Foreign Perspectives

Archive for the ‘Business’ Category

Let’s face it, many people would love a job where they could sit out on the beach and claim that they were working.

Whilst it’s clearly not an option for everyone, there’s getting to be quite a growth in information jobs which would let you do exactly that. Well, in principle anyway: as always, it’s rarely so simple as it might appear.

If you consider the very popular route of blogging, you’ll find that the vast majority of blogs don’t make any sizeable amount of money. Why? Well, the normal route of using adsense doesn’t work particularly well with sites with dynamic content as it usually takes adsense a couple of days to get the keyword targeting right by which time your blog will have moved on and a different set of keywords would be relevant. Secondly, you need major traffic or very well targeted traffic for affiliate schemes to work.

However, there is the option of doing sponsored posts which can be profitable even with relatively low traffic volumes. Typically you can make around $20 per day on a site with PR2 or above by writing three or four articles each day of, usually, 50 to 200 words each. If your blog gets to PR5 or over you can do really well with this option.

Other potential options are selling e-books or charging for subscriptions which are popular with some making money online blogs. There’s even SubHub which might eventually evolve into a worthwhile venture for the participants although at the moment it’s mainly an article repository for Internet business articles with a sideline in running up and hosting custom blog templates (at a rather exorbitant price).

Naturally, you don’t need to choose one single route to making money online. Personally, I do sponsored posts on blogs and also have a range of adsense funded sites with subscription options.

We’ve lived for decades, centuries even, in an era when prices are, on the whole, expected to increase year after year for the vast majority of goods.

The only category of goods where we are familiar with the effects of deflation are electronic goods and in particular computers so it’s helpful to examine how we treat those. For these there is the expectation that each year will see computers that are a little bit better than their predecessors and additionally they’ll be cheaper. What happens therefore in our buying decision is that we wait until we actually need a new computer before buying one. Now in respect of computers “need to buy” is slightly different from normal products in that there is innovation in the software too which forces us into purchases that would otherwise be un-necessary: that would be unlikely to happen with a normal product.

On the other hand, in an inflationary environment we buy a car now rather than next year because we can be confident that the car will be more expensive and so it is with pretty much everything.

You can even see the effect yourself by considering petrol prices. Until a month or two back I filled the car as often as possible on the basis that the price was rising quite sharply and could be expected to continue doing so. Then things changed as prices started going down very sharply indeed. The approach then was to fill the car only when absolutely necessary as that would be likely to get me the lowest price overall.

In fact, deflation might be a good thing to have but the snag is the period of adjustment that would be required would be extremely painful for everyone. The change from a “buy it now” attitude that’s relevant in an inflationary environment to a “buy it later” attitude appropriate for deflationary times means that factories build up stockpiles and therefore need to cut back on production and the jobs associated with it ie unemployment jumps. At a more personal level, house prices drop dramatically both because of the increased unemployment and because people are moving to a “buy it later” mindset.

One side-effect is that innovation is forced upon many industries which is usually a good thing to happen. However, it’s not an option for a considerable number of products: when was the last time that there was a really innovative potato?

On the whole, it probably is a good thing, it’s just that the transition period would probably be far too painful for governments in general to accept that.

I run a series of interlinked holiday accommodation listings sites which started as something of a sideline for me but which is slowly becoming a significant income generator for me.

Now, in the early days it was quite clearly a straight listing service. I typed up the entries as they came in and they were displayed on the site as a great big list. Nice and simple if somewhat time-consuming.

As it grew, I figured that a database was the way to go and in the second year that went live. By then the original 20 properties had grown to over 100. Mark 1 of that simply replicated the original hand-produced site and a version of that is still around to this day because the hand-produced format is much more effective in SEO terms than a written for database site is for various reasons.

With the dramatic reduction in the work required from me to actually add the information, I broadened the amount and variety of information that the property owners could add. That increased so much that I figured after a while that I should write a new-generation version of the original site to run alongside the original version but targeted at a different market. The increase in information meant that properties now had a little website each with several pages on it.

Interestingly though, I’ve recently come across a free accommodation property site that has come at the problem from the opposite direction. What they do is get the property owners to add a whole lot of information and they produce a little website for them which gets listed by them.

What’s clear is that we’ll both likely meet in the middle several years down the line as I’m in the process of souping up the mini website that my listing service generates and already some people are quoting that address as “their” website address which presumably will become more common as time goes on. In fact, it’ll become more and more of a website generation facility over the months to come as that’s my main area for development this year.

