SOPA’s stated intent is to protect copyrighted property from being pirated online. The media industry claims that piracy leads to a loss of profits and comes back to haunt the consumer in the end. Many that pirate media justify their actions with qualms of excessive pricing and the disbelief that their indiscretion could have any affect on a fiscally successful company.

Media, be it music, movies, games, etc will feel the burden in different areas, concurrent with their industry model of fiscal responsibilities. Across all boards, piracy widens the gap between the reach and influence of a product to the profits gained by said product. Companies can have a popular title without seeing the financial compensation to cover their costs of that production. With lower expected returns for their investment, companies are forced to raise the cost of that product to the consumer. The raise in cost allows profit margins to retain original or close to original percentages on a particular title. Going further down the chain, retail outlets cannot compete with pirated pricing, thus selling less of that product, and see a decrease in business which results in them hiring less people (fewer jobs).

It’s hard not to understand why companies want to crack down on piracy, regardless of your stance on it. Among the bill’s top proponents are the U.S. Chamber of Commerce and media giants, the Motion Pictures Association of America and the Recording Industry Association of America (RIAA). SOPA aims to protect industry products and industry jobs by allowing the government and private companies to shut down websites that hold copyright infringements.

Criticism of SOPA has been heard loud and strong from the tech industry, particularly in New York City where several tech startups have thrived. Among the bill’s top opponents are LinkedIn, eBay, Facebook, Twitter, Wikipedia and Reddit. These companies have voiced concerned about 1^st Amendment rights and censorship, among others.

What do all these sites have in common and what are they seeing that Congress is not? It requires us to dig into SOPA just a little more. The websites that oppose SOPA are those that are run on user-generated material. Under SOPA, user generated content would become to responsibility of the website itself. Let’s use the example of Pirate Bay. If someone were to post directions on Reddit or Facebook on how to log into Pirate Bay and how to download their favorite movies, Reddit would be accountable for the transgression and held responsible for enabling copyright infringement. The fear is that user generated websites could legally tampered with or worst case scenario, shut down within a few weeks of the bill’s passing.

Sites that rely on user generated content simply cannot exist in their current state under these laws. They are currently not responsible for information uploaded by a user. SOPA changes that. Users fear is that these websites will be replaced with commercialized versions of themselves or be removed/blocked all together.

With millions of pieces of content synchronously being made available, content has become hard to manage in real time. With existing laws in place (Digital Millennium Copyright Act of 1998), an ISP must remove material from web sites that appear to constitute copyright infringement. This can be requested or flagged by the copyright owner or their representative. Under SOPA, websites could be shut down or blocked by simply being accused of enabling copyright infringement.

The tech industry – specifically those sites running on user generated content have created thousands of jobs in the past few years. Slowing down on innovation is not something the country can afford to do, and not something these young companies want to see happen. They claim Congress will seek to end piracy and hurt the tech industry as collateral damage.

For many, it’s hard to garner support for the RIAA. They’re known for being ruthless in their pursuit of those that illegally download music. SOPA however, is not just about piracy, it’s about property. Including intellectual property.

Aside from tangible products and goods that are protected under SOPA, the bill also addresses the issue of intellectual property. A foreign website selling knock-off purses would be covered under the bill. This is considered intellectual property theft.

This is important for companies, specifically those that pride themselves on providing high quality often high price point goods. Buying bad quality, imposter goods presents a bad image of that company to the buyer, in opposition to the image they have developed and portray and in many cases, in direct opposition to the goods they manufacture.  Associating a supposed ‘high end’ brand with bad quality will damage a company’s image, in turn; damage their brand and their profits.

As the United States cannot do anything to shut down a foreign site, the most they can do is block access to it, under the moniker of protecting Americans into not paying for fake goods. This raises all kinds of questions on censorship, government interference and has even drawn the ire of those that claim this violates the principles of a free market.

Amongst the loudest of SOPA opponents, the Reddit community has displayed the true power of the internet and has collectively raised their voices in protest. They’ve managed to raise awareness to the general population, and have made their feeling felt in the pockets of supporting corporations.

