M
MattyP
Guest
> LookSmart Infuriates Customers with New Pricing Model
> ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
>
> For a company called LookSmart, they are certainly not looking
> too smart to their customers right now. Complaints have flooded
> in regarding LookSmart's surprise move last month to convert
> to a Pay-Per-Click pricing model.
>
> Many people, including myself, expected LookSmart to follow
> Yahoo's lead in February to move to a re-occurring fee structure
> rather than the "pay once, be included for life" model to
> which people have grown accustomed. In case you weren't aware,
> Yahoo now charges $299 per year to maintain your site in their
> directory. In Yahoo's defense, they at least extended a
> "grandfather clause" to all the existing Web sites in their
> catalog prior to the change. If you paid for a review and
> were already included in Yahoo, you are NOT subject to the
> $299 yearly fee that new Web sites are charged.
>
> As expected, LookSmart has moved to a re-occurring fee structure
> like Yahoo. Unlike Yahoo, they've chosen to charge by the
> number of clicks your site receives rather than a flat yearly
> fee. Pay-Per-Click leader, Overture, has posted strong profits
> in recent years, which most likely was a factor attracting
> LookSmart to the PPC strategy. Unfortunately, LookSmart has
> managed to infuriate a significant portion of their customer
> base with what has been called "draconian" business practices
> by some.
>
> Here is a representative example of the e-mails I received
> regarding the LookSmart change:
>
> "LookSmart unilaterally announced its conversion to a PPC directory
> - no discussion, no grand-fathering, no consideration for
> its existing clients except an unacceptable credit over 20
> months. The arrogance of this company is extraordinary in
> their grab for more money. Their unilaterally derived click
> rate combined with my hit/sales ratio means that I would have
> to pay LookSmart more than my product's selling price for
> each sale.
>
> I have written LookSmart to object to their unilateral changes
> as a violation of my implied listing contract and to withhold
> my agreement to these changes. I have written twice and have
> received no response. I have also faxed my objections to their
> CEO, Evan Thornley concerning breach of contract - April 18th,
> no response."
> -- Paul Uptigrove. President, Dalgrove Inc
>
> Here is another quote regarding the change:
>
> "Looksmart has now removed my site, after I refused to increase
> my monthly click-through to $150 a month - couldn't afford
> to anyway, even if I wanted!
> It took only five days following their $15 credit, to sending
> me an e-mail saying it was all used up. But I have not received
> a single new inquiry from
> these 100 so called click-throughs, and there appears to be
> no way to check whether they are telling the truth or not.
>
> My site is very readable and informative on Celebration town,
> here in South Orlando, and was on page one on most conceivable
> keywords, after I spent many hours with Webposition Gold optimising
> it: www.celebration-florida-celebration-usa.com
>
> Needless to say I am a bit upset, but I also think the searching
> public using Looksmart have lost access to an informative
> site on Celebration."
> -- Roger Hughes
>
> The anger runs so deep that I've even heard of several people
> calling for a class-action lawsuit against LookSmart. LookSmart
> contends that they are within their legal rights to change
> their listing agreement. Whether that turns out to be true
> or not, there is no question of what their customers perceived:
> If they paid their $299 fee for review and inclusion in LookSmart,
> they would not be charged again later to remain listed so
> long as their content, editorially, remained sound. Yahoo
> understood this and granted waivers to everyone already in
> their catalog. LookSmart apparently saw the dollar signs
> from strong-arming their entire customer base into the re-occurring
> fee structure.
>
> Aggravating the situation is the way LookSmart tries to spin
> the issue in an attempt to hide the fact that they are giving
> all their existing customers the shaft. Here's a quote from
> one of their e-mails:
>
> ==================================
> Dear Valued Customer:
>
> LookSmart has launched Small Business Listings, our first pay-per-click
> product for small businesses. This new, improved product replaces
> both Submit and Site Promote. Full details are available at
> http://listings.looksmart.com.
>
> Because you're a valued customer who submitted a listing before
> April 9, 2002, we've automatically upgraded you to Small Business
> Listings.
