More On Barriers To Entry – Natural Vs. Google-Made

Writing by Nick Stamoulis Tweet

Yesterday’s post on Google might seem a little bit awkward so I wanted to clarify one thing. When I said that Google favors big businesses over small, that doesn’t mean they have a rule that penalizes small businesses or gives larger businesses a boost. All it really means is that the age factor within Google’s algorithms favor those websites that have been around longer. Since those businesses have been online longer than the small business making its migration today, or the new startup, then by extension the search engines have given larger, existing businesses a little bit of an edge. However, it’s not an edge that can’t be overcome.

When I wrote that post I didn’t know of anyone else talking about barriers to entry. I have since done a search and found an interesting list over at Stuntdubl.com. Here’s his list of 11 barriers to entry for small businesses wanting to do business online:

1. Highly intelligent PPC automation tools and arbitrageurs
2. Age factors impacting trust score
3. Ad agencies catching on to SEO
4. User data validation for trust score
5. Saavy affiliates with established sites that don’t like competition
6. SE’s shifting of the content revenue model
7. Diminishing conversion rates for link requests
8. Just like the “real world” $$$$$$ will again = trust
9. Ad agencies playing ball with SEO’s
10. The day Aaron retires from building free tools
11. Leveling of information between buyers and sellers

You’ll notice that the age factor is on the list. But there are other things here too that I tend to agree with. The first one on the list, for instance, is a barrier to entry that may be more difficult for some small businesses to overcome. Let’s face it, small means small. You don’t have a huge budget, right? Any time money is a concern, larger businesses will have an edge over smaller businesses. That just means small businesses have to get a little more creative in their marketing efforts. What are you doing to be creative?

Are Ad Agencies Natural Competitors?

I’m not sure about #3 and why that would be a barrier to entry. Small businesses don’t necessarily need ad agencies, but it could mean that as ad agencies learn more about SEO then they can help their large business customers succeed online. I don’t really see that as a barrier to entry because small businesses can act more quickly than ad agencies or large businesses and in Internet marketing, knowledge is power. Ad agencies cannot be SEO experts because their focus is usually on total packages and integrating complete advertising models. Internet marketing will just be one piece of the pie for them. That means many small business owners can perform better SEO than the ad agencies anyway.

You Are Also Competing Against Your Competitors’ Affiliates

Like Matt Small Business SEM, I’m not sure what is meant by “use data validation for trust score” unless this is talking about some kind of php coding or something. But affiliate marketers are, in a sense, a barrier to entry because they make the playing field more competitive. You are not just competing against a business in the same field as you, you are also competing against all of their affiliates since those affiliates are usually building their own web pages and running their own PPC campaigns. Again, the age factor contributes to this because an affiliate with an older website is going to have the edge. And all it really takes is 10 very effective affiliate websites to keep you from making the front page on Google for your search terms. This, however, is where the long tail comes in. A barrier to entry? Yes, but one that can be overcome. Find a niche. Better yet, beat them at their own game and start your own affiliate program. Competitive trick to try: Join your competitors’ affiliate program to learn all of the ways they keep affiliates motivated. Then start an affiliate program that outdoes them and rewards top affiliates better than their program does.

The Shifting Of The Content Revenue Model

This one is an obvious one. I’m ashamed I didn’t think of it sooner. A good example would be Google Universal. If you have a lot of money to spend then you can respond to this change much more quickly than a small business can. The essence of Google Universal is that Google’s verticals become more important. To get a top ranking you’ll need to target each of the verticals more as that will increase your chances of ranking in the search engines. But that’s not really all that hard. Add more photos and graphics to your web pages. Do some video marketing and podcasting. Really market yourself to the verticals. Barrier to entry? Somewhat, but you can overcome it. Work harder and smarter.

Diminishing Conversion Rates For Link Requests

As far as I’m concerned, the rules for links are changing anyway. Don’t get me wrong. Links will always be important, but you don’t really have to request links. The answer is simply to make your blog or website more linkable. If you do that then you’ll get the links. Not really a barrier to entry. This is more of an opportunity to get creative with your on-page elements and make your websites more sticky.

Money Doesn’t Buy Trust

No. 8 confuses me. Trust is built through good customer service. Sure, big businesses have more money, but can they buy your trust. No one’s ever bought mine. If they don’t earn it, they don’t get it. That’s where small business owners have an edge.

Free Tools

I know this one was meant to be a joke, but Aaron Wall isn’t the only person creating and giving away free tools. Besides, if he was, there will always be someone with a community spirit who will create cool tools for small businesses. Not a barrier to entry.

The Great Information Exchange

I agree with Matt:

I think this is to the benefit of small businesses. Small businesses are the ones better able to get necessary information out to customers who seek it. They can reply to email requests much quicker, and with a human touch that the Big Boys usually can’t touch.

Are Some Barriers To Entry Natural?

I stick to my original premise that Google’s age factor in its algorithm is perhaps the biggest non-natural barrier to entry for small businesses wanting to implement an Internet marketing strategy. It isn’t the only barrier to entry, but many perceived barriers to entry are merely perceptions. Small businesses can overcome them. In order to succeed online you need to be creative and work hard. There is no substitute for these age old values. Plus, you have a lot few barriers to entry online than you do off line. That means more opportunity.