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Question time with Ammon Johns

Ammon Johns might be a new name to many, however Ammon has been in the online marketing game since 1995, with the enviable track record that not one of his 400+ clients has ever gone bust. Obviously, Ammon is doing something right!

In this interview, Ammon tells us about his approach, how to measure ROI and his vision of the ultimate search engine.

Thanks for taking the time to talk with us Ammon. Can you tell us a bit about yourself? What is your background?

I came online in 1995, jumped on the old web-design bandwagon in '96 and ... sucked at it. I had a few clients however, and they liked my designs, but came back to me asking how to get more visitors - how to let people know they were out there. I didn't know, but though I wasn't a great designer, I gave great customer service, and started trying to find out for them.

Well, I looked into all the things I could, from banner exchanges (those were huge in '96) to affiliate programs, from web awards (remember those?) to advertising. Also, of course, I started to learn about search engines and how to format and optimise pages for good positions in search engines.

Whatever I learnt, I brought to those brave clients, and they started to refer friends. Not for my design services, but just to help promote them. Those friends started to refer their friends too. By '97, I was no longer a web designer; I was an Internet Marketing Consultant. I shut down my web design business site, and worked from then on purely on client referrals.

It is weird of course, that my success in Internet Marketing comes from having no website of my own, yet there's a strange logic too. The fact that companies came to me from direct referrals gave me credibility, and the fact that that was the *only* way to come to me made me sort of an 'inside secret'. That really seemed to appeal. It also freed me from having to promote my own site and services, so I could spend all of my time on research and work for my clients.

I'd have stayed below the radar forever except for one thing. My work was made harder by the search engines constantly adjusting their algorithms. The search engines did this to keep closing the loopholes on low-quality SEO 'tricks' (such as 'invisible' text, keyword stuffing, etc). The only long-term solution I could see was to help stop the bad tactics by promoting better ones. That's when I started posting tips in a few forums.

I don't really know how high a profile I have these days. I suppose that the fact I'm doing this interview means that I'm now reasonably well known, at least within in the industry <grin>. I meet quite a few successful SEOs who quote me as an early inspiration, and I really like that.

I still suspect that half of your readers will have no clue who I am or why I'm here. Perhaps for any in that category my background is best summed up with the achievements that still make me a bit of an inside secret:

With over 400 clients since the Nineties, not a single one has ever gone bust, despite the fact that statistically around 95% of all ecommerce businesses go under without even making back their hosting costs.

I have no less than 5 past and present clients in the Neilsen NetRatings Top sites charts for their respective fields, with dooyoo.co.uk being the latest to attain that distinction.

With those kinds of achievements, I guess I have kept my profile remarkably low. I still gain my clients mainly from personal referrals and recommendations, and I like it that way.


What have been the biggest changes in the industry since you started?

A lot has changed almost beyond recognition, but I think the biggest single change has to be that of attitudes. Back in '96, SEO was regarded as tantamount to hacking. Respectable companies didn't do SEO - or at least never admitted it. Back then, all clients wanted a full NDA (non-disclosure agreement) that prevented you even saying you'd worked for them. SEO was a dirty word, and a concept that many companies would not consider.

Now, search engine marketing has been embraced by the search engines themselves with sponsored listings and paid for inclusion. Companies approach me specifically asking for SEO and are happy to provide testimonials and references openly. The shift in attitudes has been immense.

Another huge change that most people overlook is in metrics. Back in the mid nineties, the big metric was hits. Hits were always a worthless metric, but people used to regard me as eccentric for ignoring simple hits and clicks, talking about customers, sales, and profits instead. 'Old business' metrics. This was new business with new rules they said. That's changed.

Business is business, and while the Internet opens up new techniques and new ways of reaching people, once you do reach them, the old business principles apply - supply a demand, and do it as well or better than anyone else.

That shift in attitude to ecommerce is the final truly massive change. There was a time in the nineties when people looked at the Internet and said, "There's millions of people online that our business can reach". They forgot or missed the real truth. The Internet is the most competitive business environment that has ever existed. What is really online is every competitor you have in the whole wide world. They can all be equally close to every customer in the world too - one click.

Companies now realise that the world isn't easy to conquer and that being one of twenty thousand businesses in their market is only workable if they are the one that the customers find, and decide to buy from, hopefully repeatedly.

These are certainly changes for the better.

Unlike many in SEO, you've gone for a wider approach, encompassing more marketing oriented activities. Is this the way you see things going? Are clients demanding more than good ranking positions?

In my experience, the smarter businesses have *always* been careful to use SEO as part of a marketing strategy, not as an alternative to one. SEO is a means to get your message across, not a message in its own right. The companies who get that wrong, and make SEO its own goal, tend to go under.