>
> Your account has already been updated and is ready for you
> to log in.
> We've waived the $49 set-up fee.
>
> We'll give you $300 in free clicks. Each month for the next
> 20 months you'll receive a $15 credit in your account - starting
> today.
> ==================================
>
> In the past, LookSmart's "Valued Customers" did not have to
> pay anything to remain in the directory. Now to keep the
> exact same listing people are being forced to pay anywhere
> from $150 per month as reported by Roger Hughes to as much
> as several thousand dollars or more per month reported by
> other LookSmart customers. How is this a "new, improved product"
> for the consumer?
>
> The paltry $15 per month credit at 15 cents per click that
> they issue you is often used up within days of converting
> your account depending upon your listings traffic volume.
> There's no question that this new pricing model is multiple
> times more expensive for anyone who had a decent listing on
> LookSmart before the change.
>
> Most people do not argue the need for LookSmart to turn a profit.
> However, almost no one agrees with their policy to de-list
> existing sites who already paid to be included in the catalog
> if they did not pay again.
>
> Here's a summary of the complaints I've received from LookSmart
> customers:
>
> 1. Tripled Charged: This latest price increase comes following
> the unprecedented move by LookSmart a couple months ago to
> quietly enroll in affiliate programs across the Web without
> informing affected customers. Therefore, many LookSmart customers
> paid up to $299 to be included in the catalog. Now they are
> being charged 15 cents per click to remain listed. Then some
> "lucky winners" get to pay LookSmart a third time via their
> own affiliate program for each sale or click through they
> generate through that same listing!
>
> At some point a company crosses the line between seeking profitability
> and exploiting their customers. In addition, according to
> recent LookSmart financial reports, LookSmart is already profitable,
> earning $2.7 million in the first quarter of 2002 BEFORE raising
> their prices.
>
> 2. Inaccurate Tracking? I've heard of several complaints
> from people who believe LookSmart may be over-stating click-throughs
> to their Web site based on what they tracked in their Web
> site logs. Normally on other pay-per-click services like
> Overture, you can insert your own tracking URL to log the
> clicks on your end and compare them to what the PPC engine
> bills to you. This helps hold the engine accountable. Unfortunately
> with LookSmart, you must request your listing be "changed"
> to insert a tracking URL. To request a listing change, they
> charge you $49 and do not guarantee that they will make the
> change.
>
> 3. Terms of Service Dramatically Changed: LookSmart changed
> their terms of service without notice and almost without restraint.
> The changes were applied retroactive to all their existing
> customers who purchased under the previous terms of service.
> Changing terms of service is not uncommon on the Web, but
> it is rare that a company is arrogant enough to change the
> pricing model so dramatically without granting a grandfather
> clause to their existing customers.
>
> 4. Refusing Refunds: Even if you purchased the $299 "pay
> once" service just days before the change-over to the PPC
> pricing, LookSmart has been reported to be refusing refunds
> to these customers. So much for the old adage of "satisfaction
> guaranteed."
>
> I know that credit card companies will issue refunds as much
> as three months after the charge if you formally request a
> charge-back. Since it can be argued that the product/service
> you purchased does not exist anymore, you may be able to persuade
> your credit card company to issue a credit to your card for
> your recent purchase. Even if your credit card ultimately
> refuses, LookSmart's card processor will be receiving a strong
> signal that LookSmart is doing something wrong. These processors
> keep a close eye on the number of charge-backs and charge-back
> requests a merchant receives. If they become too high, the
> processor may increase the merchant's fees or drop them altogether.
>
> 5. Sub-Standard PPC Features: If LookSmart's move to a PPC
> pricing model had been accompanied by some exceptional features
> to the consumer, then perhaps the change would have been easier
> to bear. However, unlike pure PPC engines like Overture,
> LookSmart is trying to cling to the pay-per-review model so
> they can still claim a certain amount of editorial independence.
> Be aware that when you agree to pay 15 cents per click with
> LookSmart, you are not guaranteed a certain ranking as you
> are on other PPC engines.
