These articles focus on specific aspects of Internet
Marketing. I tend to write about tests I've done, or about
online trends. You can also find more articles on my blog which
I update every now and then.
Chasing the Long Tail of
Here's an example of the type of articles I write.
Intellectual Property in your AdWords account.
If you set up your AdWords campaign well you will know that
certain keywords deliver highly profitable traffic to your
website. You will also know that most keywords do not. But
finding out which keywords are good can take time and the
process of uncovering the profitable niches requires analysis
and thought, testing and measurement.
I run one campaign that relies on just three keywords to
deliver a very steady flow of cash into my bank account. I
advertise a particular service using these keywords and get
paid a commission by the service provider whenever I deliver a
new customer to them. I don't get involved in lead capture or
anything like that for this campaign. I just drive targeted
traffic to the service provider's website via my affiliate
The same three keywords have been highly profitable for over
18 months and generally generate in commissions 3 to 4 times
what I spend on clicks.
So would I be prepared to disclose these keywords to you?
Only for a price.
These keywords are responsible for producing an automatic
income stream for me and will probably continue to do so for
years to come. They are obscure. They took a lot of research
and ingenuity to find and I am now benefiting essentially from
the intellectual property I have tied up in my AdWords
Many companies have a huge intellectual property investment
in their Pay Per Click campaigns without realizing it. So I
thought it would be interesting to try and put some value on
this just so that advertisers became more aware of the true
value that a well-run campaign delivers.
I'll keep the mathematics very simple and so inevitably
there is some inaccuracy in my calculations. The point is to
demonstrate the principle rather than perform an accurate
assessment, something which would require actuarial skills.
So here goes.
Suppose I spend $500 a month on a particular campaign and
that it produces $1500 a month in income. My profit, which is
automatically generated, is then $1000 a month or $12000 a
If this income stream was going to carry on for ever (which
it won't) then we could give it a capital value of the annual
income divided by the current interest rates. If interest rates
are 5%, then the capital value is $12000 divided by 0.05 =
$240000. This is the amount of capital you would need to place
on deposit with a safe institution to receive the equivalent
Realistically I know that my income from this campaign is
much less secure than money in the bank but that doesn't stop
me making an estimate of its capital value.
Suppose I give my campaign a life-expectancy of just 2 more
years. That is 24 months of $1000 a month profit or $24000. (I
am not bothering to calculate the time value of money here
which takes into account the fact that money now is worth more
than money later. It is the magnitude I am after rather than
If these figures applied to my campaign, each keyword would
be worth an average of $8000 to me. If the campaign had a
life-expectancy of 3 years instead of 2, the value would be
$12000 per keyword instead.
These are shockingly large figures.
So the questions you should take away from this article
1. Have you ever stopped to work out what some of your
keywords are really worth to you?
2. Have you ever stopped to think carefully who you are
disclosing your campaign details to when you ask someone else
to manage your AdWords account for you?