luni, 7 mai 2012

Creative Link Building for Ecommerce Sites

Creative Link Building for Ecommerce Sites


Creative Link Building for Ecommerce Sites

Posted: 06 May 2012 02:01 PM PDT

Posted by Stephanie Chang

Some of the greatest challenges my previous ecommerce clients have faced have revolved around developing a cohesive and long-term content/link building strategy. They’ve done all the changes they can on the technical backend of the site, incorporated keywords on the site, created a crawlable internal linking structure, and have paid for PR releases, submitted directory submissions, and written the occasional blog post. Now they ask, what’s next?

The latest Census Report indicates that ecommerce retail revenues are still rising quarter after quarter, meaning there is still boundless potential for the future of ecommerce. In addition, it’s also an exciting time to be involved in SEO as we've begun to realize that now is the time to focus on content marketing, as this is what will distinguish your site from others in the long-term. 
 
Census Graph
 
The purpose of this post is to outline content and link building ideas, provide information on how your site could go about developing this type of strategy, and real-life examples of ecommerce brands that have implemented these tactics.
 

Creative Category Pages

Category pages are the money pages for ecommerce sites. Getting links to these pages is a major win because these are the pages that will be ranking for key head and mid-tail terms. Furthermore, even as products are rotated or as the site undergoes a redesign, the category pages will still remain a part of the site architecture and are the pages least likely to be impacted. However, it’s also a major challenge to garner links to these pages. Who wants to link to a page full of products? 

Start thinking about how you can redesign your category pages to make them more than just another page. For instance, Hema’s category page was designed to become a wacky Rube Goldberg device. This page has gotten 20,826 links from 2,686 linking root domains.

Hema Category Pages

Using Products as Linkbait

Often times, it can be challenging to revamp or redesign category pages, so that valuable, unique content can be added. If that’s the case, selling interesting products on your site can become an effective form of linkbait

Threadless sells creative t-shirts. After the homepage, their second most linked to page is this product page. This product page received 5,065 links from 686 linking root domains, 3,068 Facebook Shares, and 1,167 Facebook Likes. It has received links from high authority sites, such as Wired and Boing Boing. 

Threadless Spoiler Shirt
 
Other examples include:
  • A robot tea infuser from ModCloth. The page received 789 total links from 201 linking root domains from sites, such as Uncrate and The Next Web. 
  • Tactical duty kilt from 5.11. Although this product started off as an April Fool’s Joke, 5.11 ended up making them because of the demand, while also receiving links from sites, such as Alltop.

Leveraging Sales/Deals Pages

Another linkbuilding tactic is to build and maintain a deals/sales page on the site that fulfills SEO requirements, such as having crawlable, indexable content, static URL, incorporating targeted keywords on the page etc... Then keep the same URL and revamp it every time you have a new deal or sale. 

For example, let’s say that your site is giving away really amazing Black Friday or Cyber Monday deals. Target mommy bloggers and coupon deal sites and let them know about it. When bloggers report this sale to their readers, they inevitably have to link back to that page. Once the sale is over, keep the page and revamp it whenever new sales/deals come up. Overtime, the link equity on that page can become significant as it garners more and more links. 
 
Sephora has a weekly specials page (that could use a bit more SEO). However, if you take a look at its backlink profile using Open Site Explorer, you’ll notice that the page has received backlinks from different mommy blogger channels.   
 
Sephora Deals Page Backlink Profile
 

Personalized Product Giveaways

Think about what makes people feel special. Everyone appreciates personalized gifts. With Mother's Day just around the corner, why not create a care package to the top 50 most passionate moms within your community with a personalized thank you from you and your team? It doesn't have to be expensive to show that you care. Now take the surprise of the care package, combine this with people's insatiable desire to share via Pinterest, Tumblr, Twitter, and Facebook, and they've just published and pinned beautiful photos of this sincere gift to their network for the world to see.

 
Kotex Pinned Gift
 
Kotex recently did something similar titled "Women's Inspiration Day". From this campaign, Kotex received an incredible response with almost 100% of the 50 women they sent this gift to posting and pinning this user generated content online, resulting in 2,284 interactions and 694,953 total impressions. This example just goes to show you that sincerity, great execution, and placing something of value perceived value in the hands of your passionate users can pay dividends. 
 

