We recently came across a mining investment web site where traffic has gone from effectively zero to bigger traffic than our entire network, Stockhouse and Kitco. Combined. We were a little shocked that this company had come from nowhere and snuck up on us and taken so much traffic.
Some investigation from our traffic expert found that the person behind the site has been associated with sites that have gone through spectacular spikes in traffic, only to have that traffic drop back to where it started in a short period of time. They used this traffic to drive ad revenue, signing up fake email accounts, driving buying in the market and a variety of other ways of monetizing this traffic.
I couldn’t help but be reminded of some company stock charts we have all seen over the years. So I thought I’d write a quick blog post outlining some of the similarities between stock charts and internet traffic charts.
There are very few bad exploration companies. But those few cause investors to be skeptical of all exploration companies.
There are very few bad internet media companies. But those few cause advertisers to be skeptical of all internet media companies.
When you are pitching investors (retail, brokers and institutions), you need to quickly set your company apart from the sensational scams they have heard about and explain how you are building real value.
When we are pitching to advertisers like you, we need to quickly set our company apart from sensational scams you have heard about and explain how we are building a real audience.
You are in the long process of identifying, defining and extracting a resource. This will provide value to investors who believe in you and want to invest their money with you.
We are in the long process of building an audience that trusts us. This will provide value to advertisers who believe in us and want to invest their money with us.
Here is a long article that talks about web traffic scams. This will give you an overview of some traffic scams that have happened in the past. If you are unfamiliar with traffic scams, reading this article gives you a good example of what a scam looks like. Like a new investor reading an article about Bre-X would be a good example of the potential for investment scams.
As I said almost two years ago, I still feel there needs to be “Resource Investing Media Standards” or an equivalent to NI 43-101 for media companies. If you have any comments or suggestions, please contact me with your suggestions at email@example.com with the subject line “Resource Investing Media Standards.”