The question next year though will be: how do I promote it to the owners? The listing service aspect will clearly remain but there’ll also be the aspect of building almost custom websites for the owners (surprisingly easy to do). In fact, thanks to the recent change of hosting service I’ll even be able to let each owner use their own domain to point to their “mini” website (which will potentially be larger than many “proper” websites).

We were all assured just two months ago that we’d seen the last of the building society emergency takeovers with the demise of the Dunfermline but now it seems that we’re starting on yet another round of emergency takeovers as West Bromwich seems to be in its final days as an independent society.

The snag now is that Nationwide appears to have more than enough on its plate already and notably declined to take over all of Dunfermline which was a change to its previous approach of absorbing troubled societies in their entirety and merely took on the savings and regular mortgage parts of the society, leaving the part that caused the trouble well alone. Whatever society takes over the West Bromwich that seems likely to be the approach that they will take as otherwise those problems could well pull down the new owners as well.

Aside from the Nationwide which is probably too busy trying to integrate the societies that it has already picked up, the obvious choice would appear to be the Coventry although that seems likely to involve a number of branch closures over time given the similar geographic spread of the two businesses. The other problem is that the societies have a similar number of branches thus a takeover would pretty much double the number of branches to be looked after which could stretch the management a little bit too much in what are already difficult times. My bet is that, if it is a building society takeover, it will be a toss up between the Chelsea and the Yorkshire who will do it.

But what about the remaining building societies? Falling foul of the recent downgrade were West Bromwich, Chelsea, Britannia, Coventry, Nationwide, Newcastle, Norwich & Peterborough, Principality, Skipton and Yorkshire. Of these, only Chelsea appealed and Britannia is currently being taken over by the Co-Operative Bank.

As always, the safest place for your money remains National Savings.

Although you might not think there was a whole lot of scope for advertising in a medium that only gives you 140 characters to play with, there are a growing number of ways to advertise through Twitter although whether or not they’re actually effective is an entirely different question.

The means for handling the advertising varies quite a bit as you’d expect for a fairly new type of media. For instance, since the tweets themselves are rather fleeting affairs on the tweet streams of the more prolific twitterers, Twittad takes the approach of using the background image to place the main advert and uses the tweet stream to announce that the twitter account is sponsored. The system works in a similar way to blog sponsorship platforms which is to say that you write up a little profile of your twitter account and advertisers can choose you based on that or alternatively you can choose some advertisers. Payout seems to be around the $2.50 a week level which is OK in that you don’t need to do much for that.

Another service that’s possibly more interesting to the advertisers than the twitterers is Twtad which works on the pay per click model. The problem with this one is that the payment is typically 5 cents or less which would be alright for a system that was entirely automated but this system isn’t. Since click-through is typically quite low this system isn’t really worthwhile unless you have LOT of followers (10,000 or more perhaps) and if you have then you should be able to pick up more money elsewhere.

A more comprehensive version of this is Be a Magpie which is an automated service offering pay per view, pay per click, pay per lead and pay per sale. You can set it so that you have to pre-approve tweets but leaving it on automatic seems best and will put a Magpie tweet every 5 ot 10 (you set the interval) of your tweets. All else being equal this one seems by far the best bet for the twitterers in that once it’s set up it can be fully automated. It’s good from the advertisers point of view too in that it offers the four different payment methods.

The latest entrant seems to be Betweeted which I gather operates on the basis of the twitterer choosing advertisers to tweet about so is quite similar to the usual blog sponsorship services. So far it’s only for US bloggers and nobody else can even register to look at how it works.

So, you can advertise via Twitter, but the question is: should you? If you followed the original principles of Twitter ie that it’s a service for “friends, family members and co-workers to stay connected” then the answer is probably not. After all, you wouldn’t hand out advertising leaflets to these people, would you? However, the service has moved a long way from that and most people have followers who are complete strangers and lots of others are tweeting to promote themselves or their business, in which case the answer is: why not? Aside from advertising third parties, more and more companies are moving on to Twitter to promote their products and, of course, there’s always been the self-promotion of bloggers tweeting their posts (some cross-promote their tweets on their blog) so advertising is very much a feature of Twitter that seems here to stay.

Finally, there’s the question of effectiveness of Twitter advertising ie does it actually work? Well, I’ve been tweeting my own blog posts for a while now and it would appear that it’s quite an effective way of gathering new readers for the blog so presumably it would be equally effective for advertising tweets, or at least those that fit in with the general interest of the followers.