>
> In theory, LookSmart will continue to rank Web sites by the
> relevancy of their listing and not by how much they paid them
> to be listed. However, if you don't pay LookSmart, they imply
> you will be dropped from their catalog as many already have.
> Your site will reappear when you send them more money or your
> $15 credit replenishes the following month.
>
> The problem is that LookSmart gives you the worst of both worlds
> in my opinion. They have lost the credibility of including
> and ranking the most "valuable and relevant" Web sites to
> the searching public versus those who simply pony up the cash.
> This editorial independence distinguished LookSmart from pure
> advertising-based engines like Overture. Today, LookSmart
> includes only those who have paid them enough money to remain
> listed the entire month. Some people report that sites with
> affiliate programs, or with paid accounts are ranked higher
> on LookSmart. Certainly there is now every incentive for
> LookSmart to push paying accounts to the top in order to earn
> more click-through revenue. Their new pricing model works
> in direct opposition to their other important goal of ranking
> sites by relevancy rather than by the money LookSmart receives.
>
> From the perspective of the Web marketer, you do not get many
> of the benefits of a regular PPC with LookSmart. For example,
> on LookSmart you can't choose which keywords searches for
> which you'll be purchasing clicks. Most veteran Web marketers
> realize that some keywords will generate traffic that can
> be worth several times more per click as another keyword.
>
> Some keywords can be so broad that relatively few of the clicks
> will convert to sales. This problem can be solved on engines
> like Overture or FindWhat since you can choose exactly how
> much you wish to pay for a given keyword. Your listing then
> only appears for people searching on the keyword or phrase
> you chose and you pay only the amount you set as your maximum.
>
> With LookSmart, you could have a store that sold only discount
> science-fiction movies. You could end up paying 15 cents
> per click from people who searched only for the word "movies"
> or only for the word "science-fiction." Those people may
> be looking for movie information, movie tickets, Western movies,
> or any number of other things unrelated to your site. In
> all likelihood, the majority of visitors coming to your Web
> site from keywords that are too non-specific will not convert
> to paying customers. Therefore, although the 15 cents per
> click may sound less expensive than certain bids on Overture,
> the cost can be deceiving.
>
> Although you can submit suggested keywords to LookSmart, they
> do not guarantee what keywords or keyword combinations you
> will rank well on, or ultimately pay for. Nor do they allow
> you to pay less than 15 cents for less valuable keywords.
> In my opinion, these are serious flaws to LookSmart's version
> of a PPC program.
>
> 6. LookSmart Affiliate Agreements Cancelled - If you were
> a LookSmart affiliate receiving a commission to refer clients
> to their submission service, you most likely received a notice
> that your affiliate agreement was null and void effective
> immediately. It did not matter if you had a contract that
> said they had to give notice before canceling since LookSmart
> argues that the "Express Submission product no longer exists."
> Therefore, they argue that any contract based on that product
> is no longer valid. We're also told that LookSmart affiliates
> will eventually be invited to come back when LookSmart's partner
> relations department has come up with a new affiliate plan
> to offer. Until then, they are in essence telling all their
> affiliates "Adios, it was nice doing business with you."
>
> To me, this seems like an incredibly dumb move by LookSmart's
> management. At a time when LookSmart needs to be encouraging
> its partners to support them during this unprecedented pricing
> change, they are instead telling them to take a hike. Essentially
> they are saying, "Your contract is cancelled effective immediately
> and furthermore we have no alternative agreement to offer
> you until we decide to get our act together." To me, this
> smacks of arrogance and a general lack of respect not only
> to their customers, but to their partners.
>
> 7. Poor Support - Aspects of their new pricing policy can be
> confusing and difficult to understand with all the positive
> "spin" LookSmart adds to their explanation pages and e-mails.
> They try hard to hide the fact that the change is a major
> price increase. Unfortunately, a number of customers have
> complained about a complete lack of product support by LookSmart.
> Their calls and e-mails go unanswered. When you're being
> forced to pay out the nose for a service, you would hope that
> some of that cash is being used to improve customer support.
