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The Value of the Free Market



By: Christopher Schill

Similar is how an average Internet user would often see online search engines but they are actually very different. If he does not wish to miss out on things and not know it, the Web surfer should refrain from thinking in this manner. Nowadays, what is important is knowing how search engines work especially since there are a lot of money losing search companies that make business deals that easily affect the results of their products.

They have endured years of unbroken losses and is now making an effort to turn a profit causing search engines and directories to impose listing fees in an effort to separate the wheat from the chaff considering the ever growing Web of 2 billion pages and 14 billion hyperlinks. Ensuring that search engines check their sites for updates more frequently than the non paying sites is the reason why most commercial sites do not hesitate to pay. When search engines rank the search results, what they often do is base the ranking from the amount of money paid by the sites.

When it comes to the quality and quantity of results, technology still plays a key role. Today there are numerous comprehensive search engines and these are Google, AltaVista, and Inktomi and they make use of complex algorithms so that they could easily sort through a number of variables and deliver results immediately. There is a dependency by the open directory of search engines like Yahoo, Looksmart, and Netscape on humans especially when it comes to reviewing and categorizing the best of the Web. Continuing to enter the search equation is capitalism and this can be attributed to how mere mortals cannot keep up leading to a swaying of results.

Considering a pay for position formula, there is one Pasadena based company that has grown into a major search engine as they took part in site listings that were based on how much they bid for a prime spot in various categories. For Mountain View based Google which replaced Inktomi as Yahoo's search engine, this is not completely fond of pay for position or pay for inclusion arrangements. Considering cancer research and the like, Google executives blame these formulas for being the culprit behind the difficulty experience by people in finding potentially valuable information on the Web.

Either sites listed after the first displayed page are not clicked upon or they do not succeed in generating as much traffic and so getting a high search engine ranking is important. For most pay for position arrangements, not only do they consider sites that can handle the heavy traffic they can generate but also reduce the chaff by producing results limited to Web sites that are willing to pay. The concept is tailor made for commerce related requests, which now make up nearly 50 percent of the 100 million queries made on US search engines each weekday.

There is an involvement of the power of the free market when it comes to the search area. Fair business competition is the name of the game as web sites are made to put their money where their mouth is. A search that generates a visitor will amount to a charge of 21 cents for about 32,000 businesses that are paying just to be listed. Considering how banner ads could easily cost about $5 for every customer lead it has been mentioned by an investment banking firm that what they are paying is still a bargain.




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