Did you know that the incredibly famous Nike “Swoosh” logo was created by a graphic design student desperate to pay for a dress for an upcoming party, for a stunning total of $35 (at $2/hour)?

I watched a Nike documentary recently, where they interviewed  Philip Knight (one of Nike’s Founders), “His Airness” Michael Jordan, and the legendary designer of all (or most?) Air-Jordan shoes.

Knight talks about how when he first met the folks at Wieden+Kennedy (the media company that helped launch Nike as an international brand, with mainly remarkable marketing), he told them that he didn’t believe in advertising!

There is a clip at the end where LeBron James, one of the highest paid basketball players in the world today, says he grew up watching Michael Jordan, and how he and every single kid he knew felt that if they wore the same “Air Jordan” Shoes that they saw Jordan wearing in the commercials, they too could “soar in the air” and make all sorts of magical moves on the court – Just Like Mike.

Did the kids know deep, deep, deep inside that just wearing a specific brand of shoes won’t make you a better player? Of course, they all did.

But did they still convince themselves (and their parents) against reason and common-sense, that the shoes were really what counted? Of course, they all did!

How much did the association with Michael Jordan help Nike become the sports-wear-juggernaut that it is? Probably a LOT.

That just proves one thing: When you have a really strong brand (remarkable shoes, remarkable computers, remarkable prices, remarkable advice), people are much more likely to  buy your products – AND your recommendations – without thinking too much.

My hero Seth Godin recently recommended a book called “Predictably Irrational: The Hidden Forces That Shape Our Decisions“. All he wrote was, (paraphrasing) “It’s remarkable, just go buy it”.

Had never heard of the author. Didn’t read any reviews. Didn’t care about the price.

I just went and bought it  – just because Seth Godin thought it was good (yes, he has worked hard to build that level of trust, and I’m sure he knows better than to dilute it by recommending purely in return for money (say, commercial endorsements?).

If you read only one book this year, then make sure it is this one.

Performics > DoubleClick > Google Affiliate Network

Google finally completed it’s DoubleClick Performics merger and started operations as the “Google Affiliate Network” on June 30th.

They’re now accepting applications from Advertisers, and knowing Google’s famous processing lag time, it wouldn’t be a bad idea to get an application in right away.

I just did, and I guess I’ll finally be able to promote my products using the affiliate network rather than PPC.

Here’s the official email from Google announcing the launch:

We are pleased to introduce Google Affiliate Network . Effective Monday, June 30, 2008, DoubleClick Performics Affiliate will operate as Google Affiliate Network. The integration with Google’s brand is a reflection of efforts to quickly assimilate our business and teams, as well as reinforce Google’s commitment to the Affiliate channel. Together with our new colleagues at Google we are creating new opportunities for monetization, expansion and innovation in Affiliate Marketing.

Within the next couple of weeks you will see some exciting changes to the user interface reflecting the new brand. The platform will continue to be hosted at www.ConnectCommerce.com, but will eventually migrate to a google.com product url.

As noted in earlier communications, DoubleClick Performics’ Search operations are being spun off and sold to a third party. While many advertisers have relationships with both DoubleClick Performics’ Affiliate and Search, there have always been separate account teams and product-specific specialists servicing clients’ search and affiliate programs. These teams remain intact. While the formal separation will occur when the Search business is sold, the businesses are functionally separate today.

We are proud of what we achieved as Performics and this name change signals a new milestone. Google provides world-class resources and enables us to continue to attract the best talent to support our advertisers and publishers. Now as part of Google we have an exciting and unprecedented opportunity to advance our industry. We remain committed to ensuring you receive the quality service you have come to expect from us.

We appreciate your business and look forward to doing great things together.

Sincerely,

Chris Henger

Group Product Manager
Google Affiliate Network

My question was very simple: I wanted to know how I could promote products using CPA (Cost Per Action) on the Google Network and allow publishers who have access to “AdSense Referrals” to promote my products by placing a piece of code on their web sites, and when someone clicked over to my web site and purchased one of my products, the publisher would get a piece of the sale.

Classic “Affiliate Program” stuff – where this time around, I wanted to be the merchant, and not the affiliate.

I contacted a Google AdWords Specialist on chat – who turned out to be not as much as a “specialist” as you would think they would be.

Read the chat transcript below to see how long it takes for the rep to even understand my question, and give out a meaningful answer. It is painfully obviously that I know more about Google Products than her!

But I am glad that she eventually gave in and deferred the question to a “technical specialist” (read: someone who knows their $hi#).