Link-worthy Contests

If personalized product giveaways aren’t possible, consider running effective contests in conjunction with identifying influential individuals on channels using tools, like Followerwonk. This would allow you to systematically target the type of audience and sites you want involved (while also expanding your brand awareness). You need to give something away that people would actually want, especially your target audience. It’s also worth having a little fun with it and seeing if you could come up with some creative tactics that would require contest submissions to link back to your site. 

Some possible ideas include:
  • Fashion/clothing ecommerce sites: Does your boyfriend need a $500 fashion makeover? Send pictures and write a post on the products you would purchase.
  • Tools/home improvement sites: Shopping spree competition - Does a room in your house need a makeover? How would you spend the money using products from our site?

Value of High-Quality Photos

Who doesn’t like looking at pretty pictures all day? We’re all visually stimulated by beautiful images and so really, it’s worth the effort to incorporate large, high-resolution photos on your site. Not to mention as an ecommerce site, your website is the main vehicle for visitors to take a closer look at the products you offer. If I can’t see the product clearly, why should I buy it from your site? How can I even trust it?

Pictures are also an effective linkbuilding tactic. Fab’s 4th most linked to page on their site is the Fab Inspiration wall. It’s a social mood board so that the community can share inspirational designs with each other. Although the impetus for the creation was to incorporate social sharing on the website, its design speaks volumes about the impact of bold, high-quality photos. Not to mention, the page has received links from Elle and Cool Hunting.
 
Fab High Quality Photos

Leveraging Anticipation

There’s something to be said about building anticipation before a product actually hits the market. People are naturally inquisitive and want to be the first to be granted access and try out a product. Think about the huge lines that were outside of Apple stores the day the iPad 3 was released or the anticipation surrounding the release of Diablo 3. 

Startup Visual.ly released a teaser preview video about their product before people were allowed to sign up for public beta. When they finally opened the site up, it inspired 60,000 people to sign up for invites and resulted in 8,500 people following their Twitter account.
 
Visually Beta Signup and Video
 
An ecommerce store that also successfully leveraged anticipation was Bonobos, who are in the business of selling better fitting men’s products. They recently launched a denim line, which expanded their product line from just chinos and cotton pants. The company built a micro site for individuals who wanted to be the first to be notified when the denim product line became live, as well as released a promo video. It was so successful that they ran out of invites! This new product launch received links from Esquire and Dappered, as well as coverage in the WSJ.
 
Link Building with Anticipation

Widening Your Audience

Sometimes we become so entrenched in trying to attract our target audience (What’s their persona? Who do they follow? How can I build a relationship with them?), that we can lose sight of all the other potential opportunities that are out there. Brainstorm all the cool things that you’re doing as a company and what your next initiatives are. Can you make any of these into a story? If you can’t think of any, then think outside your site and your target audience and write a blog post that speaks to them.

Often times, companies use their company blog as a way to promote their products. That’s not the purpose of the blog (unless, perhaps, you’re Apple). People aren’t interested that your site has gone through two iterations of redesigns unless it directly affects them. Most don’t care that your new product is now renamed product 2.0 because it went through a minor change and even if they were interested, would they link to it? People want quality, interesting content that makes them go “Wow, that’s kind of neat. I want to share that!” or “(Name of person) would really enjoy this article. I’m going to send it to them now.” 
 
Let’s say your site sells car brakes. Expand your scope, so that your site speaks to not just people who are interested in buying brakes, but into racing or race cars. There are likely more race car aficionados than brake ones. Use tools like Google Insights for Search and Google Alerts to figure out what are some hot trends in racing. Check out forums and learn more about what they’re interested in. Entrench yourself in these conversations by providing value. 
 
This year, Codecademy launched Code Year, an initiative targeted towards individuals who want to learn to code and have made it their New Year’s Resolution. Each week, people who sign up receive a new coding lesson free. It was a massive success as over 400k individuals have signed up to receive these lessons. The designer who designed the Code Year landing page wrote a phenomenal post on how he designed the page in 1 hour. The purpose of the post probably isn’t targeted towards the 400k individuals who signed up, even though they helped make the site a success. I’d like to think it was targeted towards designers or entrepreneurs currently working on their own startup. The blog post received 671 links from 141 linking root domains from sites like Hacker News, Tech Meme, and Reddit. 
 
