crazyorganizedchaos

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Blog#3

Insider trading is when an individual trades stock based on information, that has not been made available to the public. One way that an individual could obtain this insider information would be by breaking a fiduciary responsibility.  In the case of insider trading this information could be used to help the person entrusted with the information benefit in a personal manner, while betraying their fiduciary duties. This information could end up giving the insider an unfair advantage over those that do not possess this information.

            However, a number of investors believe that markets rely on the exchange of information to be successful, and when insiders are not allowed to not act on that information, they believe that it creates inefficiencies in the market. An article in Forbes, examines how these restrictions could be hurting ordinary investors. According to the article, they believe that people are under the false assumption that restricting insider information, from the rest of the individuals participating in the market, is in someway helping.  The article argues that what would help, would be if individuals could trade right away using the knowledge they have.  It is believed that this would encourage prices in the market to move, as individuals noticed the trading. The article claims, “If the insiders are buying, they will likely push the stock price up.  That means that current owners would win, while investors hoping to buy in will lose by having to buy at a higher price.  If the insiders are selling, prices are likely to fall. In this case, current owners lose as their holdings drop, but that means that new buyers can get a better price” (Dorfman, 2015).  It is believed that these price changes are inevitable and would happen either way, while the current laws in place only change who profits. The thought behind this statement is that with restrictions in place, the first person to notice and take action on the news release, is the one who is going to profit.  The article goes on to claim that, “Removing restrictions on insider trading does not open up more people to losses or to being taken advantage of by the insiders; rather, the laws just delay the inevitable and move some people to the opposite group of either winners or losers” (Dorfman, 2015). Another significant point made in the article is that with the ease and speed of communication, the investment field can easily be leveled by communicating insider trade announcements, such as those done for earnings.  There was even a recommendation in the article that this be maintained on a website by the SEC, and that these communications would be enough to level the playing field.

            I do believe the article had some compelling points on why insider trading should be allowed. And in fact, this is a debate that has spanned decades, “at least as far as 1966, when a legal scholar named Henry Manne published a book arguing that insider trading is benign, or even useful, because more information makes the stock market more efficient and accurate — no matter how the information has been acquired” (Thomson-DeVeaux, 2016). One key factor, that compels me to agree with the argument that insider trading should be legal, is one of the last points in the article.  We have come a long way since the communication methods used in the 60’s. I do believe that the laws currently in place, are only delaying the price changes that will happen in the market anyway, once the information is made public. So why not allow for those individuals in the know to trigger the change.  In today’s digital world information is available almost instantaneously, so once an insider has taken action in the market, it won’t take long for the market to adjust, and trigger more trade, which would help to establish a more efficient stock market.

References

Dorfman, J. (2015, March 22). Make insider trading legal to stop hurting ordinary investors. Retrieved from https://www.forbes.com/sites/jeffreydorfman/2015/03/22/a-modern-insider-trading-law-would-recognize-the-victims-of-current-law/#1b9feb9f34b3

  Thomson-DeVeaux, A. (2016, October 5). What's so wrong with insider trading anyway? Retrieved from https://fivethirtyeight.com/features/whats-so-wrong-with-insider-trading-anyway/

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Fiduciary

To be fiduciary means to act in the best interest of someone else. This person, the fiduciary, also known as the agent, is to act in a legal and ethical manner to support and take care of the money or assets of another person, known as a principal or beneficiary. To possess a fiduciary duty means that the fiduciary has a duty to provide loyalty, trust and honesty, and should not profit from the fiduciary duty, unless it has been agreed to by the principal.  According to an article on Harvard Law, “Fiduciary relationships are crucial to individuals and societies’ few individuals are self-sufficient or can live alone. The fiduciary services respond to both individual humans and society’s needs: medical treatment addresses individual sicknesses as well as society-wide epidemics”. (Frankel, 2018).

Fiduciary Duties

The fiduciary, or agent, have five primary duties that are owed to the principal.  According to The Committee for the Fiduciary Standard, these five principles are important principles to be used in advisory roles.  These principles are recognized by both the public sector, and by financial professionals.  They include:

1.    Client’s best interest should come first

The fiduciary should always provide loyalty to the principal by putting their interest first.

