Thursday, September 30, 2010

Why America is No Longer Tops in Entrepreneurship

If you've been feeling that our country isn't as hot a place for entrepreneurs as it once was, it's not your imagination. A new study from the Small Business Administration's Office of Advocacy shows the U.S. has sunk to third place when it comes to fostering entrepreneurial creativity. Researchers for the SBA took a look at the Global Enterpreneurship and Development Index, which looks at more than a dozen primary attributes for supporting entrepreneurial effort. The upshot: The U.S. now ranks third behind Denmark and -- brace yourself! -- Canada.

Where are we going wrong? The study found America strong in competitiveness, startup skills, and new technology, but we fall short in cultural support for entrepreneurs, our tech sector is weakening compared with other countries' tech effort, and as a result we have fewer high-growth businesses. Reasons we are weak in these areas include fallout from the dot-com bubble of the early '00s, the recession, and simply the comparatively better progress made by other countries.


"The global perception of the country as a land of opportunity and as the Mecca for individuals wanting to do something new and different seems to be somewhat challenged by the facts," researchers Zoltan Acs and Laszlo Szerb concluded. 


We scored lower than Canada and Nordic countries in terms of entrepreneurial attitudes and activities, but higher in aspirations. In other words, more people are sitting around fastasizing about being an entrepreneur in America, but fewer are taking the plunge.


"This seems to suggest that even though the presence of powerful role models and past successes makes Americans have a keen desire to be entrepreneurial, the actual process is finding fewer takers than one would expect," they write. "Cultural support for entrepreneurship and the American youth's perception of entrepreneurship as a viable career choice seem to be limited."


I'm not sure they're right on that. As the mom of a high-school teen who's been active in Future Business Leaders, and a reporter who's written about wonderful youth-entrepreneurship programs such as Empowerment Group's Youth Entrepreneurship Program, I think the problem isn't at that level. 


It's when you get out there and actually try to start a business -- maybe in your dorm room, or maybe after you graduate -- that there's often a lack of support. There's only so many incubators out there. Not every business is near an SBA Small Business Development Center or SCORE office. For many, that critical infrastructure is missing. 


We could use more entrepreneurship programs in colleges, more incubators, and more funding for startups at every level. The shrinking venture-capital sector certainly isn't helping us fuel the growth of "gazelles," those fast-growing companies so essential to economic recovery.


Many more don't take advantage of the resources that are out there. Sort of the entrepreneur equivalent of not asking for directions...and it is apparently having real consequences for our nation's economic future.


At the risk of stating the obvious, in today's economy, there's also a lack of available capital, too. 


What do you think would boost America's global entrepreneurial standing -- and more importantly, get more entrepreneurs up and going? Leave a comment and let us know.


View the original article here

Tuesday, September 28, 2010

Optimizing SEO Resources - Whiteboard Friday

Hello everybody! My name is Aaron Wheeler and I do customer service here at SEOmoz; if you call us or email us, there's a 50% chance you'll end up talking to me. Oh well! Your loss is my gain. =) Anyways, one of my new tasks in the office will be video production so you may end up seeing my gob around the blog every once in a while. I'll be the main one posting these Whiteboard Fridays in the future as well as some of the other glorious cinema we create to vitalize your ears and eyes. It'll be fun! If you have any feedback or ideas, I'd love to hear them; you can reach me by email or twitter at my contact page: Aaron Wheeler. Nice to meet you!

This week, our very own Danny Dover discusses some important and scalable ways to optimize your SEO resources. We all know that pickins' can be slim when it comes to many companies' budgets for SEO, so why not make the best of what you've got? Danny has some ways that you can make the most bang for your (and your boss's) buck.

Hello, everybody.  My name is Danny Dover.  I do SEO here at SEOmoz.  Today we have something a little bit special.  We've bought all new equipment and new microphones.  We heard your comments in the blog posts that our sound quality was a little bit "meh."  So, we're trying to make it a lot less "meh."  So, please give us your continued feedback in the comments below.