Think about anything even semi-related to your industry-inspiring buzz or creating amazing products and write really quality content surrounding it (also use this post as a reference) on your site or blog. 
 
If your site doesn’t have its own blog, consider securing guest blog post opportunities, which is still a valuable medium for link prospecting and link building (especially for building links to deeper pages, like category pages). Blog posting also offers opportunities to reach an audience that has not yet heard of your brand. There are tons of outstanding resources available that already provide in-depth detail on how to go about approaching bloggers for guest blog post opportunities. 
 

Using Personal Stories

The new online marketing landscape offers new opportunities for storytelling and adds a human element to the type of stories that we share. The Coca Cola content initiative demonstrates that content marketing is growing and becoming a vital part of online marketing. There are several other brands that also utilize storytelling as a channel, such as Nike's story on how running reunited a long-distance relationship

From an SEO perspective, storytelling attracts links. This video that told the story about a modern day knifemaker who makes his knives by hand attracted links from the NY Times, FastCoDesign, Huffington Post, and Gizmodo to his business site, Cut Brooklyn
 
The Knife Maker
 
This fantastic video link bait slideshare shows how you can incorporate video into your link building strategy for around $1500. Furthermore, having video instead of just plain text will almost triple the average number of linking root domains. 

Taking a Risk and Creating Amazing Content on a Budget

Let’s say you have a limited marketing budget and aren’t sure that you have the resources to create linkbait content. Having such constraints for marketing is normal, but being creative, bold, and taking a risk can still pay off. Take the Dollar Shave Club as an example. With less than $5,000 budget, Dollar Shave Club was able to create a Old Spice like video about their product that led to over 4.5 million views on YouTube, 27,000 Facebook Shares, and over 2,000 tweets. This LA-based startup combined razors, a monthly subscription model, and a video introducing their company to the world with humor as their way to break into the space. Creating content like this isn't without its risks, but when it pays off and is aligned with your core offering, there are many added benefits (brand awareness, growth in revenue, and word-of-mouth).

Dollar Shave Club

Audio Content Marketing

Here is another great example of how something as random as a late night Facebook comment manifested itself into a No. 1 Amazon.com selling book almost overnight. Adam Mansbach, author of the children's book for adults titled (kids, cover your ears for this one) "Go the F**k to Sleep" quickly garnered the attention of celebrity Samuel L Jackson to do the narrative once he heard there would be an Audible.com version of the book. It was this combination of interesting, yet unique content narrated by a recognizable voice that transformed Audible.com's sales page into one of the domains top linked, most socially shared, and highest reviewed pages on their site.

Quick stats about this audible page.. It has 8,053 user reviews, received links from 351 linking root domains. The page also received a total of 1,092 Links, 21,900 Facebook Shares, 21,124 Facebook Likes, and 1,902 Tweets.
 
Go The F to Sleep

Utilizing Pinterest

Pinterest has experienced rapid growth over the past 6 months with over 10 million registered users. The power of Pinterest is in its ability to drive referral traffic to your ecommerce site. This type of platform presents an opportunity for ecommerce sites to use Pinterest’s user base as a way to effectively engage targeted users by creating content that is relevant to them, and make its products more visible to the right audience. Ideally, the strategy should be to create compelling and valuable content so that users want to click on the pins and land on various product pages. Colby Almond of 97th Floor has created a Viral Guide to Pinterest Marketing, as well as written additional blog posts that introduce how to effectively build your Pinterest following and create the right type of content for this medium. 

Some brands, such as Whole Foods have launched its own Pinterest initiative (which has 28k followers) and use it as a social media channel to represent their core values. They’ve even launched contests, like this “Pins for Mom” one from their account. 
 
Other ecommerce sites, such as Everlane view Pinterest as an opportunity to have its products pinned on different boards. As a result, they’ve incorporated Pinterest’s Pin It functionality on their product pages. 
 
As far as direct SEO benefits are concerned, links from pins and repins are nofollow, as are links that appear in the description. 
 
Everlane Product Page

Lessons Learned When SEO Isn't a Consideration - Honda

Everybody loves a Rube Goldberg machine. They are fun, smart, interesting, and super darn creative. Honda created a Rube Goldberg device crafted out of their car parts called “The Cog”. You know what made this video less cool? The fact that still, to this day, this content is nowhere to be found on any of Honda's websites or YouTube channels. Guess who this did bode well for? A car enthusiast channel known as Web Rides TV with over 3.7 million views and counting. This URL also received links from 582 linking root domains. 