Completely unedited except for minor reformatting for readability, and removing of private content.

Chat Information: Thank you for contacting Google AdWords. Please hold a moment while we route your chat to a specialist who will help you with your question: “”.
Chat Information: AM has received your message and will be right with you.

AM: Hello Ravi. Thanks for contacting Google AdWords. I’m happy to help you.
AM: Could you clarify what you mean by referrals?
AM: Ravi, are you there?

Ravi Jayagopal: yes
Ravi Jayagopal: I meant, how would I advertise through Adsense Referrals?
Ravi Jayagopal: I’m currently using Referrals as a publisher
Ravi Jayagopal: I want to advertise my product through Referrals, so that publishers can promote my product, and then I would pay them a commission based on sale
Ravi Jayagopal: you there?

AM: Well, I am actually an AdWords specialist so I am really not familiar with AdSense Referrals.
AM: However, you can find out more at https://www.google.com/adsense/static/en_US/Referrals.html?gsessionid=N8x_KdsMNys.
AM: Referrals Help Center
AM: In the Help Center, there is a Quick Start guide.

Ravi Jayagopal: I don’t want Adsense referrals, actually
Ravi Jayagopal: I want to “advertise” – so wouldn’t that fall under “AdWords”?
Ravi Jayagopal: Publisher -> Adsense
Ravi Jayagopal: Advertiser – AdWords
Ravi Jayagopal: No?

AM: Yes Ravi, but you asked about Referrals.
AM: Referrals is not a part of AdWords.
AM: It looks like you already have an AdWords account.
AM: What do you have questions about in particular?

Ravi Jayagopal: Ok, here’s my question: Right now, as a “Publisher”, I pick out referral ads and display them on my site, and I make money when my visitor clicks on those referral ads and goes on to buy something. With me so far?

AM: Yes Ravi.

Ravi Jayagopal: Ok, now I want to put my “Advertiser” hat on and promote my product so that “other” publishers can promote “My” product through the referrals network
Ravi Jayagopal: how would I become an “Advertiser” and promote my product?

AM: Through the Content Network.

Ravi Jayagopal: Ah, that’s what I wanted to know
Ravi Jayagopal: So is there a way to say “Referrals” when I put my ad out on Adwords?

AM: You do already have an AdWords account with the email address <>.
AM: All you will need to do to appear on other sites is to opt into the content network when you create your campaigns.
AM: We don’t use that term.

Ravi Jayagopal: But when I opt-in to the “Content Network”, it automatically becomes just a PPC campaign right?

AM: We call your advertisements ads and we call our publisher sites ‘the content network.’

Ravi Jayagopal: I don’t want it to be PPC, but a CPA item

AM: You can also create a CPM campaign.
AM: Cost Per Impression if you’d like.

Ravi Jayagopal: not CPM. I’m talking about CPA – cost per action
Ravi Jayagopal: which is what Referrals is – CPA.

AM: That is not an option right now Ravi.

Ravi Jayagopal: then how are all these advertisers on Adsense Referrals?

AM: Again Ravi, I’m not familiar with AdSense referrals.

Ravi Jayagopal: Is there someone higher up who can help me with this question? Because it is definitely not an AdSense question – because AdSense is for Publishers

AM: If you want to contact the AdSense team to ask them about that, you can email them directly at adsense-support@google.com.

Ravi Jayagopal: and I am talking as an Advertiser

AM: Ravi, they will only be able to tell you what I am telling you, that you can create advertising campaigns that you’ll pay on an impression or click base.
AM: Those are the only options right now for our advertisers.

Ravi Jayagopal: So how are these advertisers advertising on a CPA basis? That’s what I want to know
Ravi Jayagopal: If you don’t know the answer, I would appreciate if you could put me through to someone who does
Ravi Jayagopal: But don’t tell me I’m asking the wrong question

AM: Please hold on just a moment Ravi.

Ravi Jayagopal: Ok, thanks

AM: CPA is not an option at this time in your account Ravi. I just checked with our technical specialist.

Ravi Jayagopal: Why? And when would it be?

AM: It’s a limited beta right now. If you give me the best email address to reach you at, I can email you if it does become available.

Ravi Jayagopal: ok…thanks…it’s <>

AM: You’re most welcome.

Bottom-line:
You cannot yet sign up as an “Advertiser” and promote your products through Google “Referrals”. It is in limited beta, and unless you were invited to be part of the beta, you would have to wait until they open it up to others.