>
> 8. Lost Trust - I've seen many controversies regarding the
> search engines over the years. However, I've never seen an
> engine cause so much outrage in so little time than with LookSmart's
> recent changes. On one hand, they start their e-mails with
> "Valued Customer." However, they then follow with actions
> and policies that demonstrate little respect for those same
> "valued" customers.
>.>
> How Smart is it to Still Consider LookSmart?
> ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
>
> At this point you may be asking whether you'd be insane to
> consider spending more money with LookSmart, or whether there's
> a silver lining to be found? Unfortunately, I find it difficult
> to recommend LookSmart as a good value at this time as I have
> in the past. Although they previously charged up to $299
> for a listing, most companies who achieved top rankings recouped
> their investment and made a good profit. Today, there's many
> other factors to consider, making recouping your costs significantly
> more risky with LookSmart.
>
> If you know that you can make a profit paying 15 cents per
> visitor on most of the keywords found in your LookSmart description,
> then it may be worthwhile for your company. However, most
> businesses find their visitor to sales ratio varies significantly
> based on the keyword being searched. Your control is limited
> regarding which keywords or phrases your listing will appear
> under using LookSmart. Therefore, your risk will be greater
> with LookSmart versus other PPC's like Overture. Other PPC's
> allow you to bid precise amounts for specific keywords or
> phrases. Those companies who routinely pay more than 15 cents
> per click may still find LookSmart to be a reasonable value.
> The rest may have difficulty justifying the cost.
>
> How to Get a FREE Listing in LookSmart
> ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
>
> What should you do now? LookSmart's notice to customers gave
> them until July 10th, 2002 to activate their account in order
> to receive the $300 (i.e., 2000 clicks) of credit spread out
> over 20 months. I've noticed that once you activate your
> account, LookSmart starts charging you immediately for each
> click. Once your free credit runs out, most sites are de-listed.
> Some listings seem to be activated automatically by LookSmart,
> so don't be surprised if this happens to you.
>
> You can do a search on MSN, LookSmart's most significant partner,
> and discover that many sites appear to still be listed without
> having "activated" their accounts. If you put your mouse
> over a link, you'll see at the bottom of your browser that
> many links point to the Web site domain for the listing.
> Only some listings have a lengthy tracking URL embedded in
> the listing for the purpose of tracking the click-throughs.
>
> For example, we have one listing that we activated and one
> that we did not. The one that we did not activate is still
> listed on MSN without the tracking URL. The one we did activate
> does reflect the new URL and is rapidly running out of click-through
> credit.
>
> So, if you're smart you will NOT activate your account until
> July 10th (assuming they give you that choice). It would
> appear that you have a FREE listing until that time. Even
> if you want to redeem your credits, why start giving LookSmart
> your money now? Unfortunately, many people will jump right
> over to redeem that "generous" $300 of credit not realizing
> they may have a free ride until at least July 10th.
>
> Be careful about the notices LookSmart sends. I've heard reports
> of people getting e-mails that their account has run out of
> credit, implying that they are being de-listed, and to "renew
> now." However, don't assume they will de-list you automatically!
> They claim to review Web sites and if they feel the site offers
> significant value to LookSmart's catalog, they will leave
> your listing in their catalog for free! Of course, the bigger
> and more well known your site is, the better chance you have
> of them retaining your listing.
>
> If LookSmart does not entice enough people to purchase PPC
> listings, then they could find themselves in a bind. If they
> don't have enough paying customers to fill out the results
> for the thousands of possible queries, then they may be forced
> to display many listings for free.
>
> Certainly LookSmart must be cautious not to degrade the quality
> of their catalog too much or they risk losing the support
> of their significant partners, most notably, MSN. Therefore,
> you could be money-ahead to wait on giving them your credit
> card even if you think their 15 cent per click offer may be
> reasonable for your business. Use WebPosition's Reporter
> to keep track of whether your listing still exists in their
> database and whether it still appears for certain keywords.
>
> There's also a method that can help you obtain a completely
> free listing in LookSmart or Yahoo if you can structure your
> Web site properly. The technique is discussed in WebPosition
> Gold's Page Critic when you download this month's latest knowledge
> base update. Analyze your home page for LookSmart to find
> the new advice.