Just imagine the lost opportunity Honda had here to capture the links, social mentions, and brand attention to their website and YouTube Channel. When you begin to think creatively and outside the box on how to more effectively leverage different marketing channels (television in this case), don't forget to make SEO a KPI for your campaign and get that link equity flowing back to your website - self-host that video content on your website, post it on your YouTube channel, and do a focused PR push around your campaign that includes a link back to your site page. Finally, don't leave room for others to be the de facto page that comes up when they search for your amazing work and always incorporate SEO within all of your marketing campaigns.
 
Honda The Cog
 

It's Hard Work, But Keep at It

Link building is hard work and results often don’t appear until months after you’ve invested an incredible amount of time and resources. However, these case studies show that it works and even though results appear minimal at the beginning of the curve, results will grow exponentially at the end of the curve. It’s all about constantly pushing the flywheel, working really hard until you get even a hint of momentum, and then continuing to build upon that tiny amount of momentum until it starts to ease up and pushing through becomes easier. Just keep iterating and don’t give up! 

Additional Resources on Link Building for Ecommerce Sites


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Nurses: Keeping America Healthy

The White House

Your Daily Snapshot for
Monday, May 7, 2012

 

Nurses: Keeping America Healthy

It's National Nurses Week, and here at the White House we're recognizing the significant contributions that nurses make to keep America healthy. Today we're hosting a special session of Office Hours at 3:30 p.m. EDT with Mary Wakefield, a Registered Nurse and Administrator of the Health Resources and Services Administration, which runs many of the programs that help train and support nurses.

Join the conversation:

  • Ask your questions now and during the live event on Twitter with the hashtag #WHChat
  • Follow the Q&A live through the @WHLive Twitter account
  • If you miss the live session, the full session will be posted on WhiteHouse.gov and Storify.com/WhiteHouse

Check out the different ways the new health care law is investing in our country's nurses.

Photo of the Day

Photo of the Day

President Barack Obama talks with advisors aboard Marine One during a flight from Joint Base Andrews, Md., to the White House, May 2, 2012. Pictured, from left, are: David Holmes, Director for Afghanistan; Chief of Staff Jack Lew; Senior Advisor David Plouffe; and Ben Rhodes, Deputy National Security Advisor for Strategic Communications. (Official White House Photo by Pete Souza)

In Case You Missed It

Here are some of the top stories from the White House blog:

Watch: The White House LGBT Conference on Aging
The White House LGBT Conference on Aging will provide advocates, community leaders, and members of the public an opportunity to engage with the Obama Administration on the health, housing, and security needs of aging members of the LGBT community

Weekly Address: A New Chapter in Afghanistan
President Obama calls on Congress to take the money we are no longer spending at war, use half of it to pay down our debt, and use the other half to rebuild America.

President Obama Welcomes the 2012 NCAA Champion Kentucky Wildcats at White House
Presdient Obama congratulates the University of Kentucky mens basketball team on their eighth national championship.

Today's Schedule

All times are Eastern Daylight Time (EDT).

10:00 AM: The President receives the Presidential Daily Briefing

11:00 AM: The President meets with senior advisors

1:00 PM: Press Briefing by Press Secretary Jay Carney WhiteHouse.gov/live

1:45 PM: The Vice President attends a campaign event in Nashville, TN

2:30 PM: The President holds a conference call with elected officials and student government leaders from across the country to discuss the need to prevent rates from doubling on July 1

6:30 PM: The Vice President attends a campaign event in Atlanta, GA

WhiteHouse.gov/live Indicates that the event will be live-streamed on WhiteHouse.gov/Live

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Seth's Blog : The flipping point

The flipping point

When people say, "The tipping point," they often misunderstand the concept in Malcolm's book. They're actually talking about the flipping point.

The tipping point is the sum total of many individuals buzzing about something. But for an individual to start buzzing, something has to change in that person's mind. Something flips from boredom or ignorance to excitement or anger.

It starts when the story of a brand or a person or a store or an experience flips in your head and it goes from good to bad, or from ignored to beloved. The flipping point doesn't represent the sum of public conversations, it's the outcome of an activated internal conversation.