2.    Act with prudence

The fiduciary should act with skill, knowledge, and good judgement to make the best decisions for the principal.  

3.    Disclose all important facts to the client

The fiduciary should in no way mislead the principal and should work to establish trust.

4.    Avoid conflict between personal interests and those of the principal

 Avoid circumstances that enable a conflict of interest, as this could jeopardize loyalty to the principal.

5.    Fairly manage all unavoidable conflicts, in favor of the client

 When unavoidable conflicts do arise, the fiduciary should resolve the conflict in the best interest of the principal (Aikin, 2009).

Fiduciary Relationship

            I have had an opportunity to witness first hand a fiduciary relationship. In fact, I was the principal in the relationship. The relationship occurred in the mid to late 1980’s, when my grandfather passed away and left his estate to me.  At the time of his passing, I was a minor, and my mother was appointed as the Guardian of the Estate.  According to the Guam Family Law Office, “the guardian must then establish a bank account for the minor and deposit all funds into this account.  The guardian can only expend money from this account with advance court permission.  Normally, the judge will not allow the guardian to use the funds for the child's everyday expenses such a food and clothing.  Parents are expected to pay for these items in the normal course of raising the child” (Guam, n.d.). Unfortunately, that was not the case in this fiduciary relationship.

Breach of Fiduciary Duties

      By the time I reached adulthood, all money, assets and personal effects from the estate were gone. Because the fiduciary was not acting in the best interest of the principal and did not hold up the five duties of a fiduciary, it is clear that this is a breach of fiduciary duties.  The law offices of Martin, Heller, Potempa & Sheppard indicate that “if someone is appointed by the court to become the Guardian of the Estate for minor children but mishandles the children’s finances, this is considered a breach of duty” (Martin, Heller, Potempa, & Sheppard, n.d.).

      It is clear that this breach of fiduciary duties was a result of mishandling finances, disregarding the principal’s best interest, and failing to comply to the laws and regulations of fiduciary duties. According to Martin, Heller, Potempa & Sheppard breaches also “include misrepresentation, misuse of the position, neglect of responsibilities, and failure to disclose information” (Martin, Heller, Potempa, & Sheppard, n.d.), which would have also occurred in this situation.

       With these circumstances, it would have been possible to pursue legal damages, as it could have been shown that there was a mishandling of funds, that were not used for, or by the minor, proving that the actions of the fiduciary had caused me to suffer damages.  However, after evaluating the loss of the estate, and after considering the parties involved, I chose not to take legal action to hold the fiduciary responsible.

References

Aikin, B. F. (2009, July 29). The committee for the fiduciary standard: Five fundamental fiduciary principles. Retrieved from http://www.thefiduciarystandard.org/images/Summary_5Principles.pdf

Frankel, T. (2018, September 10). The rise of fiduciary law. Retrieved from https://corpgov.law.harvard.edu/2018/09/10/the-rise-of-fiduciary-law/

Guam Family Law Office. (n.d.). What is a "Guardianship over the estate of a minor"? Retrieved November 27, 2019, from https://guamfamilylawoffice.com/guardianships/guardianship-over-minors-estate/explanation-guardianship-over-minors-estate

Martin Heller Potempa & Sheppard, PLLC. (n.d.). Breach of fiduciary duty. Retrieved November 27, 2019, from https://www.mhpslaw.com/practice-areas/probate-litigation/breach-of-fiduciary-duty/

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Blog#1

Able Demolition vs. City of Pontiac

The case of Able Demolition versus the City of Pontiac was the result of Able Demolition filing a claim against the City of Pontiac claiming breach of contract, promissory estoppel, unjust enrichment, and quantum meruit.  In response the City of Pontiac filed a motion for a summary disposition stating that Able Demolition did not uphold the terms of the contract.

