Understand and Visualize Network Effects
Jan. 30th, 2008 by Aaron WallWhen markets are healthy and growing that growth can hide major issues, but when the markets swing toward a loss the winners are separated from the losers. As the markets consolidate and the thin arbitrage opportunities fall away the market leaders own a much bigger piece of the market.
The above chart could just as easily be a finance chart comparing Google’s 5 year performance to Yahoo’s, or any other industry undergoing heavy consolidation. Google’s brand is search. Yahoo’s brand is ???
Many people view you how you view yourself and label you with the labels you attach to yourself. Something to consider when creating a new business in a saturated field.
If you are not considered the #1 site in your class / vertical then you need to change your brand, find ways to add value (like editorial content, unique data formats, syndication, or open APIs), build an organic advantage (using a strong domain name, a great site design, and through public relations) or do something else to change the rules.
About the Author
Aaron Wall is the author of SEO Book, a dynamic website offering marketing tips and coverage of the search space, free SEO videos, and free SEO tools. He is a regular conference speaker, partner in Clientside SEM, and publishes dozens of independent websites.
About The Author
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June 2nd, 2008 at 9:38 am
I love “tough times”. I pushes a lot of my competition out of business and forces me to run a better business.