For today's Whiteboard Friday, we're going to be talking about optimizing your SEO resources.  So, according to my research, this is the most meta SEO Whiteboard Friday we've ever done.  We have optimizing and then, of course, the O in SEO stands for optimization.  So, if there is some kind of time warp or something that goes on, just expect it.  It is kind of the things, part of the downside of this job is that sometimes you disrupt the universe.  Oh, well.

So, I've broken this down into three categories that I recommend.

1. Define Goals

The first one is define goals.  Just like self-help books, goals are very important, right?  That analogy didn't work per se.  Maybe I need to read more self-help books.  That would be a good idea.  Define goals, right.  I have broken that down into three subcategories.

Find your highest ROI customer.  This is a little bit counterintuitive but it makes a lot of sense.  I recommend doing this first.  If you have an established website and you're trying to optimize your SEO resources, you're already going to have some data on who your customers are.  Let's say you are a newspaper website.  I'm sorry, first of all.  Hard times for you, but good luck.  So, if you're a newspaper website, you've got to figure out if it is your politics readers who are going to make you more money or if it is going to be your sports reader that are going to make money.  Then based on this information, you get this from your analytics and some Excel stuff, figure out what you can do to target those customers specifically.  So, really maximize the money you are already getting.  So you have these resources in place.  Make sure that you are getting the most out of them.  That is kind of the key to optimization.

Identify your budget.  They say the creativity is limited by, or creativity is dictated by limitation.  The Google homepage is always the example I hear about this.  Although, if Google is watching, you're kind of getting overboard lately.  The one where the balls went flying everywhere annoyed the heck out of me.  Please don't do that again.  Identify what your budget is.  This is going to dictate everything that you are able to do.  Are you going to be able to hire on a whole team of content writers?  Are you going to be able to get SEO consultants onboard with you?  How are you going to do all of your web development stuff?  It's all dictated by budget.  So, know what that is going forward.  Get it on paper.  Make sure you know what this is.  Make as elaborate a budget as you can upfront so that you know what you are going to be able to do going forward.

Develop a Content Strategy. this is the one where I see mistakes made the most times, myself included.  I mess this up all the time.  Develop your content strategy.  The key to SEO -- and you have heard lots of talking heads like myself talk about this in SEO spaces  -- is that content is the key for SEO.  That's because when people go to search engines, be it Google, Bing, Yahoo, or whatever it may be, they're going there to find content, right?  That's the purpose.  They want some kind of question answered.  The key to SEO is content, building that thing that Google is going to want to index and provide in their search results.  You need to figure out how it is going to happen.  Who is going to be writing these contents?  If it is a blog post, is it going to be Jamie from marketing, is he going to be the one who is going to write it every week?  Is it going to be every week?  Is it going to be every day?  Do you have a signed contract from Jamie saying he's going to do this?  What happens if he is out on vacation or something?  How are you going to get the content produced every week?  Who's going to write it?  Who's going to edit it?  How is it going to get published?  You need to figure out these details early, as quickly as you can.  Get them ironed out on paper.

2. Calculate Impact vs. Effort

Calculate impact versus effort.  This one is kind of core to optimization.  Figure out what are your lowest hanging fruits, this is the first one.  I found the best way to do this is using, this is super self-promotional here, using OpenSiteExporer.org, which is a SEOmoz product.  It's free.  You don't even have to sign up to use the basic version.  But with OSE, with Open Site Explorer, you go in there, put in your URL or your competitor's URL if you are really clever.  Click on the tab that says top pages, and it will show you all of the top pages by links, so which page has the most links to it.  It will show you the status codes.  So, if it is like a 404 error, it means you have links going to that page, but you are not getting any SEO value from it.  The same thing with a 302 redirect.  If it is not a 301 redirect, it is not going to help you from an SEO perspective if it is a 302.  These are links that you already have.  You've already done the effort to make these work, but you aren't getting any benefit from them.  They're the low hanging fruit.  Again, that is OpenSiteExploreer.org.

