Friday, December 11, 2009

Cost of Living Value Theory

The experiment continues, about 45% complete so ar. So Im having to go a little off track, for content for this specific site. Today, I would like to discuss the concept, one that I developed. Im an amatuer economist, so this has no basis in anything I've read so far, but I wouldn't be surprised if this theory is out there already.

I think, all value, and by extension, all price, is a result of the value or price that is placed on food. I believe that there is a very strong correlation between the price of food and the price of anything on the market. At the very minimum, it determines the cost of production, and for the vast majority of Americans, it also helps to determine the amount that is saved and what is considered disposable income. So, in truth, the cost of living determines both the minimum price to break even, and 99% of the time, the maximum price for an object. Even for large purchases, which would be expected to be financed, the maximum price is also dependent upon what a person can afford to pay.

Okay, so where does this stem from? Food is the key ingredient in all products in society, as it is the fuel for labor, which is the universal ingredient in all economic activity. Whether you work from home, at the office, or at a construction site, you must eat. And in the very begginning of society, our ability to support a complex economy is dependent on the fact that on a day-by-day basis a person can produce more food than they need to survive, otherwise, our economy wouldn't even be existant.

Its a pretty simple concept, and in my opinion, hard to defeat. But as is my nature, I even got in a fight over it. And when trying to point out, and explain my view to the person I brought inflation into the mix.

And he made the classic point that I was confusing inflation with purchasing power, and at the same time I would be confusing price with value. However, upon further examination, the concepts are tied to each other. He made the point that all inflation really does, is reduce purchasing power.

While this is certainly true at the beginning of the cycle, assumably labor prices will inflate as well. Not to mention, value can be used as a means of exchange. So whether I get a loan, get a raise, or become more productive, Im going to try to balance out the exchange, even if there is technically not enough money.

Opinions?

Thursday, December 3, 2009

Marketing Experiment Update December

Hey people! Im still doing my best to conduct this experiment, but saying that I will build 100 effective backlinks is much easier said than done! But, Im about 25% complete so far, a couple of weeks, and I should be done.

For those of you not familiar with my experiment, my goal is to measure and provide statistics for some internet marketing strategies. Specifically, my first experiment is to determine how much traffic an individual backlink provides to a website. This will help internet companies and existing companies qualify and validate the hiring of specific internet marketers, which will be a great secondary source of income for many Americans, in a time which we need them the most.

What other marketing strategies do I investigate? Believe it or not, I'm actually reversing a decision of mine in October 2009. I had come to the conclusion that Traffic Swarm, as a system for generating hits, was almost useless. However, after dealing with the program for two months, I've reconsidered and changed my stance.

Traffic Swarm, despite the incentive to click, actually does deliver some moderately good traffic. While yes, the clicker gets compensation for clicking, he actually has an unlimited number of options to click. So ther is some element of targetted traffic to this, as the surfer can still choose to bypass a site he doesnt want to read.

The vast majority of those websites that advertise through Traffic Swarm are business opportunities, so believe it or not, I've found my blogs and my company website does very well. When a surfer has clicked through 15 sites, each of them offering a get rich quick scheme, coming upon a blog talking about Ghost Stories, it seems they are more likely to stop and read, comment, and participate.

If your interested, click below. Its a basic traffic exchange, you click to earn hits, however the traffic exchange is cleaner than most. Its very automated, and easy to use. I find it preferable to alot.


Click Here for Traffic Swarm

Tuesday, November 17, 2009

Experiment One, Phase Three

So finally, my experiment has come to an end. Ive concluded that every new post adds about 2.5 unique visitors, while each link bringing in about .045 visitors at this point per week. And it seems that an individual backlink increases its power of visitor aquisition by .0001 for every other backlink in the network.

Of course, I can recommend that grea content does a part, because more than a few posts brought in more than other posts. So still, content is king!

So how many visitors will 100 backlinks net you? About five visitors a day.

How many will 1000 net you? Given that the trend of increasing synergy through backlinks continues, an unreal number of 140 per day. This is to assume progression is geometric.

So, I have a final test. I will record as I post 20 backlinks every day for the next five days, and reset my counter for the site. Then I will get another 5 days to see how many hits these create, finding a nice average.

Then my goal is to build 1000 textual backlinks over the next 30 days, for the same site. I will post 30 backlinks per day for 30 days, then record the results. This will give me a combined total of 1000 backlinks.

Unfortunately, I will really have to exhaust myself to develope these links!

