may not improve before sept…
Indian Retailer’s last blog post..Eveready is waking up
Twitter: @GrowMap
Hello Indian Retailer,
Yes, companies are cutting back but that is the worst thing they can do as it will make the downturn worse for them. While it is wise to cut back on what does NOT work that is not as easy to determine as analytics people claim it is.
When sales are slow that is the time to invest more time and money in growing your business. Local Search listings and Social Networking are both ways to do that without spending money if you can do it yourself. Local Search is a one-time investment that pays off indefinitely.
InternetStrategist’s last blog post..Why You Can NOT Rely Solely on Organic Search Listings for Traffic and Revenue
I like the article. Its a nice post. It’s educational and you can learn a lot from it
so bored’s last blog post..The Crowd
Twitter: @GrowMap
I’m never bored because there is so much more to do. You may want to check out some of the other posts here on growing traffic to your blog. Are those games on your site?
Internet Strategist’s last blog post..Do YOUR Blogging Goals Include Monetization: Benefits Our Readers Receive
Twitter: @SpotCoolStuff
Even though I already knew everything you wrote on some intuitive level, it was still really good to read it. It was encouraging. Thank you.
I also agree that featuring a mix of inexpensive, mid-range and high cost products is key. However, at the moment being I’ve found it better to place a bit more emphasis on the inexpensive end of that range. As the economy improves I can always go more upscale.
Spot’s last blog post..Three Cool & Affordable Accommodations In London
Twitter: @GrowMap
Welcome back Spot,
More expensive products have a longer latency period between first visit and purchase so it wouldn’t hurt to feature a few. Those larger profits can keep you in the black easier than advertising only inexpensive products.
Internet Strategist’s last blog post..We Miss The Golden Days of the Internet – Pay Per Click Advertising Circa 2003
The hardest problem I had while trying to make money online was staying focused on one idea. Once I was able to create a plan and follow through with that plan everything else started to fall into place.
If you think you have a new idea that’s a gold mine write it down and come back to it once you finish the current “plan”.
Daniel’s last blog post..Transferring Balances in Credit Cards
Twitter: @GrowMap
Hi Daniel,
Great advice; it is easy to spread yourself too thin. Each project takes not only creation time but also promotion time so focusing on one until it is firmly launched is a good idea.
Internet Strategist’s last blog post..How to Create a Successful Blog Based Business Part 1
For the past ten years I have been what many call a seriel entrepreneur and now is really the time to make something happen if you want to. This applies not only to your business life but also any personal things as well. My husband and I are using the weakened economy to expand our ranch so that we may be able to retire sooner in the future. We have calculated the risks and the rewards are too great to pass up.
Twitter: @GrowMap
Hi Tracy,
What type of ranch? The escalating cost of fuel and corn are causing serious challenges for farmers and ranchers. There is a huge demand for healthier grass-fed meat sold directly to the consumer. Many cattle ranchers could move into that market and really do well. I’ll be promoting healthy living at http://PSPLiving.com as soon as I can resolve Internet connection issues that are seriously affecting my ability to work.
Internet Strategist’s last blog post..How to Create a Successful Blog Based Business Part 1
Twitter: @GrowMap
Hi again Tracy,
After looking at your site I wanted to mention that you could really benefit from adding some quality content on how to use and select fire extinguishers and other fire safety products. There are many benefits to doing so including attracting incoming links (which also increase your search engine rankings) and saving phone time and costs. (When your visitors can read for themselves they don’t have to call to ask – although some still will.)
The easiest way to do that is with an SEO optimized blog like this one. There is more detail on that in the post linked to my replies to your comment in this post and throughout this blog.
Internet Strategist’s last blog post..How to Create a Successful Blog Based Business Part 1
As far as social networking goes – for me it has not been very useful with minimal ROI. In the UK Facebook is the biggie with about 40% of social media users having accounts. Twitter is still very weak with only around 1.5% of social media users engaged in the system, and many of them are techy web dweebs. Some good suggestions in the referenced post though.
Roxy’s last blog post..Oakley Sunglasses – Oakley Pit Boss Sunglasses – Titanium Matte Black / Black Iridium Polarized – £499.99
Twitter: @GrowMap
Hi Roxy,
There is not usually a direct correlation between Social Networking activities and sales right away. Social Media is primarily useful for creating relationships that may eventually lead to business. Most businesses would be better off getting their products featured on sites related to what they offer.
Due to the large investment in time required it makes more sense for ecommerce sites to collaborate with those who are already active and have followings in various places. Most business owners (unless they occupy a very small niche) simply will not have the time to consistently participate online.
Internet Strategist’s last blog post..Do YOUR Blogging Goals Include Monetization: Benefits Our Readers Receive
First you need to have funds to invest. It’s not that easy in the times of crisis. Sure you’ll be better off investing than keeping the money “for later” but still
jim’s last blog post..Pozna? 29.05.2009: Mam do wynaj?cia
Twitter: @GrowMap
Hi Jim,
Most of the strategies we suggest don’t involve spending money. Those will limited funds can focus on adding their businesses to Local Search Directories, getting positive reviews (See The Importance of Online Reviews – How the Public Finds Trustworthy Businesses), adding interactivity to their own blogs See Blogging Best Practices: Enabling Your Readers to Subscribe to Comments), commenting in other blogs (See Commenting Strategy Increased our traffic 54.87% ) and being more active in Social Networking
InternetStrategist’s last blog post..How to Create a Successful Blog Based Business Part 1
It is scary to think of investing more in a time when everything seems to be turning to dust.
Twitter: @GrowMap
Hello Mira,
Check out the comment just above yours for many excellent ideas for ways you can invest time instead of cash to bring in more business. Something else you can do is add quality content about anything related to the type of furniture you sell. That will bring in organic traffic, attract incoming links, and the business that provides the answers to a buyer’s questions is more likely to make the sale.
Check out our latest post featured in this reply for tips on how to create content that targets specific search phrases. When sales are slow, those who get busy adding new strategies instead of worrying will be the ones to benefit.
If you’re not already in Local Search Directories make getting listed there a priority. The sooner you are in them the faster you’ll start getting positive reviews. The better the reviews the more business you’ll get. Even two or three reviews makes a huge difference.
InternetStrategist’s last blog post..Select Keywords First to Make Your Content Easy to Find