It's easy to wish and hope for your project to tip, for it to magically become the hot thing. But that won't happen if you can't seduce and entrance an individual and then another.

Before the tipping point, someone has to flip. And then someone else. And then a hundred more someones.

We resist incremental improvement in our offerings and our stories because it just doesn't seem likely that one good interaction or one tiny alteration can possibly lead to a significant amount of flipping. And we're right—it won't. The flipping point (for an individual) is almost always achieved after a consistent series of almost invisible actions that create a brand new whole.

And the reason it's so difficult? Because you're operating on faith. You need to invest and apparently overinvest (time and money and effort) until you see the results. And most of your competition (lucky for you) give up long before they reach the point where it pays off.



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duminică, 6 mai 2012

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis


“We Embittered the People to Protect the Future of the Nation"

Posted: 06 May 2012 09:53 PM PDT

If you want to understand the reason PASOK went down in flames in a crushing defeat in Greek elections, simply look at the arrogance and gall of party leader Evangelos Venizelos in a statement following the election.

"We embittered the people so we could protect the future of the nation", said PASOK party leader and troika sponsored clown, Evangelos Venizelos.

Ekathimerini reports Election swing leaves Greece teetering.
PASOK leader Evangelos Venizelos and New Democracy chief Antonis Samaras both declared themselves open to the idea of forming a pro-European national unity administration that would include other parties and would seek to renegotiate the terms of the EU-IMF loan agreement.

"All Greeks have to get to know each other again," said Venizelos, who admitted that PASOK had paid the price for carrying the burden of the crisis. "We embittered the people so we could protect the future of the nation."

He said that the possibility of forming a national unity government with a "European orientation" regardless of parties' positions on the bailout should be explored.

Samaras said he would seek to form a "national salvation government" to keep the country in the eurozone and pledged to "amend" Greece's debt deal with foreign creditors in a bid to boost growth. He attributed the outcome of the elections, in which voters punished the two main parties, to "the disappointment of the Greek people for dead-end policies that have pushed them to the limits."

However, the possibility of a third group joining such a government looked extremely slim last night. Perhaps the best hope for Greece's two main parties would have been Democratic Left, which maintained a clear pro-European stance during the campaign.

However, party leader Fotis Kouvelis repeated his position that cooperation with New Democracy and PASOK was not in Democratic Left's intentions. "The results show people's frustration and anger," he said.

A failure by PASOK and ND to form a government would leave second-placed SYRIZA, the night's big winners, with the option of trying to form a government. Greece's electoral law means that in case of a hung parliament, the first party has three days to form a government, followed by the second party and then the group that comes in third.
National Salvation Party 

The idea that Troika sponsored clowns can form the basis of Greek salvation is ridiculous. Furthermore, Venizelos' statement is right up there with other top Orwellian idiocies.

Top Orwellian Comments Of All Times

  • An American major after the destruction of the Vietnamese Village Ben Tre: "It became necessary to destroy the village in order to save it."
  • Vice President Joe Biden: "We Have to Go Spend Money to Keep From Going Bankrupt."
  • President George W. Bush: "I've abandoned free-market principles to save the free-market system."(For a discussion please see The Most Redeeming Feature of Capitalism is Failure)
  • Nancy Pelosi said "We have to pass the health care bill to see what's in it." (YouTube Video)
  • Larry Summers says "The central irony of financial crisis is that while it is caused by too much confidence, too much borrowing and lending and too much spending, it can only be resolved with more confidence, more borrowing and lending, and more spending." (Reuters)

We can safely add "We embittered the people so we could protect the future of the nation" to that list. As I said, Best thing For Greece is Tell the Troika "Go to Hell", and the election proves most Greek voters know it, even though they have been brainwashed into wanting to stay in the euro.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List


Voters Punish New Democracy and Pasok; New Election, Euro Exit Coming Up? Best thing For Greece is Tell the Troika "Go to Hell"

Posted: 06 May 2012 06:20 PM PDT

Assuming no defects in Pasok or the New Democracy parties, the pro-austerity may just scrape together enough votes to barely piece together a ruling coalition.

How long the coalition lasts is another matter as Pasok was humiliated with a third place showing.