According to the contract Able Demolition was to acquire a mandatory “Letter to Proceed” on the day of the anticipated service from the Director of Law or a designee.  This letter would act as a written approval to proceed.  The contract also stated that to receive payment the contractor must present the “Letter to Proceed” to the Director of Finance of the City to verify that proper approval was acquired. It was also specified that if the contractor proceeds without the “Letter to Proceed” approval, payment will be forfeited for any unauthorized service that had been performed.  In return the City of Pontiac agreed to pay Able Demolition a set amount per demolition, not to exceed $100,000.00 for the entire year.

When looking at the court case of Able Demolition versus the City of Pontiac I believe the result were fair. The language in the contract was clear and concise and plainly stated the requirements and expectations.  It also clearly stated that the “Letter to Proceed” was essential prior to carrying out the demolition, as well as, being required to collect payment for services.  It was clear that the “Letter to Proceed” was a critical requirement of the agreement, due to the fact that it was needed both prior to, and post demolition.  Both parties agreed to the terms of the contract.

I agree with the outcome of both the trail judge, and the appellate courts.  Again, the contract clearly articulates the requirements and necessity of the “Letter to Proceed”.  Another reason I agree with the decision is that in some instances, it appears that Able Demolition had followed the requirements, as the case indicates Able Demolition did not receive payment for 11 of the houses that were demolished.  This would indicate that they did receive payment for other houses that had been demolished.  This would lead one to believe that the stipulations listed in the contract were carried out for some, but not all of the houses being demolished.  Showing that they did have some understanding of the established contract.

 In regard to the claim filed by Able Demolish, I agree with the courts in the fact that the City of Pontiac did not breach their contract.  According to excerpts from the contract, it clearly states in section V. 5.01, “If the Contractor proceeds without the approval specifically granted in the “Letter to Proceed”, the Contractor shall forfeit any payment for unauthorized services performed as a result of his failure to get said pre-approval “Letter to Proceed”” (Able, 2017).  This clearly shows that the terms of the contract addressed that payment would not be granted if prior approval was not given with a “Letter to Proceed”.  According to Tish Law Office in Ann Arbor, Michigan, “Affirmative Defenses that can be asserted against a claim of promissory estoppel include: 1) existence of a contract (express or implied) between the parties; 2) lack of a clear and unequivocal promise; 3) lack of reasonable detrimental reliance; 4) lack of injustice that can only be avoided if the promise is enforced” (Tishkoff, 2018).  The excerpt from the contract shows that written contract provided  clear and unequivocal expectations which would have resulted in the promise of payment.  When addressing the claim of unjust enrichment, although the City of Pontiac received demolition services of 11 houses, that they did not pay for, a contract exists calling out the terms of payment.  According to an article by Tish Law,  “there is an important exception to the equitable principle of unjust enrichment.  If a contract exists that covers the arrangement, courts will look to the contract itself to resolve the dispute.  In such a case, courts will not allow a claim of unjust enrichment. Campbell v. Troy, 42 Mich. App. 534 (1972) makes the above point regarding the existing of an express contract abundantly clear” (Tishkoff, 2018).  Again, because a clear concise contract was agreed upon by both parties, the contract should take precedence over the unjust enrichment claim. The final claim against the City of Pontiac was a claim in quantum meruit.  Quantum meruit would seek payment for the demolition services rendered, if it was determined that the contract was not legally enforceable, or if the contract contains ambiguous language. However, I agree with the findings of the court, as I believe the excerpts from the contract are unmistakable and direct. The law office of Hettinger & Hettinger indicates that, “When the words of a written contract are clear and unambiguous and have a definite meaning, the court has no right to look to extrinsic evidence to determine their intent. Indeed, if the language of the entire contract is clear and unambiguous, there is no room for construction by the courts, and in such case, the language must be held to express the intention of the parties and the court need not search for meanings nor indulge in inferences as to the intention of the parties” (Hettinger, n.d.).  Another reason for my agreement with the ruling is that Able Demolition was the one to breach the existing contract, by failing to obtain the letter to proceed.  This action had the potential to open the City of Pontiac up to liability, due to the property rights of the properties being demolished.  Due to these reasons, Able Demolition would have no right to take action against the City of Pontiac for damages.

