Monday, September 18, 2006

How to Prosper Beyond Virtual Real Estate

By Kamau Austin, Stay-at-Home Dad and Searchpreneur©

In my last series of articles on "Prosper with Virtual Real Estate and Digital Assets - Parts 1, 2, and 3 I defined virtual real estate and digital assets. We explored virtual real estate (VRE) sites as sites primarily embedded with Google Adsense™ or Yahoo Publisher's Network (YPN) ads. The purpose of these sites is to be monetized with PPC advertising from Google, Yahoo! and new players in this industry. We did try to discuss this new industry with the realism. We revealed the love and hate relationship Google and the other search engines have for these sites in this regard.

For a recap of this series visit the Search Engine Plan Blog at:

Despite the fact that these VRE sites may make Google close to 4 Billion dollars this year it is in a war to stem the tide of Adsense™ with quasi-content or duplicate content overwhelming quality and unique sites within the Google index or database. In short it doesn't want duplicate or low quality content miring its organic results within the search engine result pages (SERPs). Needless to state the resistance to Adsense™ focused sites by Google will make it difficult for most people to make a windfall of cash within the program despite the assertions of some Internet gurus who claim to generate hundreds of thousands of dollars a year in the Adsense™ program.

Furthermore, I explained despite the aforementioned difficulties generating VRE cash, at least with the assistance of Google's free organic search results, this industry was here to stay! Google and Yahoo! will soon be generating 5 or 6 billion dollars with these burgeoning industries. Moreover, since most people only check up to the first two or three pages of the SERPs this gives the search engines somewhat limited inventory that has high value.

With only 3 pages worth bidding on (although for a seeming unlimited amount of keywords) the search engines need publishers to provide them unlimited inventory to display their advertising. In short Google and YPN need online publishers in order to expand and make more money for their stockholders. Google will never make its targeted goal of 100 Billion dollars in revenues without a ubiquitous visibility on the over 20 million business websites presently online.

The ambiguity in which Google™ views and treats VRE sites has created tension within the Google culture (I call it the warring souls of Google) and threatens to tear it apart. For many in the web marketing community Google seems to be almost schizophrenic demonstrating a multiple business personality. On one side you get the kinder "do no harm" Google and on the other side you get the all power seeking "Google Gods".

Despite these challenges, in my last series of articles I suggested ways to prosper with VRE sites using deficient search engine marketing.

Most importantly we developed a working definition of what is a digital asset. I hope you would agree that VRE sites could qualify as digital assets. This is because they can work to make money for you -- without you physically having to be there working. As we pointed out in our last series of articles digital assets and virtual real estate making just a few hundred or thousand dollars a month can generate as much or more cash flow as traditional real estate. Just think about it, you would have to invest tens of thousands of dollars and commit to a mortgage of hundreds of thousands of dollars to rent units that generate the income of even small VRE sites. Plus with VRE sites you don't have the landlord tenant issues.

We will finish our discussion of building digital assets tomorrow.

No comments: