What do these companies have in common?
* eBay
* Google
* Craig’s List
* MySpace
* FlickR
Yes, they’re all Internet-based companies.
And yes, they’re all wildly successful.
But that’s not what I’m talking about.
Here’s what I’d like you to focus on:
None of these companies produce their own content!
* eBay gets its content from buyers and sellers
* Google gets its content from other people’s web sites
* Craig’s List gets its content from advertisers
* MySpace gets its content from teen and tween bloggers
* FlickR gets its content from gregerious photographers
We could easily add Amazon and Yahoo to this list.
Not only do these companies not produce their own content, they also get their content for free, largely from their customers (and in Amazon’s case from suppliers.)
And that’s not all.
Though some of these businesses use paid advertising (and some do not), in every case, the critical ingredient in their success story was word-of-mouth, also known as free advertising.
Free content, free advertising, billions in the bank.
What a surprising formula for Internet marketing success…
The model of “build it and then use direct response advertising to grow your business one stand-alone sale at a time” still applies, but clearly it’s not the only model.
And on the Internet, it may not be the most powerful one.
This year, the System Seminar will focus on this important force in Internet marketing and how you can apply it to your own business. Make sure you’re signed up for the free “Pre-System” conference calls which will start in February.
http://www.TheSystemSeminar.com
– Ken McCarthy
P.S. For over 25 years I’ve been sharing the simple but powerful things that matter in business with my clients.
If you’d like direction for your business that will work today, tomorrow and twenty years from now, visit us at the System Club.
Another great observation, Ken. I’m working on a project of my own that applies the principles you talk about here, even though I’m a full-time direct response copywriter. I can’t disclose the project until it’s ready. The success of it relies on other people’s content and word-of-mouth. Should launch in another month or two… 🙂
Ken,
Fantastic observation.
The beautiful aspects of allowing or enabling others to build your content and product list for you are many.
Not only is it easier but it can happen so much faster and on such a greater scale than if you attempt to do it yourself.
Furthermore, the material produced by others and for others is what they are looking for, not what YOU might think they are looking for.
I’m looking forward to the seeing you and the great line-up in Chicago this May. I’ll be there with my IM bells on.
Sam
WHY PAY when you don’t have to?
Even though you’re talking about FREE content, it’s “right on the money” Ken.
Indirectly, this is how I see people using the Publicity and PR they get for free marketing material production. For example:
1) Post transcripts of conference calls (or parts of them) on your blog.
2) Turn those well-designed, professionally written magazine articles about you or your company into direct mailers offline
3) Edit radio interview recordings into Free Audio Marketing Samples, like we suggest at http://www.InternetRadioSecrets.com.
4) Turn video from a live event that someone else films into part of your Internet Infomercial on your site or create product.
Super brain stimulation, Ken. Thanks!
Wonderful observation, Ken. Brings up two things for me:
1) How can I harness the power of free contant and free adverising as a one-person business. I have no desire to expand in ways that require hiring employees.
2) Will there ever be a Law of Diminishilng Returns regarding information on the Internet? Or will the growth of new info keep spurring the growth of new ways to access it better so users don’t become overwhelmed or discouraged.
You can be a one person business and cover a lot of ground if you develop relationships with solid vendors.
Also having one solid partner seems to help. Yahoo, Google, FlickR, and many other Internet and business success stories are rooted in a partnership. Even Microsoft and Apple started as partnerships. (I am not saying partnerships are easy by the way.)
Dick Benson operated several of the biggest paid subscriber newsletters in the world (one had over 800,000 paid subscribers) with just his daughter and
a fleet of trusted vendors.
If you haven’t already, get and read his book:
http://www.realmarketingbooks.com
About your second question, clearly the growth of information on the Internet is CREATING opportunities. I don’t see the need for sharp info-guides ever being totally filled.
More about the “free content -free advertising” model.
It all boils down to this:
Throw a party and then charge for admission.
eBay is a “party” of people buying and selling. Sellers are charged admission.
Google is a party of people who are searching the Net. Advertisers are charged admission.
Same deal with Yahoo though, so far, Google has done a better job of making advertisers welcome via their AdSense and AdWords programs.
MySpace? FlickR? Same deal.
The other similarity is that sites like these PULL.
Yes, advertising helps to build an audience, but the central dynamic is that they ATTRACT prospects and customers by offering something of ONGOING value.
Note the word “ongoing.”
Your goal is to become the central meeting place for the people in your marketplace.
It’s not unlike being the sponsor of an annual conference.
Once created, it’s a very lucrative and steady position to be in.
Great observation, Ken.
Another twist on this is what I do with PR LEADS. I get my content from another source and resell the content, but also add value by training people how to respond to reporters. It is a win-win-win — for me, my clients and the creator of the content.
I’m looking forward to seeing you this May at my second System Summit. Thaks for sending me the CDs. Very worthwhile info on those!
Dan Janal
Founder
PR LEADS
http://www.prleads.com
Other hugely influential forms of free content are testimonials, reviews and feedback.
Testimonials provide an opportunity to convey real world benefits at a very human level. I often leave in some typos and certain strong personal styles of writing.
Product reviews provide supporting evidence for claims made in the sale letter. I am influenced not only by the content of a review but also by how well it is written and how cogently it hangs together. A good review by an impressive writer is doubly strong.
Feedback demolishes buyer scepticism about the authenticity of the supplier and their likely hood to deliver both in terms of the physical product and the claimed benefits. Repetitious feedback about quick delivery or customer support fills me with confidence to complete the order form.
My experience is that key word density and variation in these types of free contribution are close to perfect and need little or no change.
Well Ken,
It looks like you’ve done a good job of getting other people and me to post our content here and help build your blog.
Looking at some of the other “comments,” they’re veritable articles.
Only two reasons to do that come to mind.
#1 – Super-inexpensive advertising on a high-ranking site.
#2 – Link backs for the search engines.
Maybe I’ll just have to write an article about this and post it now to my site…
Very interesting, Ken.
Regards,
Bal