I think there are a number of things that I believe could have contributed to the issues of Able Demolition.  I don’t believe the issue stemmed from a lack of knowledge regarding what would be required when providing demolition work to a city, that could potentially lead to liability issues.  According to Able’s website, “Able Demolition grew to become a top contractor in Detroit and Southeastern Michigan”, the website goes on to state that they “demolish over 350 commercial and residential structures per year” (Able, n.d.).  This shows that they are established in the profession and should be familiar with the requirements of the industry.

One issue that could be plaguing Able Demolition is a lack of a formal internal process.  According to the excerpt, “Able failed to obtain letters to proceed as required by § 5.01 for 11 of the houses it demolished”  with the wording “11 of the” this gives the impression that it did obtain letters for some of the properties it did demolish.  This would lead one to believe that the company could lack a formal process, or proper procedure was not followed for every demolition site, or it could mean that there is an inconsistency among the demolition crews.  Either way, that is something that Able Demolition needs to address, as it has resulted in a loss of revenue.

 References

Able Demolition. (n.d.). We demolish buildings. Retrieved November 14, 2019, from http://www.abledemolition.com/

   Able Demolition, Inc. v. City of Pontiac, No. 273295 (Court of Appeals May 17, 2007).

Hettinger & Hettinger, P.C. (n.d.). Michigan contract law. Retrieved November 13, 2019, from http://www.hettingerlaw.com/sturgis/index.php/sturgis-business-attorney-lawyer/articles/145-michigan-contract-law-february-19-2015

 Tishkoff PLC. (2018, September 21). Promissory estoppel: Have you relied on a promise to your detriment? Retrieved from https://tish.law/2018/09/21/promissory-estoppel-have-you-relied-on-a-promise-to-your-detriment/

 Tishkoff PLC. (2018, February 1). Unjust enrichment. Retrieved from https://tish.law/2018/02/01/unjust-enrichment/

[crazyorganizedchaos]

Current Article Analysis Blog#3

Summary

Social media is becoming more and more a part of what influences us in our day to day lives. For individuals who know how to obtain a strong social media influence, there can be many benefits. So, how do you grow your social media influence?  On November 30, 2018, Ryan White wrote an article for Forbes titled Two Strategies for Millennials to Grow Their Social Media Influence Right Now, that offers some recommendations.  The article points out that with the rise of social media, there also comes the opportunity to generate large amounts of income.  White states that in his experience, “Instagram is one of the most lucrative platforms to be involved with” (White, 2018). He points out that if you have a large enough audience on social media, brands will pay you to get their products in front of your followers.  This is where having a strong social media influence comes in.  The article suggests two strategies to use when working to grow your audience. The first recommendation is that you interact with your audience on a consistent basis.  This can take on different forms, such as, following, commenting, liking or even direct messaging. It is also recommended that the profiles you interact with are active users with accounts that have under 10,000 followers.  Another suggestion offered in the article is to leverage the story feature to reach and engage with more individuals.  Sharing a story at least once a day provides an instance for people to connect with you and increase your following.  

Analyze

The Forbes article offers some good suggestions, that align with our readings from our text.  As White mentions in his Forbes article, Instagram is a great tool for initiating income.  One of the reasons Instagram maybe the right platform, according to our textbook, is that “Instagram does not penalize corporate profiles as severely as Facebook does, so amassing followers on Instagram will lead to more media exposure among those followers than amassing followers on Facebook” (Larsen & Draper, 2018).  Establishing a large following on Instagram allows you to share your brand image and build your brand equity with a large number of individuals.  According to an article in Entrepreneur, consumers “frequently tap into their online network of trusted advisors for firsthand insights on brands they want to try” (DeBroff, 2014).  White also recommends using the story feature to connect with your followers, at least daily. This idea is reinforced in our Digital Marketing textbook when discussing why Red Bull is so successful on Instagram.  According to our text they “posts a new image or video about twice per day and has almost 9 million followers” (Larsen & Draper, 2018).  As social media continues to be a key factor in influencing individuals buying decisions, the more important it will be to establish a large, loyal following that can help bring awareness to your brand, or to have the ability to leverage the individuals that can.  

