WARNING: You going the wrong way!
Posted: Fri Aug 23, 2002 10:24 am
WARNING: You going the wrong way!
Some webmasters are great designs, programmers, but very poor business managers...
We all know ad banners will not pay the bills the next months or even years... so we need to play smart.
Losing some money is no problem... and nothing is wrong about that... no risk business are no business at all. People who can't live without paying every months bills are already broken... if they don’t have (nor can't find) the needed money to invest on a business, better not run the business at all. Amazon.com is the largest online store and it's still loosing money after all these years... people buy Amazon stocks thinking on the future, not the present. Any Internet business for immediate profit is either a big scam, or a big misunderstanding of how things are.
Most gaming web sites running today started with no risk at all (Internet advertising was something for sure if they get the traffic). That is no way to manage a business... not anymore. I believe this is the true point. Most webmasters don’t want to take any chances. Some don’t even want to run a business... but do make a few bucks and forget... money for sure, no risks! That lack or business perspective will decide soon who will survive in the next decade on the Internet.
Internet is just starting... the crazy competition will not last forever... and there will be no room for the weak. If you want to run a site for a few months/years, just forget it... close it... you losing time and money. However, if you plan for long term (5 years, 10 years...) you betting on a secure future.
The same webmasters forget the most precious thing they have is NOT the so called "premium contents"... the most precious thing is to have a brand known by a lot of people. Imagine a good known brand selling out to cheap crap merchandize... what would happen? First, a lot of money, but soon all is gone since the brand is no longer good. So, we can make it trusted again? No, once spoiled, it’s done. What is happening here is not selling to cheap products, but to make it less known... some people will leave, but the worst is not that... the worst is that you will not get the new users (an example of short view business). This is especially bad in a market target like computer games, because people grow up fast and start playing less... without new users, you are history in a few years.
Paying contents web sites are suitable for Wall Street Papers, Medical magazines, info for Lawyers... active people with much money to spend. They are not for kids, with limited budget, no credit card, and who prefer to spend the money in another game than on a site with tips for games... There is a big difference between busy Lawyers who want to get info immediately, no time to lose searching it for free (so they pay), and school boys with lots of free time, no problem to spend 20 minutes or more on Google to find the good stuff for free.
The golden rule to pay sites is: Membership fee should NOT be low! Yes, that's right... With a low pay you can't hire the staff, not make the site really better that it was before. Now comes the second gold rule: The pay site should be different that before! The same stuff is not ok. And the third rule says: contents must be really premium quality. You can’t do that with a low membership pay out (that only pays your bills).
Gamebanshee does this all in the wrong way... Low membership, same stuff, no premium quality. Take a look at the walkthroughs, for example. They are quite good for a free site. But if I pay I would expect much more... How about some videos, so you can actually see the tips in action? How about some Flash movies? How about some colour, easy to print, nice PDF documents? What about a premium forum with guaranteed answers to any question? What about new ideas, hum? Things that other sites don’t have yet... I have some ideas… you can’t imagine anything?
So what is the solution?
1. Keep the site open for free. Ads allowed, but no annoying full screen pop-ups, exit consoles or **** like that.
2. Reduce costs in the long run. Buy your own server (even better, build your own server)... that saves a lot of money. If you can’t see that, you really have no eye to the business. No outsourcing! That is for rich companies! Verio is a good provider but is expensive... so you can’t afford it... give up. Find a good ISP, host the server at home, office.
3. Don’t pay for software licences! All stuff you are paying for can be created by you based on Open Source / GNU solutions. If you don’t know programming find people who can help, or learn programming yourself.
4. Dont have your own hired staff! Find voluntears... Many of your users can help you. Dont use them just for forum moderators, tips providers... waste some time knowing them better, and then comit them deeper in the site design/programing/content creation. Give them some power to manage some sections at their will... that is required to have interested people. Reward the best, expell the others.