Thursday, November 12, 2009

Science of Money: The Workplace Melting Pot

I was watching a segment on the Colbert Report, as I've been a fan since my senior year in High School, with an author, Christopher Cauldwell, who was discussng Islam in Europe. He makes the claim that in Europe, Muslims aren't assimilating into the culture as well, because they are capable to maintain an insular community due to a welfare system which allows them to remain in said communities.

Supposedly, due to the less-generous American Welfare system, we force workers to assimilate into the American Workplace, or get out of the nation. And while there is certainly truth to this statement, I don't believe it has as much power as Mr. Cauldwell would leave us to believe.

A lot of communities in America, and the world, are insular. The most common form of this is geographic isolation. Many of the services and money spent on services, stay in the same community. If you live in a small town in Maine and the nearest population center is 50 miles a way, you won't drive out there to get your hair cut, as you would spend an extra $10 (round trip) or so in gas money, and the cost of your haircut would be $25 as opposed to $15. So it becomes highly unlikely that you would go to this other barbershop, and thus your money would stay in the community. This goes for the vast majority of other services, and retail locations.

However, even in larger communities social differences also increase the isolation of a community. A Jesuit practitioner can't go to the same butcher as a Christian, and even the existance of a language barrier, like Yiddish, further isolates that community. And the natural tendency of a person to promote and hire those who share their values (and as such their backgrounds), not to mention community needs of a business, make it more likely that they will hire those from within their own community. A Jerk Chicken restaraunt will need to hire someone who knows how to cook Jerk Chicken. The manager of the restaraunt may attribute his success in the industry to growing up in Jamaica. And patrons, may feel more comfortable with the cliches of a Jerk Chicken cook as opposed to say, a Latino cook. So it makes it much more likely that the restaruant will hire someone from Jamaica who knows how to cook Jerk Chicken.

So unlike what Mr Cauldwell says, a person's ability to assimilate with a culture begins in the public sector, not in the private sector. This begins with education and access to education, which not only increases a person's technical and academic ability, but forces them to open their minds to new ideas and new people. In addition community and social events where the idea is to purposefully encourage diversification will increase the ability of immigrants to assimilate.

Just a little bit of food for thought. What are your opinions on this topic? Does the public or private sector have more influence on cultural assimilation.

Wednesday, November 11, 2009

Science of Money: Experiment One, Phase Two

Okay, its still not going as I expected, as the nature of backlinks and how much traffic they generate has changed. I assume though, each week, as the experient continues, the figures will change. But here is what I have so far.

Currently, the average post produces 2.5 new visitors to the website upon its posting. This is a 38% change from what was reported initially, and I assume the margin of error will change but become smaller until I find a good number.

The posting of 10 backlinks produced 2 hits immedietly, making the new adjusted average .3 per backlink upon initial posting. This is a 50% change as compared to the initial number.

However, the 20 links total produces 3 new hits this week. Thats .15 hit per link in a week, which is a 50% increase. However, I do think this figure is about accurate, as I expected some geometric increase as more links are cast out into the wind. This is due because the more links that are out there, in targetted sources, it increases the blog's notoriety. If you see this link here and at another associated blog, you will definately know the blog might be something your interested in, and might be more likely to click(I might refer to this as synergistic growth). Not to mention that the more links naturally also increases the Page Rank of a page.

While it might seem unusual to claim that 20 links as opposed to 10 links might show more synergistic growth, but the blog I have is in a field which isn't heavily populated. So it maintains some status.

Tuesday, November 10, 2009

Surprising Upset

So upon posting a new set of links, and a new content post, my blog has recieved a remarkable three new uniques. This definately makes me wonder if the controls of the experiment weren't strict enough to run the experiment correctly. Ive decided to extend phase one for five more days, and I will repost the information for you all to see after that time.

Monday, November 9, 2009

Science of Money: Experiment One, Week Two

Okay, so its been another five days, and Im going to update ya'll on the current progress of the newest experiment. I posted new content, then posted ten links for this blog, and this is what I got.

Firstly, as you know, new blog content will generate a few hits for a blog, approximately five per post. So if you really do want quite a few hits per day, multiple blog posts per day will do that for you. However, it is my belief, after last week's experiment, that none of this is residual traffic. Unless that person becomes enamored with your content and subscribes (or just checks back frequently), it wont produce any residual unique visitors. This makes sense, as the updated blog content itself has been cycled out by the new variety of other updated blog content, from either your blog, or another person's blog.

But taking this into account, my ten backlinks produced five new visitors in a five day span. However, even this has be be segregated. The first four of these were produced within 24 hours of the posting of a backlink. All the backlinks posted were comment backlinks or forum backlinks. The added value of an article segregates backlinks produced by such. So thus, for every single comment leveraged out onto the internet, my studies show that you will get .4 visitors from the backlink immedietly, and .1 visitors every five days.