References

DeBroff, S. (2014, October 20). The consumer revolution as happened and the influencers are now in charge. Retrieved from https://www.entrepreneur.com/article/238649

Larson, J., & Draper, S. (2018). Digital marketing essentials. Retrieved from https://edify.stukent.com/app/publication/d801ea3f-55b7-4374-ac5a-03d0e2cff93f/417149a8-ec84-467e-97c5-5e8291f3d39a/586b5976-dbb0-4d16-80a4d843c572c648/266162dc-d46f-4c2f-ae63-e006013b831c/view

White, R. (2018, November 30). Two strategies for millennials to grow their social media influence right now. Retrieved from https://www.forbes.com/sites/forbesagencycouncil/2018/11/30/ two-strategies-for-millennials-to-grow-their-social-media-influence-right-now/#78a94612f6ce

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Current Article Analysis Blog #2

A website is about educating potential customers on your product, in an effort to lead them to a sale, but what if you’re not seeing the results you think you should be? That’s where analytics comes into play. Being able to analyses how well your conversion funnel is functioning, is a critical aspect in determining how well your website is performing.  I recently read an article on November 12, 2018 from Entrepreneur titled 3 Signs Your Sales Funnel Is Broken (and How to Fix It) written by Syed Balkhi. The article looks at three main indicators that something may need to be adjusted.  According to the article, three signs that may indicate your sales funnel needs some work include

1.     “The purchasing process is difficult to navigate

2.     You’re seeing fewer conversions than you predicted.

3.     You’re not focusing on repeat customers” (Balkhi, 2018).

The article speaks to these three issues above and offers some suggestions on how they can be prevented.

Balkhi argues that if your process is confusing for customers, they will simply leave your sight.  He makes the point that “If someone is already expressing interest in your brand, there’s no need to make that person opt-in using three separate emails or filling out multiple forms. This will only increase your bounce rate and decrease your conversions” (Balkhi, 2018). In fact, our textbook continues this thought by indicating that there are usually three steps in the checkout process, putting the item in the cart, checking out, and filling in credit card and shipping information.  It also advises that, “the conversion funnel provides a useful way to divide the purchase procedure into steps so that a web team can analyze where in the process consumers are having difficulty or are abandoning the purchase procedure” (Larson & Draper, 2018).  This analysis provides valuable information that help address any issues with the website or helps to identify the potential difficulties customers may have in navigating your site.  Calling attention to where these issues lay can provide an opportunity to make adjustments and increase your conversion rates.  

The second indicator called out in the article states that there may be an issue if you are seeing fewer conversions than what you had anticipated.  Part of establishing your sales funnel, is predicting the number of conversions, so if your numbers of way off, you may have a problem.  Using Google Analytics can help determine where the problem might lie. According to Balkhi, “By analyzing this data, you can get an idea of what you need to spend more time on in order to improve your funnel. This will result in more paying conversions” (Balkhi, 2018).  By applying A/B testing to these results, you will be able to make adjustments, to determine what changes are going to have the greatest impact to your customers, and ultimately your conversion rate.  Our textbook takes this one step further, by calling our possible issues.  Larson and Draper indicate that “Analytics properly installed, provides data on how well a website is performing in advancing visitors through the Interest and Desire stages to take Action.  However, a poor conversion rate can have multiple causes.  Generally, if a site is showing a poor conversion rate, it is likely due to (1) poor messaging on the website, (2) poor audience selection, or (3) technical glitches” (Larson & Draper, 2018).  

