Posted by Ben Cook as Blog Monetization
Google Adsense made a shocking announcement on their blog today. They’ve changed the payment structure back to the old , one threshold, one payment structure. But more importantly was this announcement:
“- If you’re outside of North America, Latin America, and Japan, AdSense referrals will be retired.
For publishers not located in any of the three regions detailed above, we’ll soon be retiring referrals promoting AdSense. We’ve found that this referral product has not performed as well as we had hoped in these regions. Again, please keep in mind that you can still generate referrals for the other products listed under the ‘Referrals’ section of your AdSense Setup tab.”
Now I’ve been fairly vocal in my criticism of Google, especially the NonSense program. However, even I didn’t see this one coming. In one fell swoop, Google has basically told all European, African, Asian (except Japan), and Australian AdSense publishers to piss off. The strangest part is that I can’t for the life of me figure out why the hell they’d do this. There is absolutely no risk here for Google. I mean if someone refers another publisher, the only way they get paid is if that new publisher makes $100 in the first 180 days. And, as we all remember, when publishers make money, so does Google.
I guess it could make sense if Google thinks they’ll get the same number of referrals anyway, and they simply don’t want to pay publishers for them anymore. But I’m not sure how they would get the idea that it will play out like that with thousands of people no longer promoting the program. One also begins to wonder, just how many times publishers will let the big G kick them in the teeth before they stop smiling. I’ve already read a post from one big AdSense earner that seems pretty torqued off about the whole thing, and I’m sure the feelings are similar across all the continents Google deemed unworthy.
I’d really like to hear from you on this, especially our non-American readers. How much will this change be effecting you? How much were you previously making from the AdSense referral program? Does this change the way you feel about Google or the AdSense program as a whole?
27 Responses
Neil Duckett
January 9th, 2008 at 9:54 pm
1I can finally find some solace that for once a change like this doesn’t affect me because i live in Japan, it’s a shame for the others though, i don’t see the sense in this decision.
Charles Heflin
January 10th, 2008 at 12:14 am
2You better believe that this is some sort of strategic step toward Google’s global domination.
They are systematically taking over the social web because they understand that search engine traffic is dwindling in favor of it. They have built social interaction into just about everything they do.
This is a strategic move… I just can’t contemplate what they are up to on this one.
Coryan
January 10th, 2008 at 2:53 am
3It certainly seems like an odd move on Google’s part. Why drop a program that seems to be a win-win for everyone? Hmmm, now I’ve gotta go read that blog for myself. Damn you Google, I don’t have time to figure out your odd behavior…but you’ve made me curious.
Marko Pyhajarvi
January 10th, 2008 at 7:52 am
4Just guess where I live.. In Europe. Depressing news. It seems that big guys like Google can do what ever they want. It is annoying for those who are solopreneurs or just starting a business. So, being European solopreneur is not a good idea when it comes to google AdSense referrals
Blog Contest Central
January 10th, 2008 at 8:08 am
5Really did not have an idea why they are dropping the referral program. I’m from Singapore and we are one of the most wired up cities in Asia and the general population uses English more often than not.
Jason Peck
January 10th, 2008 at 8:31 am
6My only theory about why they’d do this is because they already have a ton of people joining the program in those countries…but still this doesn’t really make sense, as you’d think they’d always be trying to grow the program as much as possible.
Moral of the story- don’t depend on one source for all your income.
David Bradley
January 10th, 2008 at 8:40 am
7Presumably, it wouldn’t be beyond a non-US webmaster’s whit to team up with a friend or relative Stateside to circumvent this problem.
db
Ben Cook
January 10th, 2008 at 9:06 am
8@ Jason, that’s what I figured as well but really it would only benefit them to have more people sign up for the program. The people referring them don’t get paid unless the new person makes money and that in turn makes Google more money.
Like I said, the only thing I can think of would be that they believe people will sign up anyway, and that they don’t have to pay affiliates to get the new signups.
SEO Blog
January 10th, 2008 at 10:18 am
9Seems like they have reached the maximum number of customers they could receive from the non listed continents (or rather, they believe they don’t need anymore to pay for referrals as they are well established on those continents).
Me<– European, out of the game!! Oh well, more space for CJ and other affiliate programs?
Ben Cook
January 10th, 2008 at 10:35 am
10@ SEO blog, I’m hesitant to buy that reason only because if that were the case, you’d think the good ole USA would be the first one off the list. I guess really any guess is as good as any at this point because none of them make all that much sense to me (including my own). I’d love to hear what Google has to say about this one (if they even address it).
Read Scott
January 10th, 2008 at 10:36 am
11Although I could care less about Adsense (it sucks), this is a stupid move. The only reason I could think of why they’d do this is the liability and cost of such expanded referrals programs. Maybe they can’t monetize those regions ad effectively and it’s therefore a cost/benefit deal.