Among the top proponents of SOPA was GoDaddy.com. Having faced public backlash for their involvement, they have since backed off. The backlash? A Reddit user called for a national, ‘Change your Provider Day’ in opposition to GoDaddy’s stance. Within 5 days, GoDaddy lost 74,000 domains due to the Reddit-driven campaign.

As GoDaddy hasn’t been getting a break about this lately, let’s give them one and look at why they’ve supported this. The company was being sued by the Academy of Motion Picture Arts and Sciences (which produces the Oscars each year) for facilitating trademark infringement by allowing domains to be registered by individuals that used it to promote the Oscars (ie. 2011oscars.com), without the consent of the Academy. If SOPA passes, GoDaddy is alleviated of responsibility and those sites can just be taken down or blocked.

Another major concern with the bill is that it does very little to actually target piracy. Taking a closer look, SOPA only targets http, or the Hyper Text Transfer Protocol (one of many internet protocols) and does nothing to target the BitTorrent protocol. This protocol which uses neither http nor DNS accounts for approximately 95% of piracy. Thus, the bill does nothing to actually stop piracy where it thrives and only has a negative impact on the structure of the internet which has prospered in the past two decades under the free exchange of information.

In the game of combating piracy, companies are left to wonder to who to blame. Several tech companies have expressed their desire to see the private sector tackle piracy on their own and resist the idea of government regulation of the internet. The comedian, Louis CK is an example of the private sector taking on this issue. The comedian abstained from the production assistance of a larger corporation and opted to film a comedy special, set up his website, and produce the event by himself.

He promoted the special to his fans and admitted that they could pirate it if they want to, but asked for their support and spend $5 to download the special. The low price countered any claims that it would be too expensive for fans to manage. This honest and genuine request resonated with his fan base and others seeking to support the cause. People forewent on downloading a pirated copy of the event, and opted to pay the $5. All profits went to him and covered his production costs. This social test was a stellar success, and Louis CK made over $1 million dollars in sales off the comedy special.

The question becomes if the private sector can tackle this problem on their own by restructuring their own businesses that have seen financial success in the past, or if a heavy handed government ruling that threatens to ‘break’ the internet is necessary. SOPA draws ire from what it fails to do. Fear of SOPA comes from not what it threatens to take away, but from what is can be used to do. As a law is only as good as its interpretation of those regulating it, SOPA can be used to not only protect the intellectual and tangible property of business owners, but to limit free speech and the free flow of information to and from American citizens.

Like the VCR recorder upon its launch, the mp3 player when introduced, and YouTube even today – the answer of large corporations has always been to stifle innovations that can potentially interfere with their business models and profits by trying to get them banned/blocked. Their latest attempt to censor the internet is no different. Think what the world would be like if it weren’t for those tech innovations. SOPA goes beyond protecting the right of copyright owners and takes a dangerous step into government intervention in the flow of information and freedom of speech guaranteed to American citizens.

Steven Sinofsky, President of Windows says that a device with an old Atom processor and 1GB RAM would be enough to run Windows-8, even Windows-7 can run well on that configuration. Windows-8 has improved on system performance and speed on more powerful devices – tablet computers, Mobile Devices, desktop and laptop PC’s. The operating system which is due to released in 2012, works with ARM low power processors. The company will soon reveal details on the chips that will be integrated into desktop and laptop machines.

Microsoft Corp. is also planning to launch its own marketplace; “Windows Store” for Tablet PC’s as well mobile devices. It is being introduced with number of Metro-style apps. The company is ahead of its growing competition in the mobile device and Tablet sectors.

Microsoft President Steven Sinofsky showcased some of the new changes at BUILD. Internet Explorer’s new version-10 will be able to switch between the standard desktop view and Metro style UI. The design language applications of Windows-7 are now easily compatible to run through Windows-8 devices. Sky-Drive storage supports integrated cloud based applications like Mail, Calendar and apps with the user’s Windows Live ID, which will have the new Metro UI process.