As much as I love Google and probably qualify as a “Google FanBoi”, I have to say, Google sucks at most things not handled by their machines (read: Human Beings).

My “Video Unit” link wasn’t available yesterday when the announcement was first made.

Was able to see it today.

“Linked” my Adsense account with my YouTube account.

Got the confirmation from Google in a few minutes (they do warn that it could take up to 12 hours).

Created my “player”, got the code.

The ads load asynchronously, and they seem quite on target from the other sites I tested so far.

Way to go Google!

In this era of the open web, it is hard to monetize information that you can easily get elsewhere.

Want to read about what’s going on with the presence of Iranian dictator Ahmedinajad in NY City? Just Google-News it up (yes, that’s different from Googling it up), and you’ll get all the latest relevant news stories you can handle, in reverse chronological order.

So why would people pay for accessing the NY Times?

Not too many would, and not for long, figured the NY Times – and finally opened up the gates.

It’s official: the “Adsense Model” is in.

Open up your content, make money from ads. This same model didn’t work for most sites just a few years ago, in what I call the “Pre-Adsense Era” in my book. But now, it can work for all sites – whether you are NYTimes.com with millions of impressions, or a LinkOverLoad.com with just tens of thousands of impressions.

Usually I never follow NYTimes links that show up in many of my searches, because I know that 4 times out of 5, I will hit a password-protected story. But today, knowing that they have removed the wall, I read a very interesting article about the new model of outsourcing, a glimpse of which I had gotten earlier looking over the shoulder of someone reading the NY Times paper on the subway.

If you want to charge for your content, make sure your content is not easily available, not easily validated, or that there is too much information that cannot be easily made sense of.

“Our invalid clicks rate – the activity rate – has remained in the range of less than 10% of all clicks every quarter since we launched AdWords in 2002. At Google’s current revenue rate, every percentage point of invalid clicks we throw out represents over $100 million/year in potential revenue foregone.”, says Google’s Inside Adwords Blog.

Yep, that’s $1 billion! Is it really a loss? Because that’s billing that would’ve never occurred anyway, if those were truly fraudulent clicks.

Don’t get me wrong, I love Google. You could even call me a Google fanboy. But when you put it like that, it sounds like Google’s taking a huge hit because of fraud. Doesn’t matter how you say it, sure makes them look like a hero.

We all knew this day would come, but I had been more curious about the type of video ads that would show up: would they be pre-roll (first show the ads, then the actual video)? Would they be post-roll (after the video) or some kind of pop-up (probably not, knowing their Adsense policy about pop-ups)?

Well, it appears that Google is going with overlay ads on YouTube. I am yet to see an ad on YouTube, but I will update this post when I find one.

Maybe quite a lot, and mostly not a lot.

“Huh?”, you say?

If you look at this “top bloggers” list, you may end up buying into the fantasy that blogging will make you big bucks.

Not every blog will make that kind of money. Actually, it would even be fair say, that less than a fraction (less than 1%) of all blogs will make big money. Maybe a little more than a fraction will make decent money. But 95% of all blogs will not make any money. Why? I think there are quite a few reasons.

In my new book “No Business Like E-Business” that is being released shortly, I quote figures from Guy Kawasaki, about his self-disclosed ad revenues on his extremely popular blog. Here is a snippet from the book:

Excerpt from “No Business Like E-Business”

Imagine blogging for a whole year, ending up with a very popular blog that has 23,457 subscribers, ranked #45 out of all blogs in the world, and earning (brace yourself) a whopping $3,350 for the entire year!

Now stop imagining – this stuff is real.

I’m talking about Guy Kawasaki’s blog (blog.guykawasaki.com). These statistics only prove my theory further, that:

1. It is very hard to get tech-savvy folks to click on ads the way the average surfers (moms-and-pops) do.
2. It is not easy making a living just by blogging.

I myself own a site targeted at moms-and-pops, and I made many, many times more than what Guy’s #45-ranked blog earned. And mine is a very small niche, and a lot, lot, lot less less popular than Guy’s blog.

Here are some key stats from his blog:
• 2,436,117 page views (about 6,200/day)
• 23,457 RSS feed subscribers
• Total advertising revenue: $3,350 for 1 entire year (= $1.39 cpm)

You’ve got to take these stats with a pinch of salt, because these stats could be skewed due to a number of things – especially due to improper optimization for Adsense (or ads in general). Like mentioned earlier, Adsense optimization requires a lot of continued experimentation and tracking – in other words, a lot of focused effort – in order to make it work, which I’m guessing Guy probably didn’t due for various reasons.