David
January 10th, 2008 at 12:06 pm
12I agree with the second part of what Read Scott says. They probably found advertisers didn’t want to pay for clicks coming from those countries due to conversion rates.
Make Money Online
January 10th, 2008 at 1:06 pm
13This one perplexed me. Unless, Google is not able to deliver consistant ads in these countries or their is some kind of trade problem with the Governments. I don’t know..
acca
January 10th, 2008 at 2:23 pm
14I still can not belive. And I just targeted referrals first on few websites. And have too many refs that have to reach forst 100 in next few months.
Natalie
January 10th, 2008 at 4:23 pm
15Too many people were taking advantage of the old system with Google Adsence ads and making way too much money off of them.
They always stop people from making it too easy. I hate that!
Ben Cook
January 10th, 2008 at 4:29 pm
16Natalie, the thing is, whenever publishers make money, they are also making money for Google. The only way referrers get paid is if the new publishers make a certain amount of money in the first 180 days. I mean even if it were a 50% revenue split (which it isn’t) they’d still be breaking even on the deal. This just seems like they’re shooting themselves in the foot.
pops
January 10th, 2008 at 4:35 pm
17Seems like an opportunity for set up “fronts” for foreign webmasters. How hard can it be to make it look like you’re from the U.S.?
Ben Cook
January 10th, 2008 at 4:45 pm
18Pops, I’m guessing the tax info is the major issue to overcome.
Daniel
January 10th, 2008 at 5:24 pm
19I only introduced Adsense yesterday despite all the bad press it receives it seemed like the best option to me. Now i’m left wondering what the heck is going on?
I in the UK so no referrals from me.
Any ideas on alternative options?
Ben Cook
January 10th, 2008 at 5:28 pm
20Daniel, you can still use the adsense but you won’t be able to get paid for referring other publishers.
However, I did write a post about How to Find AdSense Alternatives for your Site. I hope it helps!
Mike Huang
January 11th, 2008 at 1:21 am
21Wow! This is my read of the day
Great blog you got running here!
-Mike
SEO Blog
January 11th, 2008 at 7:43 am
22As you said Ben, we can address as many reason as we like, but I doubt Google will ever address their decision (I’d be surprised if they do tho). But obviously there is a reason for doing that. In any case, they a uncovering a huge piece of their market to competitors, maybe it is time YPN opens world wide?
Simonne
January 11th, 2008 at 2:40 pm
23I see Google is just aligning with other online companies in making us feel like internet belongs to US. It stinks, but a private company can do whatever the owners choose. My country is so small that it will never have a voice, but I’m free to go live somewhere else if I want. I had only one Google referral so far, and I was waiting for him to make his first $100 bucks, but it seems I’ll never know if he made it or not. So, for me it’s not a big loss. It’s only the feeling of frustration and a strengthening of my conviction that democracies are not so much better than the communism I’ve lived in during my first 20 years of life. It’s always about who’s bigger and who has the bigger nuts out there. It makes me wanna go back to the stone age
The Eye Surgery Dude
January 14th, 2008 at 4:43 pm
24This is a strange move by the big “G”. I suppose there must have been some reason behind it. Maybe they were having a lot of problems with people trying to abuse the service. I have learned to never be surprized by what google does though. They do have a mind of there own.
Homeboy's Skiing Blog
January 14th, 2008 at 5:25 pm
25Whatever is going on with Google, one thing seems good. The pagerank of one of my blogs just jumped from 0 to 3. Problogger mentioned in post some days ago that Google is updating something which may affect pageranks. At least I am happy with this little improvement related to one of my blogs
Add a link to your blog
January 16th, 2008 at 3:09 pm
26Does not affect me, although my site where I promote referring visitors gets lots of traffic, the midset of my visitors are on ATV Trails and not Adsense. I have had links for a year and a few clicks and absolutely zero conversions……:(
Jacob
January 17th, 2008 at 12:34 pm
27I was happy with Google Adsense and Adwords. I regret to say that the decision taken by Google has made me change my mind. It was the referrals or the user’s promotion that helped Google gain market on this. All the users who referred Google spent a good amount of time putting up write on website and blogs explaining the Google Adsense system. I spent time in putting up blogs or websites and educating people. All the hard work every one has done is now Zero. I strongly protest against this. I am planning to shift from Google completely to a new PPC service like Yahoo or Bidvertiser. I do not see any point in sticking to Google because now I think they will start making more changes and you may never know what Google will come up with tomorrow. It is a Tight SLAP for all the webmasters who are not from North America, Latin America, and Japan.
It was the users who promoted Google, now Google thinks it can work without them.
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