For anyone who used to make mass content sites and knows a lot about the issues involved in that task the rising profile of Demand Studios is an interesting one.

So is this business model a mountain too high for everyone else to climb? Endulge me here in my normal thought process…

Here is a few articles to get you started: -

http://thenetsetter.com/blog/business-models/quality-vs-quantity-approaches-to-web-publishing/

Here the creator of the Envato network discusses the plans of Demand Studios to scale up their content manufacturing

http://www.demandstudios.com/publishers/content/

And on their own site they talk about their workflow of: -

Pass search predictions to their algo
Run that through their ad revenue algo
Output a title
Have an outsourced army of content creators produce content to suit
Profit

Now sitting abusing the non-free wifi at my local soft play centre with Laura (I wasn’t paying the price they wanted so….) I cant help but start to work my way through the mechanics of this business model…

Article cost $15 (thats pretty high imo)
Copy Editor $1 per article (are you joking?)
Site overhead $1 per article (estimate)

So each article has to get a return of $18 to be in profit…
Hmmmmm

Now comes the fun part
If we assume a return of: -
17p per click
CTR of 2%
We need 5500 people to visit that article to get a return
Assuming they have a safety buffer of 1 in 3 articles that doesn’t pay back
We need 7500 people ish really to be safe

And we assume that they want a payback in 6 months max they need 42 visitors a day to that one article

Well thats possible with decent domains to start with and if that title choosing algo is reliable

Bear in mind that if it is the return per click will be far higher that my low assumption.

Interesting stuff….

Think Visibility was a fantastic experience last September and the same team have announced the next date.

Its March 13th 2010 and so I now have to make my mind up whether to attend again..

So shall I?

Comment abuse welcome…
I already know the opinions of certain people

A few times recently I have mentioned that I am preparing to sell my ‘Adsense Flat’ to friends and people always seem surprisingly interested in what my ‘Adsense Flat’ actually is.

A few years ago it was possible to create a decent amount of money from Google Adsense adverts simply by automating the creation of websites and because it was automated you could work out ways to scale the whole thing.

How it all worked

Register lots of .info domain names

Regfly at the time had their ‘Super Fridays’ where you could buy domains in bulk via their API for just $0.99 a piece – we used to get between 2-500 each time

Shove them all on one or two VPS hosting accounts

They were in fact all served by a single index.php file on the box, we dynamically determined the requested domain and then served the cached content into a set theme

Create a system that goes and gets content from somewhere

It doesn’t matter how we got this content but it was pretty poor spider food at best if I am honest

Get it indexed

All sites in a batch were cross linked and just 1-3 inbound links from elsewhere would be enough to get the sites crawled and the majority indexed

Place Adsense on the sites

The clicks were tracked and any site that we sent enough traffic to got contacted for a direct relationship

Await the site being de-indexed

I used to track ‘burn rate’ as a KPI of how long the domain remained indexed for (My KPI was the time between full crawl and 75% de-index)

Then repeat this again and again using the keywords that worked well

Heres a post from 2007 showing some stats from one batch

Why it stopped working as well

Well Google decided that the lack of value in the sites they were allowing us to make was in fact more harmful than profitable so they embarked on a tirade of banning people for spurious reasons (I eventually reached account number 7 and Google still owe me £8.5k that they will never pay)

How much did people make and what did they use it for?

Here is where I am different, many people made good money. Here is a screenshot of one of my Adsense accounts from the time (NB its actually a scan of a printout I made and kept on my office wall for a while – That account is banned now like so many others….)

As you can see thats $9,000 in 30 days

Most people spent the money on better computers, cars, gadgets and in one memorable case a year long holiday across the globe

I however invested some of mine in a flat in the nearby coastal town of Cleveleys

Here is the listing from www.houseprices.co.uk showing what we paid for the flat (There is no mortgage on that property)

And here is a screenshot of where it is – handy for a paddle in some brown freezing water

Its a one bedroom flat and has a retired lady called Veronica sitting in it as our tennant.

The plan was always to use the capital from the sale of that flat to eventually clear our main house mortgage.

Veronica has taken up an offer now to move into one of the many many houses owned by my mother and father in law so we will be selling it slightly earlier than intended but that all depends on what interest we get in it when it goes on sale.

Here is the place she is moving to – they dont look much these places but its ideal for a retired lady, easy for the shops and always in demand

So thats really the story of my Adsense flat, I do miss the easy money where the script was the money maker.

I have moved to outsourced teams and affiliate nowadays, whilst that doesn’t mean that I need to work much harder it does mean you have to manage much more.

2010 I will be making more time to get back to generating cash away from the client work.

I just wanted to say thanks, thanks to all the people who provided the quotes you now see on the sidebar of this blog.

For years I have worked with the name SEOidiot and part of that is down to my general opinion that I am in fact an idiot…

When you ask people like DaveN, Jason, Joost, Rob, Ralph, Julie etc to give a quote you never expect them to say quite what they did.

I need to start showing that confidence in what I write here too

Well its that time of year again where we all plan what we are going to tackle this coming 12 months…. sigh…

For this blog however we are going to see a change in the content.

Most of my personal ramblings will head off onto Posterous
This blog will be far more focussed on the following subjects: -

Practical SEO
Guides, tips, advice

Experiments
Some fun, some serious

And above all…

The business of making your living online

Automation
Outsourcing
How to’s

Anyway.. Thats the road we are headed on this year