Meet with stakeholders.  I would say it is about three months ago now, we did this at SEOmoz.  We brought in all the heads of the departments here and then a couple other important influencers for the company.  We put them all in one room.  We were like, "Okay, what are everyone's top priorities?"  What do they want to see happen in the year to come at SEOmoz?  We wrote our suggestions on sticky notes, put them up on the board.  It was not surprising that they varied by department.  I am in the marketing department here and mine happened to be marketing goals, whereas the developers wanted some more back end things to happen.  The bus dev people wanted more, like, "We should make more money. That'd be a great idea, right?" That's why they're the bus dev people.  Then we had operations who were doing other things like that as well.  We put all of these on a whiteboard, discussed them all, and then voted on them as a team.  Based on this, based on how much effort it is going to take from the marketing department, how much benefit are we going to get globally for the entire company as a whole?  We found that this exercise provided a lot of value for us.  It is actually the roadmap that we are using today.

3. Document Repeatable Processes

Document repeatable processes.  This is kind of self-explanatory.  In SEO, there are lots of tedious projects you have to do.  Let's say it is link building. You're going to go do the keyword research, figure out what anchor text you want to target, then you are going to go through and find out what the relative link sources are for that.  You're going to contact the right people and ask them if you have a template probably.  Or you're going to do some kind of, build some content so it can attract the links naturally.  That's the way I like to do it, just as a side note.

With these, whatever your process is, whatever you find works for you and your organization, document the processes.  Write down every single step.  I do this for two reasons.  The first one is so that I know I am not missing a step when I go through this.  A lot of times when I have done a process for the umpteenth million time, I skip a step just because I am human, I get bored of it, and I stop paying attention.  But if I have a checklist in front of me, I can go through and make sure I don't do it.  The other reason is for scalability.  If you can take this process and hand it off to more people to do the same process as you while you are doing it, then it is going to scale, right?  You're going to get more throughputs on this process.  I have found this to be extremely successful here and especially when I was doing SEO work with clients in the past.  If I push this off to other people who are working for the company who are doing similar things, we can maximize the amount of impact we get with minimal effort from the people involved.  So, it's fantastic.

That's all the time I've got today.  I look forward to hearing all your comments below.  Thank you.  I'll see you next week.  Bye.


If you have any tips or advice that you've learned along the way, we'd love to hear it in the comments below. Post your comment and be heard!


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Sunday, September 26, 2010

How To Craft A Compelling Offer In 7 Easy Steps

At the moment I’m madly running around in an attempt to put together a page to promote the workshop Alborz Fallah and I are running in October in the USA. If you are interested in attending I’ll have full details for you very soon…as soon as I get the page up!

There are two things I need to complete in order to finalize the page.

The location for the workshop. It’s going to be in New York City in October, and I think I’ve just found a venue to host it, so this is almost sorted.The sales page video that tells you about the event.

Alborz and I began filming the video footage last week and managed to record some very good blooper reel content, but nothing we could actually use (we did have lots of laughs though!).

I realized one of the main reasons we had such an unproductive day was that I didn’t have a good enough plan for what the video should contain. I went back to some of my study materials and cheat sheets on how to construct a good offer to refresh my memory.

I came across a video from Eben Pagan’s Guru Blueprint course which gave me the reminder I needed. The video wasn’t too long, about 20 minutes, but had a really simple 7 step formula for coming up with an offer. I’ll share it with you in a moment, but first let me explain what exactly an offer is.

An offer is the final place where you tell your potential customers what you are offering them in exchange for their money. It might be a sales page, or a sales video or a pitch on stage at an event or on a live webinar. Whatever the format, the content remains much the same and there are some key points you should cover to help increase your likelihood of making a sale.

I previously became very confused about what exactly an offer is. I thought it was just the buy button on a sales page or simply saying you get this if you give me X amount of dollars. I later learned that an offer is a lot more than that. It includes the obvious component – a price and a mechanism to make the transaction – but it also includes other important things like price justification, risk reversal, background story and other marketing elements.

The offer is absolutely critical because it’s the final piece of marketing your prospect experiences before making a purchase. You might lead them towards an offer with all kinds of different marketing tools, but the offer is the final conclusion.

In the case of the video I am making now, Alborz and I are relying on our reputations, personal case studies, record of results and established relationship with you as key components of our offer. That means the video has to explain a lot, which is why having a framework or even just a checklist, is helpful.