Windows has been controlling its growth due to market competition. The global market for Desktop Systems and laptops are slower than in the past, whereas for tablets – they are expected to reach over 70 million at the end of this year and grow up to 300 million in 2015.

For more discussions and conversations about Windows-8, please head over to the forums: http://win8.ms/forums

Since 2005, The BusinessMakers radio broadcast has been bringing entrepreneurs, the “Make It Happen” innovators to the forefront, highlighting the inventors who find a better way and enrich our lives.

The BusinessMakers explore the methods of start-up veterans who made it through the challenges, who made the tough decisions that put them on the road to success. They visit with inventors who will dazzle you with their brilliance and hard work and discuss mistakes and lessons learned.

The BusinessMakers radio show and web site feature the very personal business stories of entrepreneurs, from early stage start-ups, to billionaire octogenarians and all the way to big company intrapreneurs. Their stories are incredible, amazing and inspiring.

This week’s guest is Blueliner CEO, Arman Rousta who discusses the 401kid.com venture with Russ Capper. See the interview below.

Arman Rousta from The Businessmakers on Vimeo.

As wages and other costs in India continue to escalate at rates as high as 15% a year, more New York companies are going next door to Bangladesh…”Bangladesh is definitely emerging as the next center for outsourcing,” says Lilach Nachum, a professor at Baruch College’s Zicklin School of Business…

In Bangladesh, information technology staffers get $5 to $10 an hour, versus $10 to $20 in India. As a result, switching can reduce overhead by as much as half. Some Indian companies that get U.S. outsourcing business are moving their own work to Bangladesh, and their New York clients are happy to follow.

“India is almost oversaturated, but Bangladesh is up-and-coming,” observes Arman Rousta, co-founder and principal of Blueliner Marketing, a New York online marketing consultant with operations in Dhaka, the capital. “People there are hungry.”

Mr. Rousta was initially skeptical when a Bangladeshi-American employee suggested that Blueliner start outsourcing in Dhaka as well as India. But the executive reconsidered when costs began rising. The size of Blueliner’s Dhaka operation is now double that of its Indian one.

Though most of Blueliner’s outsourcing is IT for small and midsized businesses…several larger clients, including Citigroup, have had Web work done in Bangladesh.

This is an excerpt from the article “Outsourcing Moves to Bangladesh,” published in Crain’s New York Business, December 17, 2007. The Full article is available in newsstands from December 17 to the 23 and to members of Crain’s New York Business.com.

What the pros say: “At the end of the day, the technical work and link building will only take you so far. You have to invest in building up the quality of the site so that the search engines regard it as a source of high quality information” – Imran Hassan, Blueliner Marketing

To download and read the entire white paper, please visit Business.com.

For small- and medium-sized business, knowing where to spend the marketing budget to get the best ROI can be a challenge. Take your cue from America’s top corporations: Move your marketing dollars to the web. With the right strategy and technology, your campaigns can produce fast results backed up by a level of business intelligence that allows you to refi ne your messaging on the fl y to increase conversions and drive down costs. Using these techniques can cut your total marketing budget in half, according to Arman Rousta, co-founder and Principal of Blueliner Marketing Services, an interactive marketing firm with offi ces in New York, Chicago, India, and China.

Below are three winning online moves he says you can make to get maximum ROI from your Web presence.

(For more on online marketing, see these companion pieces: Search Engine Savvy, Online Marketing Case Study Andrew S. DiMino; for an in-depth exploration, read our Success Guide to Online Marketing.)

NATURAL SEARCH OPTIMIZATION (NSO)

What is it? Also known as Search Engine Optimization (SEO), NSO includes all the techniques used to get your site noticed by search engines such as Google, Yahoo, and MSN.

Why use it? The number one way Internet users fi nd Web sites is through search engines, so achieving a top organic search ranking is arguably the best way to drive traffi c to your site. It was the number one strategy used by the pros in 2006, according to a report* released by the Search Engine Marketing Professionals Organization (SEMPO). Search drives traffi c to your site 24/7/365.

