Ed's Biztalk posts

Watch out for "Google Hell" by association

Andy Greenberg recently published "Condemned to Google Hell" in Forbes Magazine. In the article, he discusses certain SEO tactics used to increase Google ranking. That is, until Google discovers the tactic and blacklists them. It chronicled several companies that were getting page one exposure and making serious money because of it. That is, until Google found out and steered their gravy train right off a cliff.

But that couldn't happen to you, right? You don't use link farms or create bogus content. Well, it might just happen by association.

That's what just happened to me. I advertise on about 15 different web sites to generate leads. My #1 lead source was a company called VacaPro's* (name changed to protect those already doomed to Google hell). VacaPro's* were consistently near the top of Google organically for my search terms (Seattle vacation rentals, Seattle vacation homes, etc.) When a customer clicked on VacaPro's* (which they did very often) site they would see my properties and make a reservation. It was good times.

Then, one day in early April, it all came to a screeching halt. VacaPro's* was (and still is) completely invisible to Google. I thought it was an anomaly for a while. But today I called my sales rep to see what was up. In addition to letting me know he was leaving the company (he has car payments to make, you know), he said that they had indeed been sentenced to "Google Hell." He wasn't exactly sure why they were blacklisted, but said he believed it had something to do with their linking practices. The company is frantically trying to figure out how to fix it. Just to give you an idea of how important Google is for a business, check out my lead totals February through April.

February 641 leads March 764 leads April 173 leads

I'd call a decrease in 500 leads/month pretty dramatic. Fortunately for me, the company is one of several advertising sites I use, so it didn't have a large impact. However, for some, it was their main source of business. My sales rep remorsefully talked about many of their customers were going out of business/laying off employees due to loss of VacaPro's* Google exposure.

Here's the real kicker. As business owners, we really have no idea how a site gets top Google ranking or if/when it will come tumbling down. You could be banking on sales achieved by high Google organic ranking that could instantly run dry. I'm glad that I didn't put all of my eggs in one basket. It could've ruined my business. I'd recommend that for other business owners as well.

I hope this has been a helpful warning. I don't want anyone to get caught off guard.

Biznik Meetings in the San Francisco area

Have there been many Biznik meetings in the San Francisco Bay area? I'd be interested in attending if that were the case.

Thanks,

Ed

How to find the perfect vacation home

I've had about a dozen people contact me this month with the same question. How do I find the perfect vacation home? As January is the #1 booking month in the vacation rental industry it seemed like a good time to post a guide for those of you scrambling to find the perfect place for your 2007 travel adventures. Hopefully, it will give you a good background to the process and help you find the right home for your next trip.

1) Accept the fact that the perfect vacation home doesn't exist. All vacation homes are unique. That's part of the charm! It's not a Four Seasons or a Hilton. You'll be renting a completely unique home with quirks all its own. Can you find a great vacation home? Absolutely! But make sure that your expectations are set accordingly.

2) Understand the fees and how they relate to your trip. Know that it will be less expensive to reserve a week (or longer) rather than a weekend stay. This is the biggest surprise for first time vacation home travelers. Most homes (mine included) list their gross rental rate and list additional costs in their policy page. The additional costs (taxes, deposits, housekeeping, pet fees, etc.) are easy to stomach if they are spread out over a week, but pretty hefty for a two day stay. Here's an example of a $250/night home for a weekend versus a week stay.

Weekend Gross Rental Fee $500 Taxes (usually around 10%) $50
Cleaning Fee $100 Security Insurance $55 Total $705 Adjusted per day rate $352.50/day

Weekly Gross Rental Fee $1,750
Taxes $175
Cleaning Fee $100
Security Insurance $55
Total $2,080 Adjusted per day rate $297.14

3) Where are the best places to search for vacation homes? There are hundreds, if not thousands of vacation rental listing sites. Here are a few of my favorites. Please note that this is only my personal opinion. There are many, many quality sites to choose from when looking for a vacation property.

www.homeaway.com
They have a huge selection of properties and the best usability/design in the business. You're able to search by a number of different criteria that will make it easy to find a house that meets your needs.

www.vamoose.com Vamoose is a search engine for vacation properties. It indexes just about all of the vacation homes out there so the quantity of homes is huge.

www.vrbo.com VRBO is the oldest and largest of the listing sites. While it won't win any awards for design or usability, it has the largest listing of paid vacation home listings. As a sidenote, VRBO was purchased by Homeaway this year. I would expect their overall quality to improve dramatically in 2007.

1. Make sure to see a lot of photos and/or tours/videos. Don't settle for three photos of that only show the oceanfront view. You need to see the house from every possible angle. What do the bedrooms, bathrooms, and kitchen look like? Virtual tours and videos are a great bonus. You want as much perspective as possible.