I’m not going to repeat word for word what Eben teaches. You can take one of his courses if you want his break down. That being said, these are not strictly Eben’s ideas either, he’s taken what he learned from other people, in particular copywriters like John Carlton, and come up with his interpretation.

In the spirit of interpretation, here is my take on the 7 steps, which you can use to craft an offer for your next product.

1. The headline.

This is the element that encapsulates what your product does in a brief sentence or two. It should focus on the core emotion driving your potential customer to make the purchase, and must be clear about specific outcomes. Like writing headlines for blog posts, this is the most important element because it’s the initial attention grabber. For a video offer, I consider what you say in the first 30 seconds equivalent to the headline, or you can include headline text above the video to entice people to click the play button.

2. Set up the scenario and explain the challenge the customer is up against.

In this section you frame what the potential customer is facing and what experiences most people have when trying to achieve whatever your product helps them achieve. This is where you demonstrate you know the problem or desire the potential customer has better than they do. This is very powerful because it shows your intimate knowledge of the situation and that infers you might have something that actually works, because you know so much about what doesn’t.

3. Tell your story.

I’ve relied heavily on this element in many of my offers when it comes to teaching how to make money online with blogs and membership sites. If you’re teaching how to do something or how you went through an experience to come up with your product, going through the before and after story is very powerful. It helps to hook the prospect in because stories are the most compelling content you can create. As you tell the story you should point out your ah-ha moments and how you came up with certain techniques or solutions that no one else uses.

If you don’t have your own story, or even if you do, telling the story of other people works well too. Adding some case studies of previous customers or people who have benefited from your work is a very good idea and another technique I’ve used many times before. Testimonials are good, but stories from other people who were just like everyone else with a problem that you helped them solve with your product, are much better.

4. Dish out a list of the benefits of your product using specific and tangible results.

Eben suggest you come up with twenty dot points you list out of all the amazing things your product or service does, focusing on tangible outcomes and specific problems (avoid abstract concepts like “you will feel better” – instead use phrases like “You will lose ten pounds and be able to play tennis again”). This is a good chance to touch upon sticking points that your prospects might have. If your prospect sees just one point that strikes a nerve that they simply must know about, this could be the trigger that convinces them to buy.

5. Next you state the price, but you don’t just lay it out there, you justify it by demonstrating how much incredible value you are delivering.

Eben recommends you focus on showing how you are charging just 10% of the value you are delivering, for example pointing out that you charge X dollars for private coaching, yet this product costs just a fraction of that. This is a good time to include bonuses, which as Frank Kern calls it – you “stack the cool” – including so many relevant and exceptionally valuable additions to your core product that people can’t help but say yes.

6. The Risk Reversal.

This is where you tell prospects that there is no risk buying because they are protected by a guarantee. The risk is then placed on you to deliver, since they can ask for their money back if they don’t like it. Of course you plan to over-deliver, so this is a win-win, your prospects are protected so compelled to buy, and you are committed to delivering a great product.

7. The Call To Action.

This is straight forward, yet needs to be very specific. Tell your prospects to buy by saying do this (e.g. click the buy button), then this will happen (e.g. you will be directed to our secure order form where you will make payment via credit card or paypal) and then this (e.g. you will receive a confirmation email within a few minutes of processing your order).

Don’t just say “please buy now”, tell them how to do it and say do it now. This needs to be explained as if you are teaching someone how to use the computer for the first time.

Obviously these points can each be dissected to much more depth, but this list is a good starting point. I recommend if you want more details on what to include in a sales page but you don’t have money to invest in a full course on copywriting, try Alexis Dawes Desperate Buyers Only ebook, which you can find my review of here and costs under $100.

I need to get to work and start compiling my answers to these seven points for the New York workshop with Alborz I will be offering you very soon. It looks like we will have about 10 spots available, so stay tuned if you want to come hang out with us in October.

Yaro Starak
Crafting Offers


View the original article here

Thursday, September 23, 2010

Online Marketplaces: Market Outlook, Revenue Models and Recent Trends

The forecast is bullish. Experts predict that by 2008, 27% of all e-commerce sales will be generated by multi-merchant product aggregators. Shoppers are expected to use Comparison Shopping Engines to the tune of $54.3 billion in revenues by 2008.