The third and final sign noted in the Entrepreneur article implies that you need work on your sales funnel, if you’re not focusing on repeat customers.  Although our textbook does not directly address this issue, I believe this is a valid consideration.  An article in CSM Wire calls out the importance of focusing on repeat customers, and the impact they can have on your business.  Based on results from the marketing analytics company, SumAll, it was found that “repeat customers are the foundation upon which profitable businesses are built. According to their analysis, 25% to 40% of the total revenues of the most stable businesses in the SumAll network come from returning customers. Furthermore, steady customers will help businesses weather lean economic times; in a recent 12-month period, businesses with a 40% level of repeat customers generated 47% more revenue than similar businesses with only a 10% level of repeat customers” (Peacock, 2013).  With statics like that, it would be wise to include SEO that targets information for repeat customers.

 References

 Balkhi, S. (2018, November 12). 3 signs your sales funnel is broken (and how to fix it). Retrieved from https://www.entrepreneur.com/article/323052

 Hausman, A. (2015, January 16). An insider's guide to digital marketing analytics. Retrieved from https://www.business2community.com/digital-marketing/insiders-guide-digital-marketing-analytics-01128114

 Larson, J., & Draper, S. (2018). Digital marketing essentials. Retrieved from https://edify.stukent.com/app/publication/d801ea3f-55b7-4374-ac5a-03d0e2cff93f/417149a8-ec84-467e-97c5-5e8291f3d39a/586b5976-dbb0-4d16-80a4d843c572c648/266162dc-d46f-4c2f-ae63-e006013b831c/view

 Peacock, M. (2013, April 16). The true value of repeat customers. Retrieved from https://www.cmswire.com/cms/customer-experience/the-true-value-of-repeat-customers-020492.php

[crazyorganizedchaos]

Expert Session Blog #2 Using Search Intent to Get Results from SEO

Understanding searcher intent is about much more than what keywords should be used to describe what a searcher is looking for. It’s about determining what information they are looking for and providing them with those results.  According to Mitch Causey, Senior Director of Marketing at Lessonly, “SEO is important because being found is priority” (Stukent, 2018). Clearing understanding what information the user is looking for and tailoring your content to fill that need, can help increase vital traffic to your site.  So how does a search query tie to user intent?  An article in Entrepreneur.com states that typically users will fit into three types of intent.   Those three types being navigational, informational, and transactional. The article claims that “With search, the type of intent will depend largely on what stage of the buying cycle the person is in” (Patel, 2017).  This fits directly with the intent funnel basics described in the expert sessions with Mitch Causey.  The funnel looks at which type of intent a user is classified into.  This information is extremely helpful in developing your content to fulfill the users search needs.  For example, if a searcher is in the first stage of the funnel, they are in the informational intent.  This means that they are doing research around something specific and are gathering information.  Our expert session noted that this stage tends to generate a low purchasing intent, but high traffic volume.  To help searchers navigate to the next phase of intent, it is recommended that your content include definitions about your product or services, tips, and ideas (Stukent, 2018).   The middle stage of the funnel is the navigational stage, in which searchers are looking for something specific, in order to compare with other products.  According to Causey, this stage tends to yield individuals with a medium purchase intent and provide a medium traffic volume.  To move these users to the next phase, it is helpful to provide product differentiators, and comparisons (Stukent, 2018). This leaves us with the bottom or transactional stage of the funnel, which represents individuals ready to make a purchase.  These potential customers have a high purchase intent, although they provide a low traffic volume.  In order to convert these searchers into customers, Causey recommends writing about incentives, and reason on why the purchase should happen now (Stukent, 2018). Providing the proper content for each of these funnel stages, will help to fulfill your searcher’s intent, but why should we worry about fulfill your searcher’s intent?  According to Dominate with SEO, “Matching the searcher’s intent can do several things for your website and business:

·       Bring narrow, end-of-funnel traffic prepared to make buying decisions

·       Increase time on page, as the user is interested in thoroughly reading about your niche and topic

·       Increase opt-ins for drip marketing or email subscriptions

·       Get optimal clicks for ad retargeting” (Dominate, 2018).