>
> ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
>
> For a company called LookSmart, they are certainly not looking
> too smart to their customers right now. Complaints have flooded
> in regarding LookSmart's surprise move last month to convert
> to a Pay-Per-Click pricing model.
>
> Many people, including myself, expected LookSmart to follow
> Yahoo's lead in February to move to a re-occurring fee structure
> rather than the "pay once, be included for life" model to
> which people have grown accustomed. In case you weren't aware,
> Yahoo now charges $299 per year to maintain your site in their
> directory. In Yahoo's defense, they at least extended a
> "grandfather clause" to all the existing Web sites in their
> catalog prior to the change. If you paid for a review and
> were already included in Yahoo, you are NOT subject to the
> $299 yearly fee that new Web sites are charged.
>
> As expected, LookSmart has moved to a re-occurring fee structure
> like Yahoo. Unlike Yahoo, they've chosen to charge by the
> number of clicks your site receives rather than a flat yearly
> fee. Pay-Per-Click leader, Overture, has posted strong profits
> in recent years, which most likely was a factor attracting
> LookSmart to the PPC strategy. Unfortunately, LookSmart has
> managed to infuriate a significant portion of their customer
> base with what has been called "draconian" business practices
> by some.
>
> Here is a representative example of the e-mails I received
> regarding the LookSmart change:
>
> "LookSmart unilaterally announced its conversion to a PPC directory
> - no discussion, no grand-fathering, no consideration for
> its existing clients except an unacceptable credit over 20
> months. The arrogance of this company is extraordinary in
> their grab for more money. Their unilaterally derived click
> rate combined with my hit/sales ratio means that I would have
> to pay LookSmart more than my product's selling price for
> each sale.
>
> I have written LookSmart to object to their unilateral changes
> as a violation of my implied listing contract and to withhold
> my agreement to these changes. I have written twice and have
> received no response. I have also faxed my objections to their
> CEO, Evan Thornley concerning breach of contract - April 18th,
> no response."
> -- Paul Uptigrove. President, Dalgrove Inc
>
> Here is another quote regarding the change:
>
> "Looksmart has now removed my site, after I refused to increase
> my monthly click-through to $150 a month - couldn't afford
> to anyway, even if I wanted!
> It took only five days following their $15 credit, to sending
> me an e-mail saying it was all used up. But I have not received
> a single new inquiry from
> these 100 so called click-throughs, and there appears to be
> no way to check whether they are telling the truth or not.
>
> My site is very readable and informative on Celebration town,
> here in South Orlando, and was on page one on most conceivable
> keywords, after I spent many hours with Webposition Gold optimising
> it: www.celebration-florida-celebration-usa.com
>
> Needless to say I am a bit upset, but I also think the searching
> public using Looksmart have lost access to an informative
> site on Celebration."
> -- Roger Hughes
>
> The anger runs so deep that I've even heard of several people
> calling for a class-action lawsuit against LookSmart. LookSmart
> contends that they are within their legal rights to change
> their listing agreement. Whether that turns out to be true
> or not, there is no question of what their customers perceived:
> If they paid their $299 fee for review and inclusion in LookSmart,
> they would not be charged again later to remain listed so
> long as their content, editorially, remained sound. Yahoo
> understood this and granted waivers to everyone already in
> their catalog. LookSmart apparently saw the dollar signs
> from strong-arming their entire customer base into the re-occurring
> fee structure.
>
> Aggravating the situation is the way LookSmart tries to spin
> the issue in an attempt to hide the fact that they are giving
> all their existing customers the shaft. Here's a quote from
> one of their e-mails:
>
> ==================================
> Dear Valued Customer:
>
> LookSmart has launched Small Business Listings, our first pay-per-click
> product for small businesses. This new, improved product replaces
> both Submit and Site Promote. Full details are available at
> http://listings.looksmart.com.
>
> Because you're a valued customer who submitted a listing before
> April 9, 2002, we've automatically upgraded you to Small Business
> Listings.
>
> Your account has already been updated and is ready for you
> to log in.