Given that the initial posting only happens once, this .4 visitors doesn't do much for you, unless you posted comments en-masse. However, a single backlink will produce a unique visitor every 2 1/2 months. I tend to think that this is probably an inverse parabola, where the amount of visitor return reduces over time, getting closer and closer to zero, but never going away, simply because your comment backlinks will get overrun by others who post. And of course, if you aim your backlinks for high-traffic blogs, they might perform significantly better. I aimed for blogs and pages between PR 2 and 3, with content similiar or close to mine. The average comment backlink takes 30 seconds to write, but a grand total of 10 minutes to develope.

Now, how about building to a 1000 visitors per day? Well 100 backlinks will produce one visitor, 1000 will produce 10 per day, 10,000 will produce 100 per day, and 100,000 backlinks will give you your 1000 visitors per day. Given that you have good content, you should see a CTR of 4 to 5%. I estimate $20 in income from click throughs for 1000 hits. This would be an income of $600 per month. The cost of producing content, whether or not you made it yourself (you essentially pay that cost by doing it yourself) would be .02 per word, with a post-length of about 700 words. About 14 USD per day. Thus, profit would be $180 a month. The value of a backlink to you, at that point .0018 of 1 USD. Almost a fifth of a cent. The total value of your blog as a whole would be between 1800 to 3600 USD; plus or minus details such as charges for content, increased monetization, or intellectual property. The asset as a whole might be worth 4000 USD to an eager buyer.

That pretty much sums it up for you! Adios

Friday, November 6, 2009

Free Traffic Sources

I've got two topics I wanted to cover, however they are so different, that I've decided it would be best to go ahead and do two blogs, as to keep the content seperate. As this is he more frivilous one, I shall do it first, so that it will be further down the list. This article is mostly aimed at newer webmasters and those who are looking for bulk, untargetted traffic.

I joined, for a few weeks, two programs that are marketed to produce you traffic. However in both cases, while they might produce traffic, it is mostly untargetted, and fairly useless for the purpose of monetization. You might get the random few clicks from it, and maybe an occasional sell, but it isnt that worthwhile.

The first is Free Viral. A generic and misleading name for the project, as I have discovered it is neither free nor viral. While it might not cost you any money, you have to dedicate your precious attention to it, and despite it's status as free from cost, its certainly not viral. Despite some marketing, it has not exploded virally. However, after setting it up, it is assumably passive. If you can manage to get a few web-masters on board to promote it, they might do the same without much advertising on your side. However the hard part is getting them on-board, and they will have a hard time at it as well. So overall, I rank this project a failure.

The second is Traffic Swarm, which carries much of the same weight as Free Viral. If you can manage to build a downline, it is worthwhile, but for the most part, you have to contribute much of your time to it. In Traffic Swarm, you 'work' for credits, and each credit is used to display the your desired link for promotion purposes. How do you earn these credits? Through referrels an from 'browsing' on the site. Every browse will earn you a number of credits, so it seems that the whole system revolves around this cycle. You 'grind' clicking sites, most of which are internet marketing related, to earn credits so that your site can be 'grinded' as well.

However, I find that the site isn't neccessarily without targetted traffic. I find that most of the websites are those scam-tastic "Internet Wealth System" type of sites. However, a few sites, normal sites, exist on, and they are sometimes worthwhile reads. I found myself glancing at several pages of a site about electronic ciggerrettes before proceeding to google to research them more. In this case, the site served it's purpose, it raised awareness for a product that I didn't know existed, and made it plausible that this might result in a sale in the future. While this wasn't a direct sale, there is a bit of branding that increases a company or industry's notoriety, and for that single hit, was worth their time.

So my opinion? It differs on who you are. If you are just starting your webmaster career or are in the first month of developing a site, I'd recommend Traffic Swarm, if only to build up your number of unique visitors. Even if only a small percentage of this traffic converts to clicks, it will be money that you will appreciate in the early days of your blog/business while you build your arsenal of backlinks and articles for marketing. So Traffic Swarm can be worthwhile.

Free Viral? It isn't worthwhile. The front page is very long, and its doubtful a web-master or surfer will stay on the page that long to read through the BS. You might have some chance with it if your promote it via an article. And even if you do manage to get a few people under you, they will face the same challenge to find people beneath them. Try it if you want.

The end all be all? Continue backlinking, writing articles, and making good content, these will be 100x more important towards your website in producing good traffic then a 1000 hits from either of these sites. However, they are both free, and don't require too much time to get up and running, and free traffic never hurts.

