Welcome back... Michael Kay Research Director HBB Research   Making Your Fortune with Virtual Real Estate Every now and then someone puts together a couple of obvious thoughts, packages them with a snappy name and captures the imagination of the world. Virtual Real Estate (VRE) is just such a case. John Reese – a ‘guru's guru', and famous for his obsession with testing – did just that in 2006. And not only is the idea snappy and smart, it's also available to anyone and everyone with time and patience.  John claims to make hundreds of thousands with the idea and given his reputation, I believe him, but, I'm equally sure everyone can make something. The size of the ‘something' is in your hands. So what is the idea? VRE is really a web page, filled with content and optimized through key words, on which Google AdSense or the Yahoo Publisher Network (YPN) advertisements are placed. The Google etc ads are, of course, made automatically appropriate to the content. So if you're writing about buying a golf club; ads for golf clubs will appear. Every time someone clicks on an ad, the page owner gets a little shot of income. A single web page is, naturally, not going to bring in much – even if someone finds it.  So the trick of VRE is to create sites containing hundreds or thousands of pages, (or networks of inter-linked mini-sites) hence the need for time and patience. The bigger the site, the more attractive it is to the search engines that will gobble up such a feast of content, and, over time it will be well served with *free traffic*. That's the concept and IT WORKS because it goes "with the flow" of the Internet. It satisfies what has emerged as the internet's primary purpose – providing information. It lines up with the philosophies of the search engines – content. And it uses a tool that the search engines depend on for their core profitability – AdSense and YPN.  Brilliant! So who is doing VRE? Well, VRE practitioners fall into two groups – the "force-feeders" and the "organic farmers." The Force Feeders The Force Feeders want to set up passive, money engines that will chug along providing a stream of cash. This is how they do it. Step One: they select a theme that meets the following criteria: Keywords associated with the theme that have a high bid price in Google AdWords; this means a high pay out in Google AdSense and YPN Those keywords attract a high number of searches; partly why they are high priced The keywords have low competition in the search results; not many other webpages are ranking in the search engines for these terms. Step Two: they publish a page (or massive collection of pages) with *keyword optimized* content derived from the web itself through automated feeds and copying articles etc. They may even make the content dynamic, and even more attractive to the engines. Step Three: they place Google or Yahoo ads and flesh it all out with affiliate links. They now have a site that attracts high-paying, high-search, low-competition keywords and gets lots of people looking at its pages (traffic), lots of people finding its pages (targetted customers), and thereby solid Google AdSense etc revenue. Great so far? But (there is always is a but!) the side effect of these sites is the creation of massive duplication of content across the web. This clutters up the search engines and they really don't like it!  This has led to a backlash from Google that (as so often happens on the web) crimps the effectiveness of this program for those coming in after the first wave of builders. The Organic Farmer I‘ve focused on the word ‘organic' because this player believes success in life (and web business) comes ultimately by sticking with the natural flow, compared with the ‘force feeder' who (like his real-world farming counterpoint) tries to accelerate and warp natural growth processes. Here's how the organic folks do it… Step One: the organic farmers start inside themselves; looking for something they have a passion for.  Building a huge site takes a lot of effort and persistence – you'd better love it. Step Two: they build an ever-expanding site or network of sites filled with *keyword optimized* pages full of **original content**, that will attract searchers in their niche by working with the search engines – thereby avoiding the search engine blockers. Naturally, every page is populated with Google, Yahoo and affiliate links. Step Three: they promote traffic to the the site(s), by recycling the original content as articles, viral books etc that they spread across the web. They may even promote in other ways, but articles etc give a strong, long term push. Step Four: they repurpose their content into other digital assets such as Special Reports, ebooks etc and sell them through the site, but also through other channels such as Amazon. Step Five: they make sure the site captures an email list so creating yet another long-term digital asset. Which are you? The force feeders are part of the ‘instant passive income' crowd that fills the web. They may not get-rich-quick with VRE (it takes time to mature), but they aim to get rich without continuing effort. And this is fine. The organics are fascinated by their passion and that comes through in their persistence and the quality of their content.  They may also get wealthy and they will have fun doing it. Both are viable strategies, which one you chose depends on your personality and strategic philosophy. Michael Kay Thoughts to Chew on...   VRE is a classic web approach to business, something that is embedded into the basic logic of the web itself. Nor was it new when John Reese popularized it, it has been around for years in its órganic' form. What John did was show it could be a 'force feed' approach to passive income.   Here are some other thoughts you might consider: VRE takes lots of patience to set up and more effort to manage than it appears. However, once in place, whichever philosophy you subscribe to, it represents a true digital asset. Digital assets are defined by some on the web as engines that produce passive income (like stocks or bonds), but digital assets can also be like regular productive assets (factories) that house opportunities to create revenue VRE (organic) is one of the classic web business models and to milk it of all its potential you need to apply all the tools of web business - the Seven Disciplines (see earlier article).  