> We've waived the $49 set-up fee.
>
> We'll give you $300 in free clicks. Each month for the next
> 20 months you'll receive a $15 credit in your account - starting
> today.
> ==================================
>
> In the past, LookSmart's "Valued Customers" did not have to
> pay anything to remain in the directory. Now to keep the
> exact same listing people are being forced to pay anywhere
> from $150 per month as reported by Roger Hughes to as much
> as several thousand dollars or more per month reported by
> other LookSmart customers. How is this a "new, improved product"
> for the consumer?
>
> The paltry $15 per month credit at 15 cents per click that
> they issue you is often used up within days of converting
> your account depending upon your listings traffic volume.
> There's no question that this new pricing model is multiple
> times more expensive for anyone who had a decent listing on
> LookSmart before the change.
>
> Most people do not argue the need for LookSmart to turn a profit.
> However, almost no one agrees with their policy to de-list
> existing sites who already paid to be included in the catalog
> if they did not pay again.
>
> Here's a summary of the complaints I've received from LookSmart
> customers:
>
> 1. Tripled Charged: This latest price increase comes following
> the unprecedented move by LookSmart a couple months ago to
> quietly enroll in affiliate programs across the Web without
> informing affected customers. Therefore, many LookSmart customers
> paid up to $299 to be included in the catalog. Now they are
> being charged 15 cents per click to remain listed. Then some
> "lucky winners" get to pay LookSmart a third time via their
> own affiliate program for each sale or click through they
> generate through that same listing!
>
> At some point a company crosses the line between seeking profitability
> and exploiting their customers. In addition, according to
> recent LookSmart financial reports, LookSmart is already profitable,
> earning $2.7 million in the first quarter of 2002 BEFORE raising
> their prices.
>
> 2. Inaccurate Tracking? I've heard of several complaints
> from people who believe LookSmart may be over-stating click-throughs
> to their Web site based on what they tracked in their Web
> site logs. Normally on other pay-per-click services like
> Overture, you can insert your own tracking URL to log the
> clicks on your end and compare them to what the PPC engine
> bills to you. This helps hold the engine accountable. Unfortunately
> with LookSmart, you must request your listing be "changed"
> to insert a tracking URL. To request a listing change, they
> charge you $49 and do not guarantee that they will make the
> change.
>
> 3. Terms of Service Dramatically Changed: LookSmart changed
> their terms of service without notice and almost without restraint.
> The changes were applied retroactive to all their existing
> customers who purchased under the previous terms of service.
> Changing terms of service is not uncommon on the Web, but
> it is rare that a company is arrogant enough to change the
> pricing model so dramatically without granting a grandfather
> clause to their existing customers.
>
> 4. Refusing Refunds: Even if you purchased the $299 "pay
> once" service just days before the change-over to the PPC
> pricing, LookSmart has been reported to be refusing refunds
> to these customers. So much for the old adage of "satisfaction
> guaranteed."
>
> I know that credit card companies will issue refunds as much
> as three months after the charge if you formally request a
> charge-back. Since it can be argued that the product/service
> you purchased does not exist anymore, you may be able to persuade
> your credit card company to issue a credit to your card for
> your recent purchase. Even if your credit card ultimately
> refuses, LookSmart's card processor will be receiving a strong
> signal that LookSmart is doing something wrong. These processors
> keep a close eye on the number of charge-backs and charge-back
> requests a merchant receives. If they become too high, the
> processor may increase the merchant's fees or drop them altogether.
>
> 5. Sub-Standard PPC Features: If LookSmart's move to a PPC
> pricing model had been accompanied by some exceptional features
> to the consumer, then perhaps the change would have been easier
> to bear. However, unlike pure PPC engines like Overture,
> LookSmart is trying to cling to the pay-per-review model so
> they can still claim a certain amount of editorial independence.
> Be aware that when you agree to pay 15 cents per click with
> LookSmart, you are not guaranteed a certain ranking as you
> are on other PPC engines.
>
> In theory, LookSmart will continue to rank Web sites by the
> relevancy of their listing and not by how much they paid them
> to be listed. However, if you don't pay LookSmart, they imply
> you will be dropped from their catalog as many already have.
