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USPS Reports $476 Million Loss in 2 Months

Posted on | January 4, 2010 | No Comments

Wow. What a surprise…

I was talking with a buddy of mine late last year (around the time the USPS was losing this half billion) about the USPS and their lame business model. They have done everything possible to encourage their demise. Besides raising rates for first class stamps to the point where consumers stampeded to online options, they destroyed the catalog and direct mail Standard Mail industry with wacky new database qualifications and ridiculous rates.

I don’t think the postal service is going to fold — it can’t — but they’re going to have to go through some drastic changes very soon.

Anyway, let’s look at their business model. It’s not too complicated…

First off, you have a business with all the systems in place to successfully carry out all it’s functions at a steady operating cost. You pretty much know how much you need in sales every month to break even. If sales volume falls below a certain level you start losing money. At this point you have two choices. You can raise your prices or increase sales volume.

So what does the Post Office always do?

Of course, they raise the prices. And they’re doing it an ever increasing frequency. Even worse, they raise rates when the economy is in terrible shape. Makes sense, right?

But what would happen if they did what a smart businessman would do in the same position? Remember, you  have a fixed operating cost (unless fuel costs fluctuate wildly). If you don’t want to start laying off employees or closing up stores there’s only one thing to do.

Increase sales volume.

And what’s the best way to do that? Of course the answer is to increase demand. And the only way for the USPS to do this is by lowering their prices. (It works great for Wal-Mart)

Now I don’t know if this is the answer but the only way to find out is through testing. If you boost volume it’s found cash flow.

Anyway, get ready for another postal rate increase. It’s the only business model they know.

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If the USPS lowered the rates would you use the service more? What do you think? Your comment is welcome!

Category: Uncategorized

An Introduction to Local Search Engine Optimization (LSEO)

Posted on | November 4, 2009 | 2 Comments

Over the last year or so I’ve been calling the specialized SEO work a small business owner must accomplish to get his business and web pages indexed on Google, Yahoo and Bing Local Search Engine Optimization or LSEO.

This work includes getting a top listing next to the Google Local Business Results map and other directories, optimizing landing pages for consumer geo-targeted searches, building local citations and valuable backlinks to boost SERP position, and setting up geo-targeted PPC campaigns to enhance sales and marketing strategy.

Since this type of optimization work is unique in many ways I thought I should officially “coin” the phrase.

Maybe it’ll catch on. :-)

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Love to hear what you think? Leave a comment!

Category: LSEO, SEO

Small Business Internet Marketing – Pay Per Click Advertising is Just The Beginning

Posted on | October 20, 2009 | No Comments

It seems that a lot of small business internet marketing services focus mainly on Pay-Per-Click (PPC). This is a mistake for several reasons…

You see, while local PPC is the best place to start to organize an online campaign, it shouldn’t be your only strategy. The old saying, “Don’t put all your eggs in one basket” comes to mind. Counting on Google for your entire online marketing campaign isn’t much of a business model. If they change anything — which they are notorious for — you’re whole online campaign is sunk. Not good.

However, PPC campaigns are a mountain of information for a smart marketer. They will tell you what is effective in terms of keywords, creative, copy and much more. With this information you can scale your campaigns into SEO and offline strategy as well.

For instance, let’s say you run a PPC campaign. First, you split test ads for the highest click-through-rates (CTR). At the same time you test landing page content for best conversion rates. And then you can focus on what keywords are generating you the best ROI.

With this information you can focus efforts on optimizing special landing pages for your best keywords. In a matter of months using SEO strategy you can dominate these keyword phrases and enjoy high quality traffic from natural search. What’s nice here is the fact that through PPC you have already fine-tuned your landing pages for maximum conversion.

Now you can take these working models and test  offline marketing strategies to increase traffic. What’s more, you can use the ads, sales letters and overall marketing strategy from your proven online campaigns and replicate them for offline marketing in print, direct mail, radio and more.

And don’t forget, once you have your website up and running, and your online presence tested and proven, you can advertise your web address in all your current marketing efforts.

As you can see, a website can do a lot for your small business if you focus on PPC as a tool instead of just a sole marketing effort.

Category: Landing pages, PPC, SEO

Why Local Internet Marketing is Important For Small Businesses

Posted on | October 10, 2009 | 3 Comments

If you have a small business that depends on local customers you need to get a website ASAP.

Why?

Because more and more people are using the Internet to find local merchants. According to the Kelsey Group over 70% of U.S. households use the Internet to shop for local products and services. If you don’t have a presence online you are losing customers every single day to your competitors.

In fact, it’s a safe bet if you don’t start creating an online presence now, you risk being left behind…

Listen, gone are the days where having a website was a fad, something you could dabble with, or something that wasn’t really necessary for your business survival. You must take the Internet marketing channel seriously or risk losing customers at a frightening rate.

The good news is it’s not that difficult to establish an online presence. Depending on your business, you may be able to get by with a simple 4 to 5 page website and some specialized landing pages for Local Search Engine Optimization (LSEO) and Pay Per Click (PPC) campaigns.

Putting up a website is easy these days. I would bet you have an employee that could do it for you in an afternoon. If not, you can easily outsource the work, or simply hire an employee  experienced with internet technology to take advantage of the amazing opportunity.

Amazing?

Yes it is. Because with a small budget you can dominate the local online marketplace for your goods and services. Even better, as a small business owner, you can out-market your largest competitors.

You see, search engines like Google don’t care how big you are, they care about the content you provide and how relevant you are when someone searches for specific keywords. Their business depends on providing a quality search experience. If you help them provide this you become a valuable partner to them and they reward you with better page rankings and lower PPC bid costs.

Another important factor is how long you’ve had a presence online. An aged domain name is an important factor for search engines like Google. And you need to establish links to your site which is a huge factor for a high search engine results page (SERP). When you have a high SERP you will get more “natural” or “organic” traffic from search engines. This traffic is free and converts at a higher rate.

Sure this all takes time. The nice thing is with the Internet and PPC is you can start driving traffic in less than an hour. You can test and track every campaign for results and conversions. You can start profiting from this advertising medium right away.

And while you’re doing this you can work on your SEO. With an organized, systematic approach you can be dominant in your SERP’s in less than 6 months. For those who would like to get started right away, The Small Business Guide to Internet Marketing for 2009 gives you a comprehensive step-by-step approach. Get your guide now while it is still free.

Here’s the BIG question: Do you want to take advantage of this opportunity right now when the going is much easier, or miss the boat entirely and let your competitors gain all the new customers and the advantage?

The answer is obvious. You cannot ignore local internet marketing any more. It’s here to stay and it’s only growing stronger every day. My advice to all small business owners is to get started right away.

Category: PPC, SEO
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