I think the danger is that SEO is sometimes thought of as a marketing strategy in its own right, while I believe that SEO is a tool that is used *within* a marketing strategy. That's why I don't call myself an SEO as such. I use SEO techniques, and I'm pretty good at them, but it is a means to an end, not an end in itself.

When selecting keywords and search terms, what matters is to have the terms that your market segment will use, on the engine they will use, even if neither are the most popular generally. Keyword and search term selection are really marketing and advertising based on knowing how and where your target market do their shopping. Likewise, search positions are a means to do advertising, branding and PR. SEO is the tool, not the strategy.

I see that being a constant. The businesses that survived the dot-com shakeout have brought lessons with them regarding basic business sense, and attaining good ROI on any marketing campaign. The new businesses have examples of what works, and alternately, of what could make you the next Pets.com.

When you see SEO as a tool in marketing then it makes sense for the professional to embrace the broader role. You have to at least understand it. A hammer is a tool, but people want to employ a carpenter, not just a guy who knows how to hit a nail but needs someone else to aim and position the nail for him. It's important to know what you are building.

Of course, not all companies ask for more than just rankings, but those who don't consider how to use a high ranking for advertising, branding or PR with an end view to marketing, are not the companies I'll take on as clients. There'd be no ROI for them in real terms.

You've been outspoken recently on Overture in the UK. You felt that they weren't providing enough support for the advertisers. What opportunities do you think PPC engines are missing when it comes to dealing with search engine marketers?

I think they are missing the biggest and most important opportunity that any business can have: To satisfy customers so completely that there is no room in the market for rivals.

Pay-per-click search positions are a tremendous product and make superb business sense. They are the perfect form of advertising when done right. The listings are advertisements that can be displayed solely to those who've actively expressed an interest (used specific search phrases), and the advertiser is only charged when the customer responds to the advertising. It's the ultimate in unobtrusive, interest specific advertising that appears at the exact moment that a potential customer is seeking a solution.

The only problem is one of poor service from the providers. I recently highlighted that from Overture's own figures they were employing less than one editor for every 730 advertisers. If you prefer that another way, Overture was employing less than one editor for every $566,670 spent by advertisers each month! To add insult to the injury, they then tried to blame the lengthening queue of unreviewed submissions on search engine marketers.

This shows that there is *plenty* of room for better competitors with higher standards of customer service and who take genuine pride in having satisfied customers. An old style company who takes pride in doing what they do as well as is possible. Overture invented this whole business model (when known as goto.com) yet even with that immense head start, allowed competitors to flourish because, in simple terms, it can be done better.

Google AdWords have many advantages over the Overture system, and Overture is right to be worried. Overture still has the bigger list of partner sites however, so what it should do is improve the product and service to make its position unassailable. I don't see that happening, and unless it does, I believe Overture will continue to lose ground to rivals.

Both Overture and Espotting offer campaign management services now (another drain on the understaffed editors' time?) for a fee. The shame is that at the moment this offers little value apart from saving someone in the company having to do it. They are competing head to head with an ever-growing number of SEO firms that will manage PPC accounts. The difference being that a good SEO firm brings you far higher ROI than the staff editors do.

The fact is that the editors seem content to compare their ROI to those of other forms of advertising, not against the ROI that an optimisation firm will give on a Pay-per-Click account. Perhaps it is not seen as being in the interests of the PPC provider to actually encourage users to spend less for the same results. It should be, because advertisers will spend more in total when the ROI is higher. When you've gotten used to making back £1,500 for every £500 spent on PPC, if the return then doubles, so does the pressure to double the spending and thus quadruple the total sales.

One of my services is to train clients to dramatically improve their ROI from PPC campaigns, and many will gain more than a five-fold increase in ROI as a result. Were the PPC companies offering the same guaranteed quality of management, they'd have a far stronger service, and the customers would be far more likely to opt for managed accounts.

I've always admired your holistic approach to online marketing, and I'm sure other SEOs looking to diversify would be interested in what you do. Can you tell us a little about your approach and method?

Certainly. I guess the different approach comes from taking a different start position to a lot of other companies. My approach is all about ROI, and that my end goal isn't to just send a certain number of visitors per month, or to gain a given position in particular searches. My goal and metric is to aid my client to meet their true marketing objectives - increased sales and profits.

It is true that sending more visitors will generally increase sales, but it is often not the most cost-effective means to attain that result. Often, sending less total visitors, but ensuring that every single one of them is a genuine, prequalified sales prospect works better. The average ecommerce site converts less than 2 percent of its visitors into customers. If you spend money on visitors of the same quality, with less than a 2 percent conversion rate, then more than 98 percent of that spending was wasted.