5. Revamp your site marketing... a news section is not ok. You need special campaings, contests, prizes to users. Surprise users everytime they come back. Tell them about new features coming soon... but waste the surprise. The design is kinda old too... for a long time I see the same.
6. Consider building an online store, to sell games, books, toys, merchandise. People will buy much more easly stuff that they will really get on the mail, rather than web site contents. Again, no outsource state of art pro shopping cart. Keep costs as low. No affiliates mumbo-jumbo.
7. Expand your site to new games... all the time! The key to some business with cost problems (like this) is to expand forever. Games industry is perfect because there is always new games coming out. There is a risk of getting things out of control if you dont plan well and don’t know what you doing.
8. Bet on foreign markets. Localize your site. Most americans think the world is the US... well, guess what... it isn't! You don’t know Chinese language? Ok, don’t need to learn. Find people who can translate. The same with European Countries, and Brazil. Currently, there are already more internet users in Europe than US. But in a few years, China, India, Indonesia, etc. will make us even smaller in the global world.
9. Start positioning yourself to partner with a large network. You can live alone. Please don’t read this wrong... Not that 'partner' you got now! You do all the work and they got 50% just for processing the credit card! What a deal! Major portals, ISP providers, web hosting, online stores, are looking for traffic. But not that dumb traffic for the past years (that's what ruined Internet ads)... people wanted any kind of traffic because they were paid CPM for banners. Want to brand teen sports wear? Want to sell new 3D cards? These businesses will pay you if you provide them the right traffic. Maybe they don’t pay you the traditional way, i.e. per banner impression/click/lead... maybe you all create a large network and share the profits. But not a network of games sites!!! You know what that reminds me? AdultCheck porno crap network. AdultCheck is rich, the sites are broken. You don’t want to join your direct competitors! You want to partner with complementary business, or even completely different areas (why not movies? why not magazines?...).
If you go for the pay mistake, at least, do it right... follow the golden rules, or else watch your dream sinking.
Any way, good luck... I will not pay for your contents, of course. :-(
Best regards
[[]]
Some webmasters are great designs, programmers, but very poor business managers...
We all know ad banners will not pay the bills the next months or even years... so we need to play smart.
Losing some money is no problem... and nothing is wrong about that... no risk business are no business at all. People who can't live without paying every months bills are already broken... if they don’t have (nor can't find) the needed money to invest on a business, better not run the business at all. Amazon.com is the largest online store and it's still loosing money after all these years... people buy Amazon stocks thinking on the future, not the present. Any Internet business for immediate profit is either a big scam, or a big misunderstanding of how things are.
Most gaming web sites running today started with no risk at all (Internet advertising was something for sure if they get the traffic). That is no way to manage a business... not anymore. I believe this is the true point. Most webmasters don’t want to take any chances. Some don’t even want to run a business... but do make a few bucks and forget... money for sure, no risks! That lack or business perspective will decide soon who will survive in the next decade on the Internet.
Internet is just starting... the crazy competition will not last forever... and there will be no room for the weak. If you want to run a site for a few months/years, just forget it... close it... you losing time and money. However, if you plan for long term (5 years, 10 years...) you betting on a secure future.
The same webmasters forget the most precious thing they have is NOT the so called "premium contents"... the most precious thing is to have a brand known by a lot of people. Imagine a good known brand selling out to cheap crap merchandize... what would happen? First, a lot of money, but soon all is gone since the brand is no longer good. So, we can make it trusted again? No, once spoiled, it’s done. What is happening here is not selling to cheap products, but to make it less known... some people will leave, but the worst is not that... the worst is that you will not get the new users (an example of short view business). This is especially bad in a market target like computer games, because people grow up fast and start playing less... without new users, you are history in a few years.