2. Know the amenities that are important to you and make sure they have them. Every now and then I get requests for special kitchen supplies. This helps me add to my inventory list. If cooking is important, ask if the house has a blender, food processor, cookie sheets, or whatever else is important to your stay. I had a guest once say that he wouldn't stay at my vacation home unless it have "Fox News." While this was an odd request (not a fan of the show myself), for $20/month more I decided to add Fox News and an expanded network of channels that included HBO and Showtime. Not only did he stay there for a week, but a lot of other people now choose my homes (in part) because of my broad cable TV selection. You just might get what you ask for!

3. Find out where it is. Is it really on the beach? Does it really have ski in privileges? Is it on a golf course or merely near a golf course.

Well, that covers some of the basics for now. I'll post again soon with details about rental agreements, security deposits vs. security insurance, and rental policies/procedures. I hope you found this post helpful.

Vacation Home Ownership-Is it for you?

The idea of owning your own little piece of paradise is a topic that comes up quite a bit for me. As the founder of www.homehandler.com (a vacation home marketing and consulting company) I talk with homeowners and prospective homeowners every day about how to make their property a success. However, it’s come up so much lately in social settings that I thought I’d offer some insight into the industry and hopefully some good tips in the process. So, without further adieu, here’s my take on the ten most common questions.

1)Can I create positive cash flow with a vacation property?

That’s the dream, of course. Can it happen? That depends. If you’re looking to buy a home in one of the current hotspots, it'll be pretty tough. The prices have gone up quite a bit over the last few years and the typical peak season for most vacation destinations is pretty short (usually 3 months). That means you’ve got to pay bills for the nine remaining months somehow. Some destinations (like Whistler) have two big seasons. That really helps. However, I'd say to find a destination that you really like that hasn’t hit it big yet. And remember, vacation homes don’t have to be expensive to be great. Think to yourself, “Would I want to stay here.” If the answer is yes, then you might just have something.

2)Should I use a management company or manage it myself?

It comes down to your interest level and available time. If you have the time, enjoy talking with people, and working on houses, you could probably do it yourself. You’ll have a better chance of creating positive cash flow this way, but it's a lot more work. If you don’t have the time or interest in getting your hands dirty, you should probably use a management company. They’ll take a percentage of your revenue, but you’ll probably be happier in the end.

3)How much do management companies usually charge?

The typical range is between 25%-50% of the gross revenue.

4)How tough is it to do yourself? It can be pretty tough. The first year is pretty grueling. You need to furnish your home, buy several sets of sheets, towels, and pretty much everything else. You need to list your site on many listing sites, create a web site, create contracts, write copy, take photos, market your property, talk with prospective guests, hire housekeeping and maintenance, etc. It’s a pretty steep learning curve the first year. However, once you get past the first year, it gets a bit easier. You can figure about 5-10 hours/week once you’re set up. I personally find it enjoyable, but it is a lot of work.

5)Where should I buy? Buy in an area you love. There’s no guarantee the home will appreciate or create a profit, so you might as well get some personal enjoyment out of your investment. Love Mexico? Look at real estate on your next trip. Always go to a great little secluded resort in Canada? Look for a ski lodge you can afford. If all goes well, you’ll create positive cash flow, your home will appreciate AND you’ll get to vacation there every year. How great is that!

6)How do I list my home? I believe the hybrid approach is best for most vacation homeowners. I recommend using a variety of listing sites (like www.vrbo.com or www.vacationrentals.com), a personal web site (mine is www.harper-house.com), search sites (like www.vamoose.com), search engine adwords (during peak booking seasons) as well as advertising with your local visitors and convention bureau.

7)How do I take care of the housekeeping, supplies and logistical details?

Hire the best housekeepers you can and pay them well. This is perhaps the most important way to keep your guests happy. They can help restock supplies, take care of local situations that arise and be more help than you could possibly imagine. I repeat, this is insanely important!

8)What’s the toughest thing for new vacation home owners to grasp?
It’s really tough for a lot of people to let go. You just have to accept the fact that other people will be sleeping in your beds, using your shower, changing the furniture all around (this always happens), and possibly causing damage to your beautiful new vacation home. It’s really tough for some people to come to grips with this. Just take a deep breath and let it go or you won't be happy. That’s what insurance is for.

9)Speaking of insurance, how do I insure a vacation home? Check with your insurance agent. Most homeowner policies do not insure for short term tenancy. Many people take a chance and look the other way in this regard, which I believe is a HUGE mistake. I recommend using B&B or vacation home insurance from companies like James Wolf Insurance and purchasing the maximum amount of liability insurance that makes sense for your area.

10)Is it worth it?

Given the right circumstances, absolutely. However, I know many people who have had negative experiences. I wouldn’t recommend it to someone looking merely for financial gain. While it can be lucrative, it’s also a pretty risky investment. And there really is a lot of work, especially in the first year. However, if you’re willing to get your hands dirty, have a good amount of savings, and know of a little piece of paradise that you’ve always wanted to own, it just might be worth taking the plunge. Best of luck!