money and the internet
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TRANSCRIPT
How the internet makes money from you
(and how you can make money from the internet)
Part 1:
How the internet makes money from you
Books
In 2007 in the UK:
118,602 new books published
758,125 older books still for sale
The internet enables the market to find the books
Turnover: $19.166 billion
Net Profit: $645 million
Auction site
International bazaar of tat
eBay helps you find the person who wants your tat
for a fee
Turnover: $8.46 billion
Loss: $348 million
Search engine
And email.And news groups.And news reader.And photos.And maps.And videos.And the rest.
People like to be able to find stuff
Google's method was better than any other
No barrier to using Google means a huge audience
A huge audience is attractive to advertisers
Google is the biggest seller of small ads ever seen
Turnover: $21.796 billionNet Profit: $4.227 billion
And 20,000 employees
That's over $1,000,000 in turnover for each employee
Do it best
or
Do it first
(Preferably both)
A massive market can make the uneconomic profitable
The internet offers:
VolumeandReach
(You don't need both)
Part 2:
How you can make money from the internet
Option 1:
Do it firstDo it better
Invent the next big thing
(This is quite hard to do)
Option 2:
Find an under-served market
Find your niche
Find a product
Affiliate marketing
Put up a sales page
Promote it
Promotion the cheap way
Social media - blogging - commenting - extra sites - articles - forums - social networking - Twitter
Raising your profile on Google Search
This will take a lot of time
This will take a lot of knowledge
Promotion the quick way
Pay Per Click - buy traffic - Google AdWords - tools to identify good keywords - information searches vs buying searches
Pay to bring your site to the market's attention
This will take a lot of money
If you get it wrong, you're out of pocket
Option 3:
Create your own product
Product that can be delivered digitally
- e-book - audio - video
Make it available to affiliates
The problem of reaching the market is no longer yours
But you do need to create a product...
Speaking of which...
You all have a major advantage
You can code
By the end of March, 37 million of these were sold
(iPhone and iPod Touch combined)
Apple COO Tim Cook:
The iPod touch is "a runaway hit" whose success is "clearly driven by the App Store."
1 billionth app sold last month
Buy an Apple.
Register as a developer.
Code.
Sell.
Flickr images
http://www.flickr.com/photos/ktheory/21905281/http://www.flickr.com/photos/yourdon/3059450003/http://www.flickr.com/photos/deadling/2228744677/http://www.flickr.com/photos/mcmorgan/2975104329/http://www.flickr.com/photos/judith-angharad/2325354952/http://www.flickr.com/photos/racecarphotos/2865296496/http://www.flickr.com/photos/soldiersmediacenter/3364818319/http://www.flickr.com/photos/shazbot/1639273/http://www.flickr.com/photos/jaqian/346525494/http://www.flickr.com/photos/komunews/2061351199/http://www.flickr.com/photos/jamespaullong/281535082/http://www.flickr.com/photos/compassionateeye/2868595873/http://www.flickr.com/photos/yomanimus/102798907/http://www.flickr.com/photos/lifeontheedge/279888237/http://www.flickr.com/photos/shooz/3097784/http://www.flickr.com/photos/bcmom/218118754/
Questions?
[email protected]@trev_roberts