Reuters reports Angry Greeks reject bailout, risk euro exit
The latest official results, with over 61 percent of the vote counted, showed the only two major parties supporting an EU/IMF program that keeps Greece from bankruptcy would be hard pressed to form a lasting coalition.

New Democracy was polling just under 20 percent and PASOK a humiliating 13.6 percent with the Left Coalition on 16.2.

In the last election in 2009, PASOK won a landslide victory with 44 percent and the Left Coalition had just 5 percent.

Left Coalition leader Alexis Tsipras, at 37 Greece's youngest political leader, hailed a peaceful revolution and said German Chancellor Angela Merkel should understand that austerity policies had been defeated.

In another indication of the extent of public anger, the extreme right Golden Dawn party was poised to take nearly 7 percent of the vote. This would allow such a party to enter parliament for the first time since the fall of a military dictatorship in 1974.

Several analysts said the unprecedented fragmentation of the vote could bode weeks of instability and force another election. But a New Democracy source said the party would not ask for repeat elections if it finished up as the largest party. Samaras is likely to be invited to try to form a government on Monday.

Greece faces an acid test as soon as next month when it must give parliamentary approval for over 11 billion euros in extra spending cuts for 2013 and 2014 in exchange for more EU/IMF aid.

That looks like a tough task even if a new government can be formed in time, given the success of anti-bailout parties.

Under the constitution, Greek President Karolos Papoulias will give the biggest party after the election three days to form a government. If it fails, the next largest group gets a chance and so on down the line. If they all fail, new polls would be called about three weeks later.
Best thing For Greece is Tell the Troika "Go to Hell"

Short-term Greece is likely to face strong inflation, perhaps even hyperinflation if it returns to the Drachma. However, long-term Greece faces a 10 year or longer permanent recession with austerity upon austerity upon austerity if the eurozone stays intact and Greece stays in the eurozone.

Had Greece left the eurozone two years ago it would be far better off today, and the sooner it tells the Troika where to go, the sooner Greece has a chance to recover.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List


Splintering of Greece: Will Anyone Rule? Exit Poll Has Anti-Bailout Party in Second Place

Posted: 06 May 2012 09:55 AM PDT

Preliminary exit polls are not good for the pro-austerity, keep Greece in the Eurozone at any cost coalition as 3 parties vie for top post
An exit poll commissioned by Greek media shows three parties are vying for the top spot in the country's critical parliamentary elections, with no definitive front-runner and none gaining enough votes to form a government.

According to the exit poll, the conservative New Democracy party will get between 17 percent and 20 percent; the formerly majority socialist PASOK between 14 percent and 17 percent, and the left-wing Radical Left Coalition, or Syriza, between 15.5 percent and 18.5 percent.

The extreme right-wing Golden Dawn is projected to win enough votes to enter parliament, with between 6 percent and 8 percent, well above the necessary 3 percent threshold.
It is widely expected that New Democracy and PASOK will combine to form a coalition. Both want to stay with the Euro. However, New Democracy wants changes made to agreed upon austerity measures.

PASOK leader Evangelos Venizelos is nothing but a tool for the eurocrat clowns and appears to be a big loser in the elections vs expectations just a few short weeks ago.

Exit Poll Has Anti-Bailout Party in Second Place

Other exit polls show the Radical Left Coalition (Syriza) at 16-19%. Bloomberg reports New Democracy Slightly Ahead in Greek Election, Exit Poll Shows
Antonis Samaras's New Democracy party showed a slight lead in Greek elections today, receiving between 17 percent and 20 percent of the vote, an exit poll forecast.

Anti-bailout party Syriza got between 16 percent and 19 percent, according to the exit poll broadcast on state-run television NET. Socialist Pasok got between 14 percent and 17 percent, according to the poll.
Spotlight on the Radical Left

The Wall Street Journal proclaims Greek Leftist Comes Into His Own
Young and charismatic, Alexis Tsipras may be the man to watch on the Greek political scene.

The 37-year-old, who's an engineer by training, heads the Coalition of the Radical Left — or Syriza — an umbrella left-wing party that brings together various leftist strands ranging from Communist to Social-democrat and environmentalist groups.

His party has seen its polling figures rise in recent weeks, ahead of the May 6 elections. The last polls—before a two week blackout period imposed ahead of Sunday's vote–showed Syriza poised to become the third largest party for the first time in its history, garnering on average above 10% of the popular vote.

