Learn from the Gold Rush: SHUT UP!
In 1848 a foreman working in a lumber mill noticed something strange as he was working. He mentioned this to his boss and the two began to investigate a bit further. Before long it became obvious that the foreman had discovered something that could make both men incredibly wealthy. Knowing that if their secret got out, they’d be ruined, the men attempted to keep the discovery quiet. Unfortunately, rumors began to fly and within two months of the groundbreaking discovery, it appeared in a local paper. News spread much slower in those days but just a few more months after that, the discovery made it’s way into a national paper and then even into a Presidential speech!
The discovery, if you haven’t figured it out from the title, was gold. The foreman’s name was James Marshall and his boss’ name was John Sutter. As I said, when Marshall discovered the valuable metal, Sutter tried to keep a lid on it. He knew what would happen if word got out and just as he had feared, by the time the gold rush of 1849 was over, nearly 300,000 people had descended on California in search of riches.
You might think Sutter wouldn’t care. After all gold had just been discovered on his property and he had a significant head start on the rest of the prospectors. You might think Sutter would have been rich beyond his wildest dreams. Unfortunately, you’d be wrong. His workers abandoned their jobs to begin mining and before long squatters had taken over large chunks of his land. As if that weren’t enough, Sutter’s crops were destroyed or stolen as were his livestock. In short, he was ruined.
While I may have bored you to death with that little history lesson, the story perfectly illustrates the point I wanted to make. Lately I’ve seen a lot of people writing about different discoveries they’ve made that could be very useful. Maybe it’s a new source of traffic, a new place to get quality links, a new way to game a system, whatever. The point is they’ve discovered something that’s going to help their blog. And what’s the first thing they do? Why they post about it of course.
For crying out loud people, if you find something that is going to be a powerful tool for you or will help you make more money, SHUT UP! Sutter tried his best to keep the discovery of gold from getting out to the public. But despite his best efforts, it was national news before the year was out and the opportunity was gone.
In our online world gold rushes happen at incredible speed. A simple blog post can bring thousands of people trying to exploit whatever it is you’ve just discovered. I understand the whole community aspect of blogging, I really do. When you find something it’s natural to want to tell someone. But the instant you let that information out, you’re killing off whatever opportunity or benefit you’ve just found. What’s worse, you’re not just killing the opportunity for yourself, you’re also ruining it for everyone else, including anyone that had discovered it before you but had the foresight to keep it to themselves.
John Sutter died a poor man having never benefited from the discover of gold that made many others rich. Learn from his experiences, and the next time you find the webmaster’s equivalent of gold, please for all of our sakes, shut up about it.
Your general premise here is good and very true. But what you’re missing is the fact that when these bloggers post about this “gold” they’ve found what they are generally showing is just fools gold in an attempt to generate traffic. Which is usually the true motivation in sharing with the blogging community anyway.
Well…I can see your point. People are probably a little too open in talking about their ideas for internet millions. Maybe you’re talking from a specific example here.
But tech blogging isn’t the same thing as finding gold. It’s become an online resume, a place to show how much you know and get your name out, as well as a place to help people. “Finding gold” can come in two forms in the web world: having an idea that can make money and having an idea that can make you look good. It’s important to be able to tell between the two.
Mostly, I just wanted to comment on the “200 Jack Asses” headline in the paper. I don’t know what it’s about, but it’s fun to imagine.
Or did Sutter’s misfortunes happen because he tried to control the flow of information…What are some examples that you think people should keep quiet about? By promoting Entrecard – one of the latest things to be heavily hyped across the blogosphere – individuals are doing themselves a favour. More blogs to drop your cards on, more blogs in your niche to purchase “free” ad space from and more people coming up with interesting ways to use that system, such as EC credits for contests.
Perhaps you were trying to incite an argumentative discussion? Either way, beyond NDAs for specific intellectual property, I believe there is more benefit for the individual and the world at large by practicing creative philanthropy.
With tongue firmly in cheek in case you don’t get the reference, if you truly believe the position you posted about, I suggest you go and stick your finger in a dyke.
Ben….no offense but horrible, horrible advice.
Two words…..Affiliate Marketing.
@ Jamie O, no Sutter lost it all because the word got out and the area was overrun with prospectors.
@ BlogEntrepreneur, I’m talking about people that post about where to get a great non nofollowed link or a system to make tons from Adsense. If the idea would suffer from thousands of people jumping on it and/or abusing it, then you shouldn’t be sharing it with your audience.
Good topic. A bit controversial. Even more misunderstood but good. As you know, I’m pretty new at this. But when I read an Adsense Guru say “I learned this secret from one of the weathliest blah blah, and now I’m sharing it with you” I think to myself “It was probebly a secret on purpose.
These systems, like Adsense, aren’t dumb. They don’t want to give away too much of their money. They don’t want you figuring out ways of to get too much of it. If they find out there is a hole in the system that others are exploiting they will close up that hole.