 So, what can be done to help match a searcher’s intent with your website?  One tip would be to use tools available in Google, to determine what is drawing traffic to your website. When you have an understanding about what is bringing traffic to your sight, you can use this information to assist with establishing the intent behind it. According to SEO Inc., once you know the intent, “Categorize them based on where they fall into the three types of queries. Worry less about the navigational or go questions, because, from an SEO standpoint, you’ve already won those. Focus your efforts on the know/informational queries and the do/transactional queries” (Grant, 2018).  Understanding why users are looking for the information they are and matching your content to that information will have a positive effect on your SEO initiatives.

References

 Dominate with SEO. (2018, October 12). Understanding and using search intent to your advantage [Blog post]. Retrieved from https://dominatewithseo.com/understanding-and-using-search-intent-to-your-advantage/

 Grant, G. (2018, September 28). What is user intent? Understanding user intent for cro and seo [Blog post]. Retrieved from https://www.seoinc.com/seo-blog/user-intent/

 Patel, S. (2017, June 26). 5 tips, tools and tricks for understanding user intent. Retrieved from https://www.entrepreneur.com/article/294650

 Stukent, Inc. (2018, March 14). How to use search intent to get results from SEO [Video file]. Retrieved from https://www.youtube.com/watch?v=Iuaq9qWi6Oo

[crazyorganizedchaos]

Current Article Analysis Blog #1

Trends in e-commerce businesses are continually changing and that’s why it is so important to make sure your SEO marketing strategies change with those trends.  Forbes.com posted an article by Kenny Tripura, just this week on November 2nd, titled Four E-Commerce SEO Trends To Prepare For In 2019.  The article explores the top four e-commerce SEO trends expected in 2019.    Topping the list is voice search capabilities, most of us are already taking advantage of features with Alexa, Siri or maybe Cortana.  Brand-building and conversions is next on the list, as the article points out the link-building has always been critical for e-commerce stores, but “moving forward, it will focus more on creating brand-building relationships with website owners and bloggers that are in your niche” (Tripura, 2018).  Following in the third spot is the user experience, and finally, Website Security which will allow for a secure browsing experience.  According to Tripura, “The year 2018 bought us quite a few developments on the SEO front, and e-commerce business owners will do well to follow these trends if they want to finish strong this year” (Tripura, 2018).

Part of these trends, include the use of smartphones and digital assistants.  As the use of these capabilities continue to increase, I believe the way we perform searches will also change. To help save time, I have found myself accessing digital assistance, such as Siri, more and more to perform searches.  In fact, an article in Forbes about How To Take Advantage Of Voice Search In Your Marketing Campaign states, “ComScore estimates that by 2020, more than half of all searches will be done via voice search” (DeMers, 2018).  This is something that should definitely be taken into consideration when working toward maximizing the relevance of your website.  Another key focus of the article is concentrating more on creating relationships in your niche to improve brand-building and conversions. Creating valuable relationships with bloggers and website owners, will increasing your likelihood of building back links that will enhance your SEO.  All of which ties directly to the importance of link building which is discussed in our textbook.  Emphasis will continue to be needed for a positive user experience. There are a number of instances that our textbook calls out the importance of the user experience.  In fact, our book states that “The most important principle of content marketing is that the content itself must appeal to users” (Larson & Draper, 2018). Making sure that end users have a positive experience and are provided the information they are seeking, helps to ensure that they will once again visit your site, recommend it to others, and engage in a purchase. Much like the Forbes article that identifies website security as one of the top considerations for 2019, our textbook also indicates that “While TLS has long been a standard for online commercial transactions (to ensure no one can steal sensitive information like credit card numbers), internet users are increasingly demanding secure communication on any site they visit” (Larsen & Draper, 2018).  We have seen this to be true, with the recent hacking of personal information from numerous sites, and the response of the effected customers and potential customers. Overall, I would agree that focusing on these four e-commerce SEO trends, as well as some others, will help contribute to a successful 2019.

