Saturday, September 02, 2006

What is Virtual Real Estate?

Virtual real estate or a VRE site is a term coined by the online sales success John Reese. John Reese is also known for his legendary 1 million dollar sales day selling his traffic secrets course. He also covers industries with promising virtual real estate potential in his monthly membership site The Reese Report. You can check out my review of the Reese Report.

VRE sites according to Reese are a website or websites that become valuable because they can carry and be monetized with Google Adsense(tm) or the YPN advertising network of Yahoo! The Virtual Real Estate or VRE business sector is becoming a burgeoning industry online. This began in earnest once Google started to allow website owners or publishers to carry Adsense™ contextual based ads on their sites.

In the past if you had a site that wasn't a viable ecommerce site you were out of luck doing business online. The only other options was to sell on eBay or do affiliate programs. Running a business based on ad revenue was really the domain of major traffic sites like the MSNs, Googles, and Yahoo!s of the world.

The tide has turned in this regard and now small website owners can make significant income by placing Google Adsense(tm) or Yahoo! Publishers Network (YPN) ads on their sites. The VRE industry is more than a cottage industry. I have read reports from reliable sources that Google presently generates about 40% - 50% of its ad revenue from Adsense(tm). Since Google is like a 7 Billion dollar company you do the math.

This means some savvy web marketers will become millionaires marketing and reselling Adsense(tm) ads and related services. One such person is the Adsense go to Guru Joel Comm. Joel Comm is one of the most successful netpreneurs to profit and then leverage the earning potential of the Adsense(tm) windfall. Comm used extensive research on his sites with Adsense™ presentation to develop Adsense best practices to maximize the earning power of the ads.

Joel recounts how he started out only making less than 10 dollars a day in Adsense(tm) and later was able to make a 6 figure income on Google's ad program. Next Comm wrote an Adsense ebook that became a best seller on Click Bank. He then leveraged his knowledge to write a print version of the book to become an Amazon, New York Times, and Time magazine best seller moving over a reputed 4 million copies of his book! Joel Comm's insights are now standard Adsense™ conventional wisdom used by millions of sites to generate more click-troughs. You can see a short review of Joels Adsense Book .

On the other hand many Internet purists have disdain for the VRE gold rush and feel it is just a flash in the pan or fools gold. They make a point that too many Adsense(tm) supported sites are cluttering up the Internet with useless, valueless, and duplicate content. Even Google's criteria forbid people starting sites just for the purpose of generating Adsense(tm) revenue.

In the last year it is making SEO, blogging, and RSS visibility in its search engine more difficult. It is really cutting down on duplicate content and has strengthened a time based delay filter commonly known as the dreaded "Google Sandbox" to stop the get rich quick gold rush mentality of many Adsense(tm) entrepreneurs. For example if you start a new site it will usually take your 6 months to a year to get any decent rankings in Google.

Despite the fact the YPN network was late to the contextual ad potential of the online real estate of millions of partner reseller or affiliate sites it is making up significant ground.

John Reese rumored that from his own testing and others in his circles YPN pays a better percentage than Google. Since both these companies cloak their payment policies without full disclosure it is hard verifying these facts. However it is something you should test on your pages.

Although an Internet business can be started cheaply it is very time consuming building and developing your site into something profitable. This is especially true given Google's tough filters and algorithms. Despite a lot of Internet hype to the contrary most people won't run a business on the Internet that makes a fortune over night.

Since running an Internet business is so time consuming you have to make money to stay in the game and Adsense(tm) seems to provide a way to a least play in the high stakes Internet game. Adsense(tm) was my first true way to make any decent money online. It has made running an Internet business more than just a pipe dream but an obtainable reality. I shared my experience in this regard in a recent feature article with Fortune Magazine Small Business. You can see an excerpt at the Fortune Magazine web presence click here.

In the next part of our series we will examine if VRE sites are real digital assets for the average Internet marketer or just another sale of swamp land in Florida. You will find why we are just scratching the surface of the awesome power of virtual real estate that goes far beyond the Adsense(tm) and YPN discussion or debate. We will look at another good reason VRE sites become valuable with link brokering, online PR, and affiliate programs. Until then I hope and pray you are "Always On Top" in both your business and personal life.

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