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Wednesday, November 4, 2009

Experiment Update

Ah. So the first phase of the experiment is over. The typical blog, that posts once a week, will maintain traffic of 1.2 unique visitors per day. However, you must also remember, that the vast majority of these visitors came immedietely after I had posted a story.

So for further explanation, for every post on a blog, it seems with little or no notoriety, that it will produce 5 unique visitors. However, none of these visitors converted to subscribers, though they might still be thought of as readers, none of them comment. Im supposing it takes one of three things to generate comments on a blog, either a massive amount of traffic, a very specific blog, or a contest or the like which will result in audience participation.

However, once again this is no the point of this new study. So phase two will begin as I post another story on the experiment blog. I will support it with 10 backlinks in highly targetted blogs of a similiar nature. Knowing what I do now, I will subtract 5 visitors from the total produced for today (the 5th), to account for the novelty of the new post.

Anyhow, so in summation, a new post results in 5 unique visitors. However, I assume as a blog's notoriety increases, the effects of backlinks, new blog posts, and advertising in general will increase. So thanks for tuning in!

Tuesday, November 3, 2009

Network Marketing & Domestic Productivity

Okay, firstly, Im not the biggest fan of Multi-Level Marketing, mostly because they usually over-exaggerate claims and add nothing productive for society. And for the vast majority, 99% or more, I still believe this is true. I still get so many of my buddies trying to buy into this business opportunity, and claims of making thousands per month passively are always somehow involved.

I've only ever been involved in one MLM, and I quickly came to realize how useless it was as a program, and quit it, as soon as I could. However, with that said, please know I go into this discussion as a bit of a skeptic, but I believe I have found a network opportunity that is legitimately a money-maker, even though it may only be some small amount per month. I even believe every person on earth can benefit from this program, which is usually against MLM SOP. Traditionally speaking somewhere along the downline, market saturation happens, and you cannot sell the product anymore, or recruit anyone. However, this program is definately apart of the new viral/virtual economy. But before I get into this I want to tackle something that is on my mind, and that is the apparent stability of wages as compared to the cost of living.

Firstly, let me start off by saying that our wages should be higher. Our minimum wage should be about $10 per hour, and there should be a stratification. Those jobs deemed risky should recieve an extra benefit, as should those that are consuming. However, the more I elaborate on this, the more I would seem like a socialist. Suffice it to say though, things would run much differently if I ran the world.

Nextly, however, we should realize that the wage shouldn't have stayed in the same comparative place as years before. As we advance in social and technological developement, we gain extra time in a week. Let's take for instance the invention of the washing machine and dish-washer machine. Both of these are devices that simplify tasks which would have reqired us to expend large amounts of time in a domestic capacity, at least 10 hours per week.

Now, we can set the machine to work, and we can go about our business otherwise. This simple technological advance mixed with many ohers freed up another member of the household for labor in the workplace. Essentially a house-hold went from a one-income household to a two-member house hold. You essentially double the purchasing power of the family unit, theoretically, while the new expenses associated with running those machines are much less than actually employing a partner of the family in a domestic capacity.

So you can see how further technological progress frees us up for more time to make money, or enjoy life. As the world becomes a smaller place, we become more aware of freelance writing projects, we are more prone to start businesses, and to experiment with things we are interested in just for the sake of experimentation. Even now, they are working on the butl-r-bot.

http://www.tuvie.com/butl-r-bot-futuristic-robotic-kitchen-assistant/

While we may never have automated automobiles beyond a freight load/unloading and military capacity, you can definatey see that as technology advances continue, we will live happier more productive lives. In 100 years, a person may get out of bed, and head to their job, while a robotic servant makes the bed, cleans the shower, and prepares food for that night. These menial domestic tasks serve to reduce stress, allow us to concentrate on our workload, and increase health and cleanliness. And while you may still only work 8 hours a day, those 4 hours dedicated to domestic tasks may be now converted to two hours of free-lance work, and two hours of extra recreation and rest.

However, the assets required to maintain this standard of living will be such that the cost of living will always seem to outpace wages. However, we willmake up for this with the extra time that this standard of living provides us. And as media changes, so shall we become more productive with everything from family vacations (planned to maximize entertainment and minimize resource use) to even advertising whereby we share in the unprecedented wealth of our new society by exploiting its newest social norms. We are compensated for huge profits by companies and governments by huge public relations, advertising campaigns, and government programs.

One example of this, is the program I have stumpled across. Simply put, you get a search toolbar, which functions s a search engine. Whenever you arrive at a site, it automatically references the keywords of the site, and gives you appropriate adverts that apply to you dealing with the site. However, you must elect to see these ads, by pushing your advertisement button.