 References

 DeMers, J. (2018, January 12). How to take advantage of voice search in your marketing campaign. Retrieved from https://www.forbes.com/sites/jaysondemers/2018/01/12/how-to-take-advantage of-voice-search-in-your-marketing-campaign/#6f4ee2be7d43

 Larson, J., & Draper, S. (2018). Digital marketing essentials. Retrieved from https://edify.stukent.com/app/publication/d801ea3f-55b7-4374-ac5a-03d0e2cff93f/417149a8-ec84-467e-97c5-5e8291f3d39a/586b5976-dbb0-4d16-80a4d843c572c648/266162dc-d46f-4c2f-ae63-e006013b831c/view

 Tripura, K. (2018, November 2). Four e-commerce SEO trends to prepare for in 2019. Retrieved from https://www.forbes.com/sites/forbesagencycouncil/2018/11/02/four-e-commerce-seo-trends-to-prepare-for-in-2019/#712b72c13232

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Expert Session Blog #1

Finding and reaching untapped markets is essential for most companies, and affiliated marketing is a great way to accomplish this. Affiliated marketing can be thought of as a way to extend your sales team. According to Victoria Galperina, Head of Affiliated Marketing at Supermetrics, “affiliated marketing is a form of performance-based marketing where companies provide certain goods or services and affiliates promote these goods or services for monetary compensation” (Stukent, 2018).  Establishing an affiliated marketing presence can help increase traffic and spread awareness of your products.

Watching the Expert Session: Affiliate Marketing 101 called out just how much is required when setting up an affiliate.  There are numerous types of affiliates to select from, such as content producers, e-mail marketers, opinion leaders and social media publishers, just to name a few.   I believe it’s important to know your customers, as well as your competitors, to assist with selecting the right affiliates for your business.

It is important to recognize that with the increased use of the internet and mobile devices, affiliated marketing in these areas can help to reach even more potential customers.  According to an article in Forbes, “Mobile consumers use their phones for research. Customers can spend more than 15 hours per week researching.  93 % of these researchers will go on to make a purchase, either online or offline. More than half of the consumers want to make a purchase immediately after completing their research” (Olenski, 2017).  This is where knowing your market, your customers, and your affiliates, can be the key to your success. However, the Expert Session also mentioned, in the tips on running a successful affiliate program, that it is important to always keep searching (Stukent, 2018).  That’s why offering diversity within the affiliate marketing parties in your plan, can provide a greater chance of driving purchases. An article in Business Town notes that to be successful, affiliate marketing plans should involve at least three different parties, those parties include advertisers, publishers, and consumers (Miller, n.d.).  Incorporating this kind of diversity among your affiliates can help target a wider range of people, and as Galperina pointed out in her tips, “it’s all about the people” (Stukent, 2018).  So it is important to remember that once you are established in an affiliate network, it can be difficult to obtain new affiliates outside of that network.

However, there is much more to do than to select the type of affiliates.  You also need to establish the type of commission model and rates that works best for your environment, the payout structure, and the payout method. According to Galperina, some of the popular commission models include cost per acquisition (CPA), cost per sale (CPS), cost per click (CPC) and fixed cost (Stukent, 2018).  But, the work doesn’t stop there, an attribution model will also need to be established, based on what you feel is most important to your business. Galperina mentioned the following four models to consider: first click model, last click model, linear attribution, and U shaped.  Selecting one of these attribution models, can help in solidifying your commission structure.

Don’t forget, as recommended in the video, it is a good idea to establish terms of use, an FAQ document and an open line of communication to help ensure your affiliate marketing plan runs as smooth as possible.

References

Miller, E. (n.d.). How to benefit from affiliate marketing. Retrieved October 31, 2018, from https://businesstown.com/benefit-affiliate-marketing/

 Olenski, S. (2017, November 21). The undeniable importance of mobile affiliate marketing. Retrieved from https://www.forbes.com/sites/steveolenski/2017/11/21/the-undeniable-importance-of-mobile-affiliate-marketing/#6a5d33cb1a9c

 Stukent, Inc. (2018, January 23). Affiliate marketing 101 - how to have your own army of salespeople [Video file]. Retrieved from https://www.youtube.com/watch?v=562QgSaERlw