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Brier Dudley offers a critical look at technology and business issues affecting the Northwest.

February 1, 2010 at 2:37 PM

Web marketer mania: SEOmoz shuffle, BlueKai cash and a rant

A few online marketer moves that went down today:

— Seattle search engine optimization company SEOmoz is backing out of the consulting business so it can focus on developing software for online marketers. SEOmoz passed its $1 million yearly consulting business to British SEO firm Distilled, which is setting up a Seattle office.

The move takes a load off SEOmoz founder Rand Fishkin and clears up any awkwardness caused by SEOmoz’s selling software and services to SEO consultants, while doing consulting itself.

Fishkin said in his blog that his company is preparing to release several new tools and a new software platform this summer.

— BlueKai, a Seattle firm that provides online advertising data to marketers and publishers, raised $21 million in its third funding round from GGV Capital, plus previous investors Redpoint Ventures and Battery Ventures. Its previous two rounds raised a total of $13.7 million.

BlueKai described itself in the release as “the online industry’s largest intent-focused, auction-based data exchange.”

— Their moves were perhaps overshadowed by a NSFW blog rant by Silicon Valley startup investor and adviser Dave McClure.

He’s the latest pundit to point out that the companies drank too much Google Kool-Aid and spent too much time chasing eyeballs and clicks over the last decade and it’s time for them to build businesses based on selling subscriptions.

A few excerpts:

Everyone seems to have assumed that since Yahoo and Google were giants in internet advertising, therefore all internet startups should be using some form of CPM or CPC ad-monetization.

THIS IS A VERY LARGE LEMMING-LIKE ERROR IN LOGIC THAT MUST BE CORRECTED IMMEDIATELY.

We have largely WASTED an entire web decade of time, energy & venture capital on extremely inefficient revenue models.

On subscriptions:

ASSERTION #2: The default startup business model for 2010 & beyond will be subscriptions and transactions (e-commerce, digital goods).

Newsflash folks: The Internet does NOT want to be FREE… It wants to GET PAID on F**** Friday, just like everybody else on the damn planet.

More:

Free is not Forever, unless you never want to be in control of your own fate.

Gradually we are discovering that the default revenue model on the internet should probably be the simplest one — that is: basic transactions for physical or digital goods, and recurring transactions (aka subscriptions) for repeat usage.

Let me say that one more time so you don’t miss it.

Get Dem Bitches to *PAY* You, G.

(Can someone get McClure to speak at the next newspaper industry convention?)

Comments | More in | Topics: bluekai, digial advertising, Entrepreneurs

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