How to get started: First, make sure your site has lots of relevant content, and add fresh content on a regular basis. (Your human visitors like this, too!) Next, avoid using Flash for navigation elements, and skip the Flash “intro” page; since search engines can’t “see” the text or links within Flash, it creates a barrier to getting the rest of your site noticed. For those who know some HTML, review your code to be sure that the meta-titles (invisible pieces of code that help search engines categorize your content) of every page are unique and accurately refl ect its main theme. Check to see that the most important headline on your page (which should be enclosed within what coders call H1 tags) and the page content contain the keywords you believe users will be searching for. Finally, if your site doesn’t have a site map, now’s the time to add one, and if you do have a site map, consider optimizing it for Google. (See www.google.com/support/ webmasters)

Don’t try “tricks” such as keyword stuffing (filling your page full of keywords to the point that the text no longer makes sense), using hidden content, multiple >h1< tags, or link farms (pages that are merely long lists of links to other sites). Any of these can get your site sandboxed (excluded from search results altogether), leading to a costly loss of traffic. And don’t risk a temporary drop in rankings by doing a major redesign that changes the site structure, page names, and content of your whole site at once. Instead, change your site gradually over the course of several months, and inform important sites linking to you if any of the links they’re using have changed. Timeframe: “We can get your site top Google rankings in fi ve days,” should be the last words out of a potential NSO consultant’s mouth before you show her the door. Don’t expect to see signifi cant results from NSO work for anywhere from three to 6 months. It isn’t unusual for companies to contract for one-year NSO engagements.

Your Investment: If you have an intermediate knowledge of HTML, you can probably do some of the most basic NSO work on a small site yourself, but larger sites or sites in a highly competitive category will need the help of an expert to win. Depending on the size of your site and your industry, Rousta says costs can vary from $500 to $15,000 a month during the terms of your engagement. NSO isn’t a one-shot deal, either; plan on re-evaluating your position and strategy once a quarter after that if you want to stay ahead of the pack. One warning: although the algorithms search engines use are complicated and ever-changing (see Search Engine Savvy), if your NSO consultant treats his trade like a mystical art and can’t explain what he’s doing for you in layman’s terms, that should be a red fl ag that you’re probably working with the wrong person.

Measuring the ROI: Estimating ROI from site optimization is diffi cult because it is a long-term investment, but Rousta and other experts are convinced it is the most cost-effective marketing technique when done properly, bringing increasing returns over time. And if you’re doing it right, NSO also makes your site as friendly to visitors as it is to search engines.

* “The State of Search Engine Marketing,” February 2007; Radar Research, LLC and Intellisurvey for SEMPO (www.sempo.org)

PAY-PER-CLICK (PPC)

What is it? PPC ads (or ‘paid placements’ as they are sometimes called) are displayed alongside organic search results. Your ad will only display with search results for the terms you bid, and no matter how many times they are displayed, you only pay when your ads are clicked.

Why use it? Unlike NSO, with PPC you control (through the amount you bid) where your ads appear, how much each click costs, and when your listings will be shown. If you want to get your site or brand noticed immediately, or you have a time-sensitive campaign to run for a sale or special event, PPC is the way to go. That’s probably why paid listings, although not used as often as NSO by the firms queried in the SEMPO study, accounted for a whopping 86% of total spending. How to get started: Google, Yahoo, and MSN all have do-it-yourself PPC programs, but even though it seems easy, don’t make the mistake of rushing into PPC. “A good paid campaign requires strict attention to which keywords are converting surfers into customers and how much you’re paying for them,” Rousta warns.

Each of the engines provides a keyword tool that will give you a sense of the relative popularity of different terms on its site. Spend some time using them to estimate the number of clicks per day at various bids and with different keywords before you jump into the PPC waters. When writing your ads, be sure that the main title contains the keywords you’re targeting; this greatly increases the ad’s click-through-rate (CTR).

