NYT: Google's Shadow Payroll Is Not Such a Secret Anymore

[David Farber <dave () farber net>]

Begin forwarded message:

From: "Andrew D. Swart" <andrew () swart com>
Date: January 16, 2006 6:30:51 PM EST
To: dave () farber net
Subject: NYT: Google's Shadow Payroll Is Not Such a Secret Anymore
Reply-To: andrew () swart com

Dave,

Haven't seen this on IP; it may be of interest.

Andrew Swart



http://www.nytimes.com/2006/01/16/technology/16ecom.html?th&emc=th

Google's Shadow Payroll Is Not Such a Secret Anymore

By BOB TEDESCHI
Published: January 16, 2006

FEELING depressed because you missed out on Google's stock bonanza? Not
to worry. Just get on the company's shadow payroll.

Hundreds of thousands of people have essentially done just that by
starting blogs, forums or other informational sites and getting paid for
posting ads on Google's behalf. And while the money they earn might not
be enough for them to buy, say, a share of Google's stock, such revenues
are growing.

The trickle-down effect from Google does not stop at fledgling
entrepreneurs. A growing number of rank-and-file contributors to Web
sites are also profiting. Consider Digital Point Solutions, a software
company in San Diego, which publishes an online forum
(http://forums.digitalpoint.com) frequented by about 15,000 users. Any
one of them who starts a new forum discussion topic receives half of the
advertising revenue paid to the site by Google for ads on the front page
of that topic section. (The discussion's creator then splits his share
with others who post messages.)

Google does not actually advertise on the Digital Point site. Rather,
through Google's AdSense program, it places ads on the forum, similar to
the ads that appear next to search results on Google.com. Google scans
the information on the forum's pages, then posts related ads. If the
discussion is about computer hardware, for instance, ads for DVD drives
might appear.

Google pays Digital Point about $10,000 a month, depending on how many
people view or click on those ads, said Shawn D. Hogan, the owner and
chief technology officer of Digital Point.

[snip]




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