Monthly Archives: March 2006

How things change!

I started working online (on a part-time basis) almost 8 years ago.  Amazing really as this means that I have spent nearly half of my working life involved in some form of Internet marketing.

I was recalling to a friend recently how I got started in business online back in 1998 and whilst talking to him, I was reminded of how much things have changed since those early days…

1.  Of course, computers and the Internet in general were considerably slower than they are today.  My first proper PC (not including Sinclair ZX81s and Spectrums!) had a 266MHz processor and my dialup connection struggled to reach a speed anywhere near 56k.  Not only that but there was no ‘unlimited Internet access’ – I paid something like 4.5p a minute to be connected to the Web and thought it was an absolute bargain when this eventually dropped to just 1p per minute.

2. didn’t exist and all sales were conducted on the main website.  The majority of sellers (read 95%+) were American and nearly everything you bought or sold ended up traveling across the Atlantic.

3.  Online payment systems were in their infancy and Paypal (which is today one of the largest and best known payment processors) didn’t exist.  Paypal wasn’t founded until late 1998 and was originally purely for US customers.  This meant that anyone trading on online auctions usually ended up making their payments by cheque (check) or even cash.  I can remember regularly sending dollars to sellers in the US for something I had purchased on eBay and I received every single one of the items bought – no one ripped me off.  Oh happy days!

4.  There were next to no training products available that covered Internet marketing and related topics.  Actually, that is probably not strictly true, there were a few but you had to really hunt to find them and in fairness back then, it didn’t occur to me that what I was doing was actually Internet marketing.  This being the case, it was highly unlikely that I was going to find any of the training products on the subject (and I didn’t for several years!).

5.  There was no such thing as a UK wholesale directory and my UK-Trader’s UK Wholesale Guide was the first UK eBook directory of its kind.  So many people have tried to jump on the bandwagon and copy this idea that eBay now even has a specific category for ‘Wholesale Lists’.

6.  It was relatively easy to get your website to the top of the search engine rankings.  All you needed to do was ensure you had a few metatags and some relevant text and you could almost guarantee yourself a first place ranking.  Ok, it might have been a little bit harder than that but it was certainly a lot easier than it is today.

7.  Receiving Spam emails wasn’t anywhere near as big a problem as it is today.  This was well before any legislation trying to outlaw junk mail and many ‘big’ Internet marketers actually sent Spam as one of their primary methods of marketing!

8.  Websites weren’t pretty!  As well as being slow to load, I have this memory that every single website that existed back in the late 1990s was ugly beyond belief.  I am sure that this is just my mind playing tricks but I am convinced that cyperspace is a more attractive place these days 🙂

9.  If you wanted to start an online business, you could get hold of just about any domain name you wanted.  Maybe this is a slight exaggeration but you certainly didn’t have to sit for 2 hours typing in different variations of the same name just to try and find something that was available.  Saying that though, getting an AOL username was pretty hard.  Everyone seemed to start off using AOL back then but it also seemed that half the planet were already using AOL (how did they do that?!) hence the fact that the name you wanted was never available.

10.  If you told people that you worked on the Internet, they immediately assumed you were some sort of porn king.  No change there then, I still get this today!

11.  You didn’t need virus software or a firewall – your main risk of catching a virus was from opening an email attachment from someone you didn’t know and who does that?  Actually, quite a lot of people – back then, we didn’t know any better….

12.  The dot com boom was in full flow – millions of dollars were being pumped into crazy Internet companies which would eventually flop and lose a fortune.  Companies were achieving unheard of ‘burn rates’ (the burn rate is the rate at which a business is spending/wasting its cash assets prior to actually making a profit) yet at the same time, individual entrepreneurs were starting to use the Internet to generate substantial incomes (without the need for huge financial backing).

I could go on but I am running out of space (remember when we had 2GB hard drives and thought we would NEVER fill them up?!) but think about this for a moment:

The last 8 years have flown by – how will things change online over the next 8 years and more importantly, how can you turn these changes to your advantage?

Google Adsense

I don’t recall ever having written about Google Adsense before and given the amount of publicity that Adsense has received over the past few months, I did kind of assume that everyone knew what it was all about.  It would appear though that I was wrong…

So let me explain…

Google Adsense basically allows any website owner to act as an affiliate for Google by displaying Google’s paid ‘Adwords’ adverts on their own website.
If you are not familiar with Adwords, just do a search on Google – the boxed results down the right-hand side are Adwords and every time you click on one of them, the owner of the site being advertised gets charged a set amount.  The exact amount of the charge depends on how popular the keyword is that you searched for and a few other factors – without going into too much detail, you just need to be aware that this charge can be anywhere from 5cents to several dollars.

If you sign up for an Adsense account (which is completely free – more details from the link at the very bottom of this page), you are able to place the same adverts as are shown on Google’s search results pages on your own website pages.  But the real beauty of the system is that Google will only show adverts that are relevant to the content of your page.  They do this by crawling your web page automatically before displaying any adverts.  This allows Google to get an idea of what the web page is about and they can then display the adverts that are most appropriate to your visitors which in turn means that there is more chance that your visitors will click on an ad…

So why would you want to do this?

Simple – because Google will pay you a percentage of every cent they earn when someone clicks on an advert on one of your pages.  Now I know what you are thinking, ‘If some people are only paying 5cents a click, then my percentage of 5cents isn’t going to be much is it?’  In truth, no it isn’t but as I have always said, the Internet is a numbers game and whilst a proportion of 5cents is always going to be small, what about if you got a proportion of 1000 5cents each day?  You also need to bear in mind that there are very few search terms out there that only cost 5cents – in my experience, a more accurate average would be about 20cents – 50cents.

I know many people that have been using Adsense for some time on their main websites and easily make a few hundred or even a few thousand dollars a month and that’s great.  Quite frankly, it is probably the easiest income you will ever make because other than adding a bit of code to your web pages, there is nothing else to do.  If you have a website with a reasonable level of traffic, I would definitely give it a go.  Some people have a concern that by using Adsense, they may lose potential customers as they could click away from their site and this is a genuine possibility so you should take care when considering where to place adverts and on which pages.  On the flipside, I know a couple of people that are now making more money from Adsense each month than they were selling their own product so they are more than happy with this arrangement!

If a few hundred dollars a month isn’t enough to excite you, maybe you would be more interested to know that there are people out there earning, quite literally, tens of thousands of dollars a month purely from Google Adsense!  Yes you did read that correctly and these are not wild claims, this level of income really is possible – my own Adsense record is just under $6,000 in a single month! 

To be earning at this level you need some serious traffic and the majority of individuals that are bringing in this kind of cash tend to fall into the category of using some sort of page generating software to churn out hundreds of web pages at a time.  This type of software works on the principal that if you put thousands of web pages online, some of them will get good search engine rankings thus driving free traffic to a site or page which has Google Adsense clearly displayed as soon as a visitor arrives. 

There is some dispute over whether this type of page generation is ethical or not given that the pages created by these types of software are often pretty junky and not that helpful to a visitor.  One argument is that they are cluttering up the Internet and the other argument is that a webmaster can put whatever pages they like on their own server – if a search engine decides to rank these pages highly, that’s up to them.  Equally, if a visitor then decides to click on an advert on that page and generate a bit of income, so be it.