Finally, don’t make the mistake many beginners do of getting caught up in the eBay-like excitement of bidding for a top spot: Although it’s natural to want to be number one, it’s often not the best investment. For instance, if the top bid for a term is $1.25 per click and the second spot is bidding at $.75, it makes a lot more sense to bid $.80 than it does to spend another $.46 a click just to be the “top dog.”

If you can’t commit to managing your bids on a daily basis, you should consider hiring a paid media consultant. They’ll usually charge a percentage of the total spend per month (anywhere from 10% to 25%), but you can avoid costly mistakes by bringing in an expert right from the start.

Timeframe: The great thing about using PPC is the instant gratifi cation; your campaigns will begin to produce results within the fi rst few hours of launch. Then you’ll spend the next weeks and months refi ning your bids and trying new terms to bring costs down and conversions up.

Your investment: Depending on the keywords you bid, prices can range from pennies to up to $40 per click. The good news is the total investment each month is completely up to you. It all depends on how much traffi c you want to drive and what you are willing to spend to get it.

Measuring the ROI: Aside from the promise of immediate results, the other reason top online marketers love PPC campaigns is the ease of tracking their return. Assuming you have a good analytics program in place (don’t overlook Google Analytics – even though it’s free, it has some of the most advanced reporting available), you’ll know exactly how much each “click” eventually nets you and which search terms those clicks came from.

E-MAIL MARKETING

What is it? This form of marketing involves the use of e-mail to build your brand, keep visitors coming back to your site, and promote products or services.

Why use it? Simply put, while 50-60% of all Internet users fi nd what they want with search engines, 90% of them use e-mail.** There’s no quicker way to reach an audience. Compared to “snail mail,” it’s more inexpensive, immediate, targeted, and easily-measured.

How to get started: First, build up a database of subscribers by offering users the chance to “opt-in” to one or more newsletters or special offer categories on your site. Then send them frequent e-mails targeted to the interests they expressed when they signed on. Consider using a “double opt-in” method, in which subscribers have to respond to an e-mail to confi rm their interest after the initial “optin.” While this two-step process will defi nitely reduce the number of sign-ups, it also helps prove you are not a spammer, and can keep you off the “blacklists” (blocked senders list) of major Internet service providers. According to Rousta, most e-mail campaigns have open rates of about 20%. But to get the best results, he suggests doing what’s called “A/B testing”: Pick 10% of your mailing list and split it in half. Send group A one e-mail offer, and group B another. Next, fi gure out which e-mail offer is more popular, then send that to the entire list.

You should never try to manage a large e-mail list yourself unless you have special expertise and the time to work with the various ISPs should you fi nd yourself blacklisted in error. Instead, outsource e-mail list management to companies such as Constant Contact or Cooler E-mail. Using their web-based interfaces, you’ll be able to deal with all the non-technical aspects of sending e-mails yourself, while they juggle the details of bounces, removing users who unsubscribe, adding new users who sign up, and offering proof that you are using industry practices should any spam complaints arise.

Timeframe: The amount of traffic your site gets will determine how fast your list grows, but even while it is still small, treat your subscribers well, offering them special coupons, sales, or free information. Remember: they asked to hear from you on a regular basis, so they are the most likely to buy and keep on buying.

Your investment: You can get started for as little as $15 a month, and send out thousands of e-mails for less than $100 dollars. One good investment you may want to make early on is purchasing leads from a reputable partner through a double opt-in, co-registration process. (This means that while users register for something on another site, they are also given the opportunity to expressly opt-in to your e-mail list.) You could pay up to $.50 per name for such an arrangement, but it will give you the chance to grow your list faster than you could on your own, especially if your site is new.

Measuring the ROI: Like PPC, it’s fairly easy to measure your return on e-mail marketing, especially with the in-depth reporting offered by many of the e-mail service providers. But don’t just track ROI from each e-mail sent – track it by customer over time; you want to know not only if your efforts are increasing sales, but if they are increasing sales per customer.