So where is the network opportunity? Where is the money? Well it is on-demand advertising, and is incredibly targetted. Businesses can expect high conversion rates from this traffic. But whats more, for every ad you click, you are paid a small amount, about 3 cents per click. While this may seem very small, a recent study online said that the average browser will click an ad every ten minutes. Specific searches are much higher.

So think about it, if you spend two hours a day surfing, you stand to make by default, .36 per day, which is about $10.00 per month. While this is still a small amount, that is $10 you could make for potential clicks you were going to make anyhow. So not only does your research on starting a pet business yield results about the information of that business, but it also yields a small amount of revenue.

I imagine the site holds your earnings until a certain level, deducts taxes, and sends it to you. However, given the amount of control you have on it, you could waste your time clicking a bunch of ads. However I do believe they impose a daily limit.

Where does it become viral marketing? You can recommend your friends, and recieve a commission, up to 9 levels deep, 2c per level. So if you click you get 3c, and the 8 people above you get 2c each, for a total of 19c. Given the going market for clicks, 30c per click isn't farfetched for the average campaign. That leaves them with a profit margin of 11c to work with.

And as I said, there is no potential lack of a "downline" as new consumers enter the market every day, the program is free, and even if you can't get anyone to join under you. The product you are "selling" are clicks to yourself, for free.

Needless to say, I think this is a legitimate opportunity, and a very good source of traffic for businesses. Check it out, internet entreprenuers! And add it to your arsenal of monetization tactics!

Click Here to Join the Program!

Also, if you could, please join under me, so tha I might build a downline. And I really appreciate your reading! Comment!

Monday, November 2, 2009

Experiment Update Nov 2nd

Okay, the first thing yo have to realize, if you haven't caught up via my previous post, is that Im crrently measuring the capability of a website with no marketing support. In truth, this blog has very little marketing support, and will be dependent upon viral marketing and content for some time. However despite this, I have a few backlinks and articles to support this blog.

However, the experiment itself, has no marketing support. And no, I can't tell you what blog that is, as it will delude its experimental validity, and its already hard enough to maintain controls on the internet.

Well, just an update. I posted a new update on the blog, of very creative, good content. The content is based on something that you can find here in my home city. It did quite well drawing in a few new uniques, I imagine, from it being listed on the host's website roll of newly updated blogs. Thats how I imagine these new uniques came about. The site is submitted to the major search engines, but it's back links are so low, that it is doubtful that it even shows within the first 1000 listings.

What I was impressed with, whas that my click-through ratio is incredibly high. Upwards of 20%. However, I attribute this to a seasonal bit, as the blog does deal with something that is viable for Halloween. I imagine other blogs with similiar content probably have their CTR go up during the Halloween season.

Given its lack of notoriety; only 5 unique visitors for a post, so far. I expect maybe three or four more visitors.

So, please stay tuned. I've got more to update about this experiment, and future experiments in the future.

Saturday, October 31, 2009

Studying Currency

This is my new Science Blog. When I was writing up my first blog, I remember having very specific quesions, and finding very few answers. Thus, I decided to take it upon myself to research and answer these questions.

Within this blog, you will find updates on current 'experiments' that I am running. Each of these experiments will be conducted with little or no connection to this blog, and may even be conducted anonymously via thumblogger. This is in order so that I might gain unbiased data on the experiment. As the experiment developes, I will keep you, my audience, abridged of my findings, so that you can incorporate these into your own website design and marketing principles.

With that said, I want you to know, that I will try to post, roughly, once every week for this blog. Butonce again, that is a very loose commitment, and will be dependent upon the developements of my experiments. When I have no new data to present to you, I will instead, delight you with a review, from an artistic standpoint, of some world currency. Being a member of the military, I have currency from all around the world, and hope to expand my collection soon.

Also, please note, that I will do my best to incorporate controls into my experiments. But these are only recreational experiments, and are meant to entertain you. If you use them as statistical fact or use them to modify your own statistics, is entirely up to you.

For my first experiment, I shall be conducting a one-month study as to the benefit of a well-placed backlink. The site being experimented with will be run for one week with no web-promotion, and an average gain per day recorded. For the second week, it will run with a single back-link, then giving an average of traffic increase per day. In the third and fourth week, a respective third and fourth backlink will be added, to observe for noticable geometric trends. Im hoping that this experiment will furter help us understand the nature of internet marketing. Afterwords, I will conduct marketing as usual for the website.

Anyhow, thanks for reading, and welcome to the Science of Money