Mr. Tsipras advocates the annulment of Greece's second bailout program with the fiscal-consolidation and structural-reform policies attached to it.

In a recent interview with a Greek website, Mr. Tsipras said the country was becoming a "protectorate, a colony" under the tough measures that Greece's troika of creditors–the European Union, the European Central Bank and the International Monetary Fund–demand to continue funding the country's bailout.

"It is not our choice to leave the euro. But the sacrifices made by the Greek people are not for the euro, they are for oligarchs, the plutocrats, the big capital," he said in the interview, adding that these sacrifices were made so that "[German Chancellor Angela] Mrs. Merkel and the northern countries benefit and run surpluses and the southerners run deficits."

Tsipras could well find himself leading the main opposition party after the elections, if Pasok and New Democracy form a coalition government. If Syriza does get around 12%, a realistic prospect according to Nikolakopoulos, that would translate to roughly 30 deputies in a highly-fragmented, 300-seat parliament. That would put the young party leader in a strong position to continue spreading his anti-austerity message.
The WSJ article was written three days ago. If exit polls are accurate, the Radical Left will not be in third place with 10% of the vote, but rather second place with perhaps as much as 18 or even 19 percent of the vote.

It is going to be very difficult forming a coalition government out of this splintered mess.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List


New American Dream is Renting; Reflections on Renting Houses, Cars, Books, Clothes; Will Rentership Fuel the Next Boom? What About Home Prices?

Posted: 06 May 2012 01:07 AM PDT

Housing has now gone full circle. President Bush's "Ownership Society" has morphed into the "Rentership Society". The attitude applies to more than houses as noted in the Wall Street Journal article Renting Prosperity by Daniel Gross.
Americans are getting used to the idea of renting the good life, from cars to couture to homes. Daniel Gross explores our shift from a nation of owners to an economy permanently on the move—and how it will lead to the next boom.

In the American mind, renting has long symbolized striving—striving, that is, well short of achieving. But as we climb our way out of the Great Recession, it seems something has changed. Americans are getting over the idea of owning the American dream; increasingly, they're OK with renting it. Homeownership is on the decline, and home rentership is on the rise. But the trend isn't limited to the housing market. Across the board—for goods ranging from cars to books to clothes—Americans are increasingly acclimating to the idea of giving up the stability of being an owner for the flexibility of being a renter. This may sound like a decline in living standards. But the new realities of our increasingly mobile economy make it more likely that this transition from an Ownership Society to what might be called a Rentership Society, far from being a drag, will unleash a wave of economic efficiency that could fuel the next boom.

The reaction to extended leverage and foolish borrowing isn't to stop consuming and buying; it is to consume and buy more intelligently. That's what the Rentership Society is all about. And it starts at home. Literally. Housing is the biggest single component of consumption in the U.S. economy and the source of much of our present misery. According to the Bureau of Labor Statistics, the typical consumer spends about 32% of his or her budget on shelter. In the last decade, that generally meant borrowing a lot of money to take "ownership" of a home.

For an increasing number of Americans, though, it simply makes more sense to rent these days. According to Moody's, by late 2011 it was cheaper to rent than to own in 72% of American metropolitan areas, up from 54% a decade ago. And the more people who do it, the more socially acceptable and desirable it becomes. The decline in the ownership rate means that about three million more households rent today than did at the height of the bubble.
Zipcars and College Textbooks

Gross points out that students are increasing renting books as opposed to buying them. Of course there are also Kindle and other electronic ways of purchasing or renting books as well.

The same holds true for cars, and not just long-term leases either.

Gross writes ...
The Bureau of Labor Statistics says that private transportation—owning and running a car—is the second largest cost for a typical American household, accounting for 16% of expenditures. Factoring in finance costs, depreciation, repairs, insurance, taxes and gas, AAA calculates that an owner of a midsize sedan who drives 15,000 miles a year spends $8,588 a year on his car.