**according to eMarketer, July 2006 (www.emarketer.com)

In the Spotlight

Each month Prime Strategies spotlights a small business leader from the thriving small business community. We emphasize ideas that have worked, strategy, profitability and ongoing success.

In the Spotlight this month is Arman Rousta, Principal of Blueliner Marketing, a growing and thriving internet marketing company. Headquarters are in New York City with locations in Chicago, China, Bangladesh and India.

Q: – Tell me about Blueliner Marketing. What is your mission?

A: – Blueliner is a group of diverse, media and web savvy entrepreneurs that know how to put strategies in place for building brands and companies. Our strategies are practical and can be implemented by our consultants or by resources within our client companies – it’s usually a collaborative effort. We take a strong analytical and technical approach to marketing, with ROI metrics driving each proposed tactic. Our mission is to promote and improve companies that offer innovative and meaningful products or services.

Q: – What goals and initiatives are you and Blueliner currently working on?

A: – There are several key projects that we are excited about at this moment. After an 18-month web development effort, we are launching and handling all marketing for UrbanPrestige.com, a social networking site for UPwardly mobile professionals. There is a growth-oriented vibe to the site, with a practical and engaging blog network; for example, Listen UP is the relationship blog, Shape UP for health and fitness advice and Wake UP for spiritual guidance.

We are also relaunching the much-anticipated upgrade of the 401kid.com site and college savings software, ESP Wizard 2.0. This already popular website is teaming up with some excellent sponsors that will support a new banner-ad enabled site, which will allow 401kid to offer more pertinent information and services at a lower cost for parents of college bound students.

Last but not least, Blueliner’s Six Pillars of Internet Marketing ™ are in full effect with SogoInvest.com, a new discount brokerage site that we launched in July 2006. Due to the low cost $1 – 3 per trade price offering of Sogo, it is imperative that they achieve a lower Customer Acquisition Cost than key competitors, such as E-trade and Scottrade. That is why they hired Blueliner, and why our Web Analytics team is constantly working to optimize the media budget and seek new ways of raising awareness for Sogo – one of those recently successful new tactics is Blog & RSS Marketing. We have found that the combination of interactive marketing with traditional public relations is a winning formula for cost effective acquisition strategies.

Q: – What are some of the challenges you’ve faced and how have you addressed them?

A: – Knowledge sharing and professional development are two critical challenges for our operation, and I would imagine our peers. Since we have offices in four countries, including the U.S., India, Bangladesh and China, communicating new knowledge and project requirements across time zones is difficult. Keeping our consultants educated on the latest and most effective software solutions and general marketing strategies is at the top of my list of priorities. Recently, we started a “Watch Me Work” in-house webinar program, where staff from anywhere can link in and observe our top consultants in action, during sessions such as “How to implement a Google Adwords Campaign” and “Setting up an A/B test for an Email Marketing Campaign”. In 2007, we are starting an exchange program, where select staff will travel to other offices in order to spend time and exchange knowledge with others from the Blueliner team.

Q: – What value do you place on having good business systems and strategy?

A: – I put a very high value on good business systems, not only for Blueliner, but our clients. For example, if we do our part to generate leads for a client through their website, but they do not have a quality CRM system and follow-up protocol in place to develop those leads, good money and effort are wasted. Further, as new clients and projects come up, the need to effectively manage our resources increases. Good systems for time and task reporting, goal-setting and best practices development cannot be stressed enough. On the flip side, having good people and empowering them to be resourceful when systems are not perfect, is just as important.

Q: – Where do you see your business in 2 years? 5 years?

A: – It is hard to predict. We aim to be on the cutting edge of new business and marketing strategies, now and always. Considering the growth we have experienced over the past several years, as companies come to understand how much they don’t know and need to know about how to approach the Internet, I foresee Blueliner as a nationally recognized pioneer of interactive business strategy. How can the world, individuals and organizations best adapt to new media and technologies, effectively, without being overwhelmed? While that sounds like a broad, over-arching aim, I find it to be relevant to how we operate and what Blueliner aims to be. This vision is true to our entrepreneurial make-up.