So, I help advise on converting customers too. This can be very closely tied to SEO sometimes. What I mean there is that when a visitor arrives from a search engine, you already know what they are interested in, and so technically can present a sales pitch that is tailored to exactly what the customer was searching for.

No good sales-person would make exactly the same pitch to every potential customer. They seek clues as to exactly what the person is interested in, what their needs are, and then tailor the sales pitch to the individual. A site can make any sales pitch that a salesman can, and can target it as closely as you bother to make it do. Search referrals help you take a lot of guesswork out of that targeting.

Another thing is that too few companies bother to collect and mine data. An SEO is used to tracking results, and this experience is something of great value to any company. Looking at who your best customers are, in terms of how and where they found you, helps you target future advertising a lot better for higher returns on investment. Don't just track hits, track the sales back to the original referral so you can see, not only which campaigns send traffic, but which send you the highest converting traffic.

Stepping a little further away from things directly relating to standard SEO practices, we have the fact that the really good SEOs will understand searchers and surfing habits. They know that searchers are just like real-world shoppers: Most shop around before committing to a purchase.

Being the highest ranked is not enough. Most users will look at the other sites in search results too. Having someone warn you of this, and more importantly, help you see what makes searchers buy from one site over another is a great service.

Naturally, there are aspects that are not directly linked to SEO at all. I network a lot, as I suspect most good SEOs do, and I have a breadth of experience (over 400 successful ecommerce ventures) that is in itself a great asset.

I guess that the best way to summarise the difference in my approach is that I charge by the hour, and I don't even make a proposal for a job unless I'm absolutely confident that the client will see a five-fold return on the investment in my time within 6 months. In actual fact, I average a ten-fold ROI, but I like to make safe estimates <grin>.

To base my work on guaranteed ROI is simpler than it seems.

If I take on a client who already uses PPC, I'm certain that I can enable them to gain greater numbers of better-targeted (conversion-wise) referrals for less. If I charge for training, and for providing a reference document to back up what they learn, they'll easily make back that investment in my fees within 2 months on average.

With an ecommerce site I could lower their marketing costs (as I did in the PPC example), I can improve marketing results without a corresponding rise in costs, I can generate more overall sales per month, I can seek to help them decrease overheads and thus increase profits from the same volume of sales, I can help them develop new revenue streams ...

The possible ways in which I can generate bottom-line ROI are almost endless. It's therefore generally a cinch to charge £2,000 for 20 hours of my time, and be assured that they'll get £10,000 value back as a direct result of what I can do for them, or teach them, in 20 hours.

Besides, guaranteed ROI is a very powerful selling point, meaning that I don't need to spend so much time and effort on marketing myself. As I mentioned, most of my work comes from direct referrals from satisfied customers, and that's the way I like it.

The SEO world exists in a strange place where the relationship between the search engine and the SEO is not clearly defined. How do you think the search engines feel about those who practice SEO and do you ever see a point in time where both sides will see eye to eye?

It seems like everyone has an analogy to explain the relationship between the search engines and the SEO industry. I have one too. I know you like documentaries, Peter, so this one you may like.

The search engine is like a documentary filmmaker trying to film one of those fly-on-the-wall documentaries. The SEO is someone who makes everyone in the company where filming is going on wear a suit for the first time in their lives, and makes everyone play to the camera so that his firm is portrayed in a better light. It frustrates the entire point of the documentary. In the example, just as in the reality of SEO, anyone who goes too far risks being dropped from the documentary altogether.

I see the situation we have continuing pretty much. Search engine marketers are naturally often power users of search, and thus can be of great feedback value to the search engines. On the other hand, SEOs can harm the value of the SERPs. When Altavista was the primary target for every optimiser, its relevancy was almost useless. Likewise, I think Inktomi provides very poor results in the main. The easier an engine is to 'fix' the results in, the worse it becomes, and the sooner it loses market share to competitors with less spam in.

Many SEOs are poison to the SERPs, polluting the very environment they depend on. That isn't too likely to change until there are recognised standards for SEO, with some sort of regulatory body to enforce those standards.

What amuses me sometimes is the cry by many SEOs for Google to be declared a utility and regulated as a resource. If that ever happens, I can see a day when SEO becomes a crime - tampering with a public utility. Now there's a scary thought <grin>.

If you could build the ultimate search engine, what would it look like? How would it operate?

That's a really interesting question. For me the ultimate search engine would stop trying to be a one-size fits all solution and would actually relate to the user. It would learn about each user, learn how they put searches together, and learn to understand more about the individual. It would return result based on the context of the searcher, not just the words they use.

