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Niche website company: Road to $1 billion or slap by Panda?

Discussion in 'Making Money' started by Faded, Apr 10, 2012.

  1. Faded

    Faded Jr. VIP Jr. VIP Premium Member

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    http://smallbusiness.yahoo.com/advisor/wayfairs-road-1-billion-040000543.html

    Interesting read. Although I would skim around, its really long. Basically, a company managing 250 some niche sites and using dropping shipping to generate $500mil in revenue. What is interesting is that they took a huge leap and risk away from their business model recently by moving away from SEO.

    So, do you think it really was because the company is going forward, onto the "road to $1 billion" or because google has been more aggressively changing their algo and they did not see their business model being sustainable long term since these website are unlikely to provide any real content?
     
  2. cnick79

    cnick79 Jr. VIP Jr. VIP

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    I was just reading this article before coming to BHW. I think they want to build a brand for themselves. As it looks now, they appears to be a company that looks like they own a bunch of smaller companies. In the article it mentions their customers have no idea they sell other goods. If they have a single domain they can start cross selling their products across the smaller sites.
     
  3. aakon7

    aakon7 Regular Member

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    Wow, that is a really dumb idea. You have to diversify your sources of sales, however you don't walk away from SEO cause you are scared, you just ensure you are 100% risk free in all your SEO methods when your revenues are that large. I have taken that route before and it is not fun, however I was able to secure 10% - 35% monthly growth in revenues so I thought we were extremely successful at it. I have run across these ppl in a few industries I worked in, they have EMD's, loading with lots of custom content, well designed micro sites, and have a very decent linking scheme going on. They focus almost 100% on PPC. One of the sites I saw they developed, actually had Google blocked lol not sure if that was on purpose though.
     
  4. ajithrocksca

    ajithrocksca Jr. VIP Jr. VIP Premium Member

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    People are getting it wrongly. Walking away from SEO is not being scared.. they are not going to block the traffic coming from google. but spending too much time and resources on SEO anymore is meaningless. It is better to divert those funds and resources to other forms of traffic building. It is the right ways ahead. Because you do the same kind of seo for two websites, one will be ranked and the other won't be.. and for some keywords some xrumer links are ranking for me ahead of my site. so it is better to focus on other streams of traffic especially social networks as that is the way ahead and the new word of the mouth
     
  5. IamNRE

    IamNRE Jr. VIP Jr. VIP Premium Member

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    Seems like all their domains "niche" domains are 301'ed to their main site after ranking.

    So get EMD... then 301 to main money site.