There are primarily two types of prevalent revenue models among online marketplaces – pay per click (PPC) and percentage of sale (POS) or cost per order (CPO) as a means of paying the marketplace. There is also a third type: Froogle.com. Offered by Google, Froogle.com is free. The rest charge merchants based on visits or sales.

Pay per click is how it sounds. Each time a potential shopper clicks thru to your site, you pay a fee. While the fees can be very low per click, it is crucial to monitor your visits closely. If your conversion rates on certain products are low, that is if shoppers are looking but not buying, the clicks are costing money and you may want to discontinue listing those products. That can be a real headache. For instance, if you have 500 products and you’re listed on three PPC shopping search engines, you could be monitoring 1500 products. That’s a lot of man hours. And in many cases it is difficult to get that specific click information from the comparison search engines. In essence, you could be draining significant profits from your business while shoppers visit who have no intention of buying.

Cost Per Order (CPO) Revenue Model on the Rise

Shopping.com will begin testing a universal shopping cart feature over the next couple of months. The service allows shoppers to add products from multiple merchants to a single Shopping.com cart and purchase those products through Shopping.com. The payment system will be powered by PayPal. Merchants participating in the test will be charged on a revenue-share basis as opposed to the standard cost-per-click model. Shopping.com / Paypal will process the transaction and send the necessary information (name, shipping address, quantity ordered, etc.) to the merchant for order fulfillment. There are two ways merchants can receive this information: via FTP and via the Merchant Account Center. The merchant will then send Shopping.com a status update when the order is processed and Shopping.com will relay an order confirmation to the buyer. Buyers can find out about their order status from their cart account on Shopping.com. The buyer will receive one order number even if she buys from multiple retailers. The test isn’t live just yet.

Positives from the Merchant Perspective

Shopping.com’s universal shopping cart should increase conversion rate. Merchants only pay on a CPA basis thus removing all risk from the marketing channel (merchants should now feel comfortable listing entire product databases)

Negatives from the Merchant Perspective

Ceding customer ownership to Shopping.com (Shopping.com controls all communication with the customer. Merchants can’t access a customer‘s e-mail address or phone number. Merchants lose ability to upsell/cross-sell other products during the buying/checkout process which lowers the average order size. ]

Concern about Ceding Customer Ownership in CPO Model

In a proprietary survey of more than 30 online retailers at the 15th Annual eTail Conference in Philadelphia, 81% of the online retailers indicated that they probably will not implement Google Checkout primarily due to the concern about ceding customer ownership to Google. Specifically, online retailers were concerned that Google limits online retailers’ ability to market to customers directly. The online retailers also expressed concern about disintermediation, lack of system flexibility and the perception that Checkout provides Google too much visibility into their business, especially relating to Google search-driven conversion rates. Online retailers were concerned that Google stores all customer information, and Google Checkout limits an online retailer’s ability to directly market to a customer via e-mail. Given the low cost of e-mail marketing once a customer has been acquired, the e-mail marketing limitations placed on online retailers who implement Google Checkout may slow the rate of adoption of Google Checkout.

Online retailers also expressed concern that Google undermines the ability of an online retailer to directly connect with a consumer by requiring Google Checkout users to go to Google Checkout to make changes to orders and transactions instead of to the online retailer’s site. This requirement once again prevents an online retailer from marketing or cross-selling to a user when they return to the site to check order status or to make changes to an order. Similarly, some online retailers did not like how a Google Checkout transaction ends with a Google Checkout page instead of on the online retailer’s web page.

M&A; Activity in this Space is Very Vibrant

Shopzilla est. 2006 earnings = $50m
Shopzilla (acquired by Scripps) deal value = $560m or 11.2x est. 2006 earnings

PriceGrabber est. 2006 earnings = $35.25
PriceGrabber (acquired by Experian) deal value = $485m or 13.8x est. 2006 earnings

Shopping.com est. 2006 earnings = $22.8m
Shopping.com (acquired by eBay) deal value = $476m or 20.9x est. 2006 earnings

Internet Retail Marketplaces – The Landscape at Glance


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