This would require that the users let the engine collect some data about them of course, but it gives a damn good reason to do so. In return, the engine becomes empowered to place their queries into context of who the searcher is, where they are, and what their known interests are. The fact that this would give the search engines some truly excellent scientific data (of considerable value) is one hell of a side-benefit too, of course.

The ultimate search engine would acknowledge that SEO isn't going to go away and would take the realistic step that is always taken in such circumstances - they'd legitimise it. The search engine would give a seal of legitimacy to all SEO companies that played by the rules. Well, perhaps not all. It would make more sense to use this opportunity to create fewer-but-more-powerful companies, of course.

The engine would charge for the audit for the seal of approval, naturally. Only those companies that had been approved would be allowed to purchase the demographics reports from that side-benefit I mentioned earlier too. There's a lot more to this, of course, but I don't want to go giving away ideas <grin>.

Of course, there's a lot of room for improvement even without personalisation. Improvements that would be needed anyway, for those who chose to be anonymous, or to block cookies. Again, contextual search is a major feature, but here we do look at the context of the words. We are getting into that favourite old discussion topic of Themes.

Allow me to paraphrase an article of mine to explain Themes as they apply to contextual analysis:

To enable theme-based analysis is a matter of building a lexicon or thesaurus into the indexing procedures. This would try to categorise each word on a page into topical themes or categories. By just recording the top 20 to 50 categories that words on the page may apply to, the search engine has pretty much mapped out the topics and subjects that the page most likely applies to. It has found the common 'themes' to the words on the page. It would record those 'themes' in the database.

Imagine that two very different pages, hosted on different sites, both have the words "Jamaican" and "cooking" in the text of the body.

The first page is a tale about the author's love of cricket and has an anecdote about a match played by the Jamaican cricket team, which he watched, on television while cooking his lunch one afternoon.

The second page discusses the favourite Jamaican recipes that the author enjoys cooking. It has depth of content about the ingredients and methods involved in cookery in that style.

A human can readily see, even from these short descriptions which page is likely to be the best match. The trouble is that without themes, the search engines are pretty much just counting the times that the words you enter are matched on various pages in the index.

However, with themes, the algorithm is analysing each word on the page for its 'category' or theme. On the first page, it finds more sport related words than any other, and few food related words other than the few in that particular anecdote. The main theme of this page is determined to be "Sport".

On the second page, the vertical theme analysis algorithm easily relates the mention of "ingredients", "recipes" and many other words to the over-all category of "Food".

By applying the same 'theme analysis' to the search queries, the algorithm can already be looking for certain 'themes' when the query is made. A search for 'Jamaican cooking' provides possible themes of Travel / Geography / Ethnicity for the word Jamaican, and themes of Food and Drink for the word cooking.

The fact that neither term directly relates to 'sport' will reduce the ranking of our first example page against pages with the same matched words but more relevant themes. Since the second page matches not only the words, but also the Food theme, it will rank highly and present a more relevant result to the search.

Naturally, that's a pretty simplistic illustration of themes, but I think it shows how it can improve the quality of results. I have a lot more ideas, some far easier to implement, but I think I will save those for commercial use one day. I'd get a huge kick out of bringing my services to a search engine client one day.

While online marketing trends come and go, search engine optimisation appears to have been a constant. Where do you see SEO heading? Where do you see yourself two years from now?

Well, I believe that SEO is already moving into becoming an accepted and powerful part of any online marketing endeavour. Already, many companies have moved away from banner and popup advertising and are spending a significant proportion of resources on PPC search listings.

I think that the standards expected of an SEO provider will rise, partly through competition, and largely through the fact that as SEO becomes mainstream, clients will insist on proper contracts, and will enforce them. Also, general knowledge about SEO among businesses will increase, helping to weed out the more unrealistic providers who don't deliver real ROI.

As this happens, SEO companies will become larger, and smaller companies will either be bought out or closed out of the market. The SEO industry will see consolidation, with fewer players taking bigger and more plentiful contracts with reputations becoming all-important.

There will be an overall increase in SEO work, but I see the industry growing up and maturing with fewer independent operators. The increase in work will come to the larger SEO companies or agencies, who will hire lots of staff to cope, and also, many companies will be more likely to hire their own in-house SEO too.

As for me, well, I've always enjoyed my independent status, but perhaps I'll finally have to open an agency to continue doing the work I love. I really do enjoy my work, and that helps me to always find fresh ideas. There are a few ideas of my own I may sometime find time for, maybe even that ultimate search engine... <grin>.

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Thanks a lot, Ammon. There's a lot of great advice in there for any search engine marketer.

Next week, I'll be talking to.....oh, I'll leave it as a surprise. It could be blind lesbian-circus-performers-with-a-grudge, or even Chris Ridings!

 

 

 

 


 

 

 

 

   

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