> Your site will reappear when you send them more money or your
> $15 credit replenishes the following month.
>
> The problem is that LookSmart gives you the worst of both worlds
> in my opinion. They have lost the credibility of including
> and ranking the most "valuable and relevant" Web sites to
> the searching public versus those who simply pony up the cash.
> This editorial independence distinguished LookSmart from pure
> advertising-based engines like Overture. Today, LookSmart
> includes only those who have paid them enough money to remain
> listed the entire month. Some people report that sites with
> affiliate programs, or with paid accounts are ranked higher
> on LookSmart. Certainly there is now every incentive for
> LookSmart to push paying accounts to the top in order to earn
> more click-through revenue. Their new pricing model works
> in direct opposition to their other important goal of ranking
> sites by relevancy rather than by the money LookSmart receives.
>
> From the perspective of the Web marketer, you do not get many
> of the benefits of a regular PPC with LookSmart. For example,
> on LookSmart you can't choose which keywords searches for
> which you'll be purchasing clicks. Most veteran Web marketers
> realize that some keywords will generate traffic that can
> be worth several times more per click as another keyword.
>
> Some keywords can be so broad that relatively few of the clicks
> will convert to sales. This problem can be solved on engines
> like Overture or FindWhat since you can choose exactly how
> much you wish to pay for a given keyword. Your listing then
> only appears for people searching on the keyword or phrase
> you chose and you pay only the amount you set as your maximum.
>
> With LookSmart, you could have a store that sold only discount
> science-fiction movies. You could end up paying 15 cents
> per click from people who searched only for the word "movies"
> or only for the word "science-fiction." Those people may
> be looking for movie information, movie tickets, Western movies,
> or any number of other things unrelated to your site. In
> all likelihood, the majority of visitors coming to your Web
> site from keywords that are too non-specific will not convert
> to paying customers. Therefore, although the 15 cents per
> click may sound less expensive than certain bids on Overture,
> the cost can be deceiving.
>
> Although you can submit suggested keywords to LookSmart, they
> do not guarantee what keywords or keyword combinations you
> will rank well on, or ultimately pay for. Nor do they allow
> you to pay less than 15 cents for less valuable keywords.
> In my opinion, these are serious flaws to LookSmart's version
> of a PPC program.
>
> 6. LookSmart Affiliate Agreements Cancelled - If you were
> a LookSmart affiliate receiving a commission to refer clients
> to their submission service, you most likely received a notice
> that your affiliate agreement was null and void effective
> immediately. It did not matter if you had a contract that
> said they had to give notice before canceling since LookSmart
> argues that the "Express Submission product no longer exists."
> Therefore, they argue that any contract based on that product
> is no longer valid. We're also told that LookSmart affiliates
> will eventually be invited to come back when LookSmart's partner
> relations department has come up with a new affiliate plan
> to offer. Until then, they are in essence telling all their
> affiliates "Adios, it was nice doing business with you."
>
> To me, this seems like an incredibly dumb move by LookSmart's
> management. At a time when LookSmart needs to be encouraging
> its partners to support them during this unprecedented pricing
> change, they are instead telling them to take a hike. Essentially
> they are saying, "Your contract is cancelled effective immediately
> and furthermore we have no alternative agreement to offer
> you until we decide to get our act together." To me, this
> smacks of arrogance and a general lack of respect not only
> to their customers, but to their partners.
>
> 7. Poor Support - Aspects of their new pricing policy can be
> confusing and difficult to understand with all the positive
> "spin" LookSmart adds to their explanation pages and e-mails.
> They try hard to hide the fact that the change is a major
> price increase. Unfortunately, a number of customers have
> complained about a complete lack of product support by LookSmart.
> Their calls and e-mails go unanswered. When you're being
> forced to pay out the nose for a service, you would hope that
> some of that cash is being used to improve customer support.