Enter auto-sharing firm Zipcar. Founded in 2000, it grew by focusing on cities and college campuses. It uses information technology to manage its fleet, and control access—people get cards that let them into garages where cars are kept and into the cars themselves. Users in New York pay a $60 annual fee and then $8.75 per hour on weekdays and $13.75 per hour on weekends—no extra charge for gas or insurance or miles. As the U.S. economy contracted, Zipcar went into hyper-growth: from 225,000 members in 2008 to 650,000 members and 9,500 cars in November 2011. Zipcar, which went public in 2011, has had success in the predictable big cities like Boston, New York and San Francisco, but its vehicles can also be found on 350 college campuses and in smaller cities like Providence, R.I., and Portland, Ore. Large rental agencies like Enterprise and Avis have responded by rolling out similar services.
Will Rentership Fuel the Next Boom? When? Why?

Gross put together a nice article explaining what is happening but the article falls far short of the opening premise "how it will lead to the next boom".

I see no reason renting Zipcars, textbooks, or houses will lead to a boom in anything. Every dime Zipcars makes is a dime lost by GM, Ford, and Toyota.

Kindle is going to put numerous bookstores out of business.

Younger Americans are not buying cars and houses because they cannot afford them. Collectively saddled with a trillion dollars in student loans, many cannot afford to buy much of anything, especially poor job prospects and falling wages.

I see no boom from this. Rather, I see pressures on profits in multiple places for multiple reasons.

What About Housing?

Renting cars and textbooks is the start of a trend that makes perfect economic sense. However, Zipcars, textbooks, clothes, and electronics are one thing, and housing is another.

When sentiment on houses reaches the widespread belief  "It's Better to Rent", prices are bottoming. I expressed that thought on numerous occasions since 2005.

This is how I currently see things.



This is how I have called the housing bubble and bust in real time over the years.


The first four links above are quite humorous. The denial from Bernanke and others is stunningly funny.

Bottoming Process

Some cities are further from the bottom than others, but it is likely some cities have now finally bottomed.

That said, I do not think home prices are going much of anywhere "in general" because there is still years of shadow inventory and years of foreclosures to work through.

Moreover boomer demographics suggest much downsizing is ahead (and who will boomers sell their mansions to?)

Finally, generation Y has far different attitudes than boomers regarding wealth, debt, and possessions and will carry those attitudes for a long time having seen firsthand the trouble their parents and grandparents got into with too much debt, and how they are in the same boat with student debt.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List


Seth's Blog : Avoiding false metrics

Avoiding false metrics

At the local gym, it's not unusual to see hardcore members contorting themselves to fool the stairmaster machine into giving them good numbers. If you use your arms, you can lift yourself off the machine and trick it into thinking you're working yourself really hard.

Of course, you end up with cramped shoulders and a lousy workout, but who cares, the machine said you burned 600 calories...

The same thing happens with authors who put themselves and their readers through the wringer to get a spot on the New York Times Bestseller list (more on this here). Danielle LaPorte built a huge campaign around putting her book on the list, she succeeded in selling a huge number of hardcover copies in a week (far more than most other books) but didn't make the list because of a secret editorial decision that she's not privy to. At the same time, other authors who do a better job of decoding the secrets end up on the list with far fewer sold.

The point isn't that the list is crooked and unfair (though it is). It measures how good you are at getting on the list, not how many copies of the book your readers buy. The reason to avoid the false metric is that it messes with your shoulders, with the way you approach the work, with the real reason you did the project in the first place.

A third example: many car brands now go to obsessive lengths to contact recent car buyers and ask them to rate their buying experience on a scale of one to five. They use these rankings to allocate cars to dealers, ostensibly to reward the good dealerships. Of course, the dealers are in on the game, and instead of doing the intended thing--providing a great experience--all they do is work hard to get people to give them a five when a drone in a call center makes the call. Many of them will clearly state to a customer, "If anything has happened today that would prevent you from giving us a five when they call, please tell us right now..."

The system of false metrics doesn't create a better buying experience, it creates a threatened customer with pressure to give a five.

And my last example: The Arbitron radio rating system used to rely on diaries in which it asked radio listeners to write down which station they had listened to during the day. Several consultants came along with a service that they guaranteed would raise the ratings of any station that hired them. The secret? Repeat the station's call letters twice as often. It turned out that more repetition led to better recall, which led to more people writing down the call letters which led to 'better' ratings.

A useful metric is both accurate (in that it measures what it says it measures) and aligned with your goals. Making your numbers go up (any numbers--your bmi, your blood sugar, your customer service ratings) is pointless is if the numbers aren't related to why you went to work this morning.



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