But then there’s the other school of thought that overrides common sense. If you read the actual article, you will see that most of them did not start the blog with the sole intention of making money.

The main take-away here is that blogging may not make you directly cash-rich, but there are a lot of indirect, intangible benefits of blogging that simply cannot be overlooked:

• Build your brand: Develop a group of regular readers who are more likely to buy stuff that you actually sell down the line. Brand yourself as an expert in your niche. You will sell more books, get more paid consulting gigs, and all of that will eventually snowball into…. selling more books and getting more paid consulting gigs.
• Looks great on your resume: Unless you are putting up personal pictures or talking about stuff that you did when you were drunk, it adds a lot of value to your profile, because not everyone is capable of writing, and even among those few, not everyone is capable of writing about a focused subject in a professional way
• Ad-revenue: When you eventually start getting a lot of traffic, there will be plenty of ad-revenue opportunities (mostly CPM types); don’t count on PPC revenue, because tech-savvy folks just don’t click on ads.
• Develop original content: If you sat down to write a book, you may get overwhelmed by the amount of writing that needs to be done, and the sheer amount of effort that needs to put in. Instead, just start blogging chapter by chapter, and you could eventually compile those into a book (or other product).
• Blog posts can be transformed into articles: Writing an article for the sake of writing one can be extremely boring and painful. Instead, write short and crisp posts, and over time, you can pick each one up, expand it a little, and convert it into articles that can get you some incoming links.
• More traffic: Writing great posts that are instantly digestible and usable, and submitting to sites like Digg and StumbleUpon can not only get you tons of traffic, but also potential new subscribers and maybe even sell more of whatever it is that you are selling.

- Ravi Jayagopal
Author, “No Business Like E-Business“

Google came to prominence with a “Hate Images, Love Text” campaign. Slowly but steadily, they ventured into “banner” advertising, then “video” advertising, then affiliate programs, and now they have purchased one of the biggest “traditional” online advertisement networks, DoubleClick.

Their huge dependence on their “advertising” model is both exciting and scary at the same time.

Imagine blogging for a whole year, ending up with a very popular blog that has 23,457 subscribers, ranked #45 out of all blogs in the world, and earning (brace yourself) a whopping $3,350 for the entire year!

Now stop imagining – this stuff is real.
I noted in an earlier post, that in spite of being a Google fanboi, I only see pure “click-thru” earnings decline over time for everyone. This is based on my own theory, as well as general consensus, that the more tech-savvy your audience is, the less likely they are of clicking on Adsense (or other PPC) ads, be it on Google’s search pages or on third-party web sites.

A recent posting on Guy Kawasaki’s blog only goes to prove my theory further, that:

1. It is very hard to get tech-savvy folks to click on ads the way the average surfers (moms-and-pops) do.
2. It is not easy making a living by blogging, leave alone by monetizing your blog with Adsense.

I own a site targeted at moms-and-pops, and I made many, many times more than what Guy’s #45-ranked blog earned. And mine is a very small niche, and many, many, many times less popular than Guy’s blog.
Here are some key stats from his blog:

• 2,436,117 page views (about 6,200/day)
• 23,457 RSS feed subscribers
• Total advertising revenue for one whole year: approximately $3,350 = $1.39 cpm.

This is not very far from the pathetic $1.80 that I’m seeing with my own Adsense earnings these days (a drop from the high $2’s, and even low $3’s). However, this drop is not because of number of click-thru’s or the click-thru rate (both of which have actually gone up due to my persistent optimization of the content and the ad placements), but actually due to a big fall in the CPM (Cost Per-thousand iMpressions).

This could be because advertisers are generally bidding lower in this new year, or the advertisers in my specific niche are bidding lower, or that Google somehow (read smart-pricing) has determined (or just decided) that my click-thru’s are worth less than before, or it could simply mean that Google has given themselves a pay-raise this new year by taking a bigger chunk of the earnings-per-click.

I have already started researching other ad options. I’m not sure how well other PPC networks will compare to Adsense, and in fact I don’t believe the other PPC networks will earn me more than Adsense does. So it is time for a change. Time to change not just my PPC options, but time to change the ad strategy – like maybe CPA (cost-per-action, a.k.a pay-per-lead or pay-per-sale).

It’s the new year after all. Out with the old, in with the new.

- Ravi Jayagopal / LinkOverLoad.com