>
> 8. Lost Trust - I've seen many controversies regarding the
> search engines over the years. However, I've never seen an
> engine cause so much outrage in so little time than with LookSmart's
> recent changes. On one hand, they start their e-mails with
> "Valued Customer." However, they then follow with actions
> and policies that demonstrate little respect for those same
> "valued" customers.
>.>
> How Smart is it to Still Consider LookSmart?
> ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
>
> At this point you may be asking whether you'd be insane to
> consider spending more money with LookSmart, or whether there's
> a silver lining to be found? Unfortunately, I find it difficult
> to recommend LookSmart as a good value at this time as I have
> in the past. Although they previously charged up to $299
> for a listing, most companies who achieved top rankings recouped
> their investment and made a good profit. Today, there's many
> other factors to consider, making recouping your costs significantly
> more risky with LookSmart.
>
> If you know that you can make a profit paying 15 cents per
> visitor on most of the keywords found in your LookSmart description,
> then it may be worthwhile for your company. However, most
> businesses find their visitor to sales ratio varies significantly
> based on the keyword being searched. Your control is limited
> regarding which keywords or phrases your listing will appear
> under using LookSmart. Therefore, your risk will be greater
> with LookSmart versus other PPC's like Overture. Other PPC's
> allow you to bid precise amounts for specific keywords or
> phrases. Those companies who routinely pay more than 15 cents
> per click may still find LookSmart to be a reasonable value.
> The rest may have difficulty justifying the cost.
>
> How to Get a FREE Listing in LookSmart
> ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
>
> What should you do now? LookSmart's notice to customers gave
> them until July 10th, 2002 to activate their account in order
> to receive the $300 (i.e., 2000 clicks) of credit spread out
> over 20 months. I've noticed that once you activate your
> account, LookSmart starts charging you immediately for each
> click. Once your free credit runs out, most sites are de-listed.
> Some listings seem to be activated automatically by LookSmart,
> so don't be surprised if this happens to you.
>
> You can do a search on MSN, LookSmart's most significant partner,
> and discover that many sites appear to still be listed without
> having "activated" their accounts. If you put your mouse
> over a link, you'll see at the bottom of your browser that
> many links point to the Web site domain for the listing.
> Only some listings have a lengthy tracking URL embedded in
> the listing for the purpose of tracking the click-throughs.
>
> For example, we have one listing that we activated and one
> that we did not. The one that we did not activate is still
> listed on MSN without the tracking URL. The one we did activate
> does reflect the new URL and is rapidly running out of click-through
> credit.
>
> So, if you're smart you will NOT activate your account until
> July 10th (assuming they give you that choice). It would
> appear that you have a FREE listing until that time. Even
> if you want to redeem your credits, why start giving LookSmart
> your money now? Unfortunately, many people will jump right
> over to redeem that "generous" $300 of credit not realizing
> they may have a free ride until at least July 10th.
>
> Be careful about the notices LookSmart sends. I've heard reports
> of people getting e-mails that their account has run out of
> credit, implying that they are being de-listed, and to "renew
> now." However, don't assume they will de-list you automatically!
> They claim to review Web sites and if they feel the site offers
> significant value to LookSmart's catalog, they will leave
> your listing in their catalog for free! Of course, the bigger
> and more well known your site is, the better chance you have
> of them retaining your listing.
>
> If LookSmart does not entice enough people to purchase PPC
> listings, then they could find themselves in a bind. If they
> don't have enough paying customers to fill out the results
> for the thousands of possible queries, then they may be forced
> to display many listings for free.
>
> Certainly LookSmart must be cautious not to degrade the quality
> of their catalog too much or they risk losing the support
> of their significant partners, most notably, MSN. Therefore,
> you could be money-ahead to wait on giving them your credit
> card even if you think their 15 cent per click offer may be
> reasonable for your business. Use WebPosition's Reporter
> to keep track of whether your listing still exists in their
> database and whether it still appears for certain keywords.
>
> There's also a method that can help you obtain a completely
> free listing in LookSmart or Yahoo if you can structure your
> Web site properly. The technique is discussed in WebPosition
> Gold's Page Critic when you download this month's latest knowledge
> base update. Analyze your home page for LookSmart to find
> the new advice.
>
