[btown]

There's an interesting dynamic here: if McMaster part numbers are searchable on Google, people are going to use Google to search for McMaster part numbers, rather than the McMaster site itself. Which gives all its competitors a chance to bid on those long-tail keywords, or optimize for them.

On the other hand, if you train people that if you want to use McMaster part numbers, you have to use the McMaster site... once you have a customer, as long as your site and inventory don't frustrate them, you have a customer for life.

You're sacrificing inbound for retention, in a highly measurable and testable way, for your unique audience and/or subsets of that audience. I have no doubt this is by design.

[Nemi]

This… is brilliant. Google and Facebook are highly lucrative because they designed a system where your profit margins (as a business) are largely sucked up by Google and Facebook by making you bid against your competitors at higher and higher values until someone is willing to give up almost all of their margins to be the top bidder for the favored “top spot”.

Hypothetically, if you make $1 in profit on your product, theory says that some competitor will bid up to $0.99 to secure that sale and if you don’t bid this amount also, your sales will suffer.

The end result is that Google and Facebook end up consuming all the profits for a large number of businesses online that have to survive by advertising, which explains Google’s immense profit margins.

Assuming what you say is true, this is truly a ballsy move by McMaster. Betting that their website is unassailable by their competition and thus such a value-add that they can forgo playing the losing game that Google and Facebook has setup is brilliant. I have such respect for that.

[jaffa2]

Great post very interesting thanks