Paying contents web sites are suitable for Wall Street Papers, Medical magazines, info for Lawyers... active people with much money to spend. They are not for kids, with limited budget, no credit card, and who prefer to spend the money in another game than on a site with tips for games... There is a big difference between busy Lawyers who want to get info immediately, no time to lose searching it for free (so they pay), and school boys with lots of free time, no problem to spend 20 minutes or more on Google to find the good stuff for free.
The golden rule to pay sites is: Membership fee should NOT be low! Yes, that's right... With a low pay you can't hire the staff, not make the site really better that it was before. Now comes the second gold rule: The pay site should be different that before! The same stuff is not ok. And the third rule says: contents must be really premium quality. You can’t do that with a low membership pay out (that only pays your bills).
Gamebanshee does this all in the wrong way... Low membership, same stuff, no premium quality. Take a look at the walkthroughs, for example. They are quite good for a free site. But if I pay I would expect much more... How about some videos, so you can actually see the tips in action? How about some Flash movies? How about some colour, easy to print, nice PDF documents? What about a premium forum with guaranteed answers to any question? What about new ideas, hum? Things that other sites don’t have yet... I have some ideas… you can’t imagine anything?
So what is the solution?
1. Keep the site open for free. Ads allowed, but no annoying full screen pop-ups, exit consoles or **** like that.
2. Reduce costs in the long run. Buy your own server (even better, build your own server)... that saves a lot of money. If you can’t see that, you really have no eye to the business. No outsourcing! That is for rich companies! Verio is a good provider but is expensive... so you can’t afford it... give up. Find a good ISP, host the server at home, office.
3. Don’t pay for software licences! All stuff you are paying for can be created by you based on Open Source / GNU solutions. If you don’t know programming find people who can help, or learn programming yourself.
4. Dont have your own hired staff! Find voluntears... Many of your users can help you. Dont use them just for forum moderators, tips providers... waste some time knowing them better, and then comit them deeper in the site design/programing/content creation. Give them some power to manage some sections at their will... that is required to have interested people. Reward the best, expell the others.
5. Revamp your site marketing... a news section is not ok. You need special campaings, contests, prizes to users. Surprise users everytime they come back. Tell them about new features coming soon... but waste the surprise. The design is kinda old too... for a long time I see the same.
6. Consider building an online store, to sell games, books, toys, merchandise. People will buy much more easly stuff that they will really get on the mail, rather than web site contents. Again, no outsource state of art pro shopping cart. Keep costs as low. No affiliates mumbo-jumbo.
7. Expand your site to new games... all the time! The key to some business with cost problems (like this) is to expand forever. Games industry is perfect because there is always new games coming out. There is a risk of getting things out of control if you dont plan well and don’t know what you doing.
8. Bet on foreign markets. Localize your site. Most americans think the world is the US... well, guess what... it isn't! You don’t know Chinese language? Ok, don’t need to learn. Find people who can translate. The same with European Countries, and Brazil. Currently, there are already more internet users in Europe than US. But in a few years, China, India, Indonesia, etc. will make us even smaller in the global world.
9. Start positioning yourself to partner with a large network. You can live alone. Please don’t read this wrong... Not that 'partner' you got now! You do all the work and they got 50% just for processing the credit card! What a deal! Major portals, ISP providers, web hosting, online stores, are looking for traffic. But not that dumb traffic for the past years (that's what ruined Internet ads)... people wanted any kind of traffic because they were paid CPM for banners. Want to brand teen sports wear? Want to sell new 3D cards? These businesses will pay you if you provide them the right traffic. Maybe they don’t pay you the traditional way, i.e. per banner impression/click/lead... maybe you all create a large network and share the profits. But not a network of games sites!!! You know what that reminds me? AdultCheck porno crap network. AdultCheck is rich, the sites are broken. You don’t want to join your direct competitors! You want to partner with complementary business, or even completely different areas (why not movies? why not magazines?...).
If you go for the pay mistake, at least, do it right... follow the golden rules, or else watch your dream sinking.
Any way, good luck... I will not pay for your contents, of course. :-(
Best regards
[[]]