VRE as a passive engine has real potential - the concept does work. And Google and Yahoo are ambivalent in their approaches to it. Their big fear, that the precious first three pages of their seach results could be diluted is genuine. But their need to earn money with AdSense and YPN is equally genuine. Google has definitely reacted against VRE (passive) sites, Yahoo less so. This has had an impact on organic sites, slowing their acceptance into the engines. VRE is here to stay, the battle between the force feeders and the engines has just begun. But the organics will always (eventually) be OK. HBB Review has created a Special Report on the VRE theme. This short report provides more insights into the HOW of VRE.   VRE Special Report  Warning! If you arrived at this site through a search engine, you need to know where you are. You have landed on a subscriber page for HBB Research's Insights Letter or of the HBB Review. HBB Research is one of the first research programs into web home business linked to a business school. The Insights Letter and the HBB Review are FREE newsletters that provide ideas and insights to mostly new web entrepreneurs Subscribe to "The Insights Letter" Now!! Sign up for HBB Research's FREE "Insights Letter" and receive a long series of FREE insights into the coming boom on web home-based business plus your FREE subscription to HBB Review.  No obligation Enter Your Name: Enter your Email: Copyright Michael Kay HBB Research 2006

The Gold Rush...To Invest in Your Future Click Here Now! The GoldRush is HBB Research's first Report on its research to date. It is possibly the first overview of web home-business on the web and will form the first generation of HBB Research's research program. At 260 pages of single space it contains the equivalent contentof 5 ebooks. A Unique Approach that Delivers Value on a Continuing Basis... The Gold Rush is a LIVING BOOK. As HBB Research's research is on-going, we decided to offer a year of updates with the book. This means a stream of new materials that will arrive as created - FOR FREE. This is an amazing offer -- it is like getting a regular shot of insight for nothing and no effort. This is just the start of the exciting developments at HBB Research. Have You Tried...? What do you know about business? Web home business is simply a unique branch of general business. It has developed its own jargon, largely derived from direct selling. But many concepts in general business apply as well. Click on the link below and try our FUN Questionnaire that exposes you to some of the core concepts of business. Get the answers and see how well you did! Go to the Business Questionnaire. Latest Headline Articles On Web Business From SubmitYourArticle. These automated feeds are valuable tools for building web site content automatically For more information go to SubmitYourArticle See the SubmitYourArticle "Editor's Pick" of the best article submitted this week.  Editor's Pick Read the articles captured in our continually updated articles section. These Guest Articles are from some of the best minds writing on the web today Guest Articles Marketplace Note:  Sources on Continuing Education... As one of our regular features we recommend a source of information - that is essentially free. Typically these are newsletters provided by people trying to interest you in their product.  Summary of the Sources of Knowledge mentioned so far: Storefronts: we recommended you go and look at the materials provided by the two leading Clickbank offerings CBMall and 1st Pro Storefront. Both have excellent materials. SEO search engine optimization by Brad Callen. Perhaps the leading thinker and practioner on the web XSite Pro a report on how to find products that sell. This report is credited to Paul Smithson. Note SiteBuildIt also has tons of information on driving your business Revenge of the Mininets a brilliant concept for driving search engine position by tying mini-sites together. The author is Michael Campbell eBay Profit Pill Newsletter a solid newsletter stuffed with interesting facts about making money on eBay Stuart Elliot a seriously good introduction to the issues involved in writing sales copy Glen Hopkins one of the top list builders on the web and runs an excellent co-registration program SiteBuildIt for Women is a part of Ken Evoy's SiteBildIt offering that is focused on women getting started on the web. Well worth a visit. John Reese Report insights from a legend!Marketing Tips from IMC a little more corporate but excellent anyway Search Clickbank: Looking for Internet Marketing Education? For broader education that will yield a rapid profitability, see HBB Research's selection for its internet education programs. Go to "Insider Secrets" New at HBB Review... A Special Report has been prepared on the idea of Virtual Real Estate (VRE). To go to the Report, click the link VRE Special Report Still available... Women are about to become the dominant force in web commerce - if they haven't already achieved it. This HBB Review article is a working draft of current research being done at HBB Research. On the Web Women Rule. OK! If you are a MAN, we suggest you go to this article before you do another thing with your business.     Under Construction HBB Research's Web Home-business eBook Store is currently under construction. It will focus on books, tools and Specal Reports for the web home entrepreneur. And Finally... At HBB Research we believe in the value of feedback. Each Letter we will ask you for your thoughts on what you are looking for..Here's the question for this issue "What would you like HBB Research to investigate and write about?" Send your thoughts to insights@hbbresearch.com Thanks in advance for your ideas, they are much appreciated. Prior Letters Letter#1: The Web Business Boom includes Personality Questionnaire and FREE Report. Learn about yourself and your chances of success Letter#2: The Long Tail Economics includes Personality Questionnaire and FREE Report. Learn about yourself and your chances of success Letter#3: Seven Sources of Web Wealth includes Personality Questionnaire and FREE Report. Learn about yourself and your chances of success Letter#4:  Seven Keys to Web Business Success includes Personality Questionnaire and FREE Report. Learn about yourself and your chances of success Letter#5: Setting up Your Own Web Business includes Personality Questionnaire and FREE Report. Learn about yourself and your chances of success Letter#6: Assessing Business Opportunities includes the Business Knowledge Questionnaire with Answers - a great learning experience Letter#7: Five Great Ideas in Marketing  includes the Business Knowledge Questionnaire with Answers - a great learning experience Letter#8:  Women Rule in the Web Market includes the Business Knowledge Questionnaire with Answers - a great learning experience Letter#9:  The Overwhelming Importance of Personality includes the Business Knowledge Questionnaire with Answers - a great learning experience Letter #10: Summary  includes access to all the Questionaires and to the HBB review back copies