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But sometimes it’s helpful to look at SEO from the search engine’s perspective. Their job is to display the most relevant results for a particular search term. They are trying to understand what users are looking for and provide that.

Search engines are also getting smarter. Some of the gimmicky things that may have worked in the past are not longer effective. It’s getting harder to cheat.

As you think about SEO, let me propose two basic questions to consider:

1. Do you know what your customers are searching for online?
2. Are you providing what your customers are looking for?

Basically, you have to actually provide relevant content. You have to answer people’s questions, provide useful or interesting information, and show credibility. If you want to improve your ranking without doing those things, then you’re trying to cheat, and you won’t be successful in the long term.

Within this changing landscape, one intriguing trend is the use of performance-based compensation. While fees are still the dominant form of payment, the use of performance incentives is on the rise.

How does performance-based revenue change things? It causes agencies to become invested in the success of their clients. It forges longer-term relationships.

Another impact relates to how companies approach risk. When the risk of expensive initiatives is shared between agency and client, growth opportunities seem more within reach. This article explains how agency account managers might create “Could-Do’s” – deliverables that the client is hesitant to fund upfront but would still like to achieve.

In today’s risk-averse business climate, such a model might provide some much-needed investment to a troubled economy.

Some agencies are going a step further and getting into venture capital (see here and here).  One such agency (with a Cincinnati presence I might add) is Rockfish Interactive.

It will be interesting to see if this model takes off. Some folks are skeptical of agencies’ ability in this regard and see this as sort of a marketing ploy.

I don’t know how successful Rockfish and other brand venture entities will be, but I think the idea has merit.

In the same way that performance-based compensation reduces risk, agency involvement in ventures could make it easier for new concepts to go to market. Branding, marketing and technology development constitute some of the most challenges components for start-ups. Jointly facing this with agencies eases the challenge and gives agencies incentive to make sure their work produces results.

Our economy needs investment and new business. When companies work together, cooperate, and share the risk, I think success is more likely.

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