Dude, if people shut up, how would I get all the “insider” stuff? 😆 You know, people should disclose it AFTER they’ve fully utilized the opportunity and it’s going away anyways…
With all the pressure on bloggers to constantly produce good content, sometimes bloggers even resort to giving out their secrets…
Wow. This just is not a good idea. For one, people read your blog and other blogs to find new ideas. You’re basically telling everyone reading your blog that you are not putting the good stuff out, just the stuff that is already known to everyone.
The problem with secrets is that a secret known by two is not a secret. Your effort should be towards sharing information, and discussing how everyone can capitalize on it. That’s what makes open source and research work. Closing the doors and trying to control the information does not work.
@ DJ, well for this blog that doesn’t really work as I’ve been documenting all the steps I take on my journey towards my goal of a full time income. However, on other blogs that I run you can bet I don’t give away all the things that work for me.
Your argument assumes that everyone can capitalize on something. The fact is, that’s not the way it works. People abuse the systems until they get shut down.
For example, Search Engine Land recently wrote a post about the fact that a certain prominent site allowed people to place live nofollow free links. In just a couple of hours the site was over run with people trying to get free links.
What good does that do anyone? It causes problems for the site being talked about, and it ruins the opportunity for everyone. Explain to me why sharing that kind of information is a good thing?
@ Ruchir, exactly. Make sure you’ve gotten use out of it before you post and explain your methods to everyone.
One of the greatest poker players of all time, Doyle Brunson, wrote a book called Super System. He basically explained exactly how he played and won at poker. Sure the book made him millions but it also cost him millions because now everyone knows how to play like him and it makes it that much harder for everyone.
Yikies for the poor Sutter but kudos to you for combining the story into a lesson in such a great way. In fact no one really would be giving gold informations that give great results without something in return, and most of them do it when they have taken the “big piece” of the gold already.
So sharing the “gold that has remained” with others turns into another gold for him (subscribers, more traffic, link bait etc).
But the meaning of the article is just great.
Hi,
You are really making sense to me, and you are completely right, but you should keep few things in your mind, sometimes people get benefit from speaking it out loud, sometimes it is only kind of ads and they may make even more money about it in such ways, and not everything you hear is true,
Now the last thing is: you brought up to my mind this question, do you think if I find something and it brings money for me, then when I don’t tell others about it (specially that many people need to work or to make money for living) then I will be selfish? in another way, what is the right thing? to teach people about it or not?
Thank you very much,
Regards.
Ben I understand you completely. Sometimes I am reluctant to give out blog tips because I am worried that people might benefit from me too much. I still have a couple of those tips hidden though. Thing is, I’m not even big, so its not worth giving away.
The thing, is, you have to make a trade-off. As a new blog, do you want lots of readers quickly and make a name for yourself, or do you want to just keep quiet and take FOREVER to build subscribers. Sometimes the cheap thrills are too much for people. I say that if you can give away the information, try and make it conditional. Such as ‘you sign up for my RSS or go away’ type thing.
@ Seoblog, exactly! Another example from way back was this program that you could buy that would generate HUGE websites based off keywords. It would automatically generate the content and for a while it worked really well for things like adsense etc.
Then it got really popular and Google caught on and banned all the sites that used it. After that, people began to sell it as part of a system saying they had made X amount of money off it. And in fact , they had, but the truth was they had already “mined” it so hard, that there were only scraps left for those buying the system.
Not all ideas or new developments will be like this, but as I said before, if the opportunity would disappear, or you would suffer by having more competition, it probably isn’t in your best interest to share the info. You do have to weigh it against the attention and traffic you could receive from exposing it but lately it seems like people aren’t thinking that far.
Dear Ben and Seo, I agree with you, but remember that whatever you hide then people shall eventually figure it out, even if you hide your secret in a box and bury it in your garden, People have the nature to think and figure things out,
Again, if someone would directly ask you about something (he or she doesn’t know it is your secret), what would you do? LIE or be SELFISH or be RUDE? the choices are really not well, and off course you have the other choice which is to tell them!
Anyway, it is a wisdom to do things in secret.
@ Music Site…
You don’t have to lie or be rude or be selfish just to tell someone that there are some trade secrets that are not common knowledge.
For instance is Coca Cola being rude, or selfish with not giving up the secret ingredients?
Ben, I agree with you in that most really good ideas will lose most of their effectiveness if everyone knows about them.
Some of us are constantly trying new things and seeing what works and what doesn’t, and if you stumble on something that really takes off, you have to size it up and see if it’s going to hurt you in the long run if everyone starts using the technique.
That’s a sad story Ben, and a real shame. But, you know, sometimes you can make more money by showing others how to dig for the gold than you can by digging for it yourself.
But, I know what you mean – often people give great info away for free. And I suppose if lots of other people start doing the same thing, it could spoil things.
If there’s any doubt about whether you should post your top-secret money-making discovery, just email it to me and I’ll help you decide.
He could have done a whole lot better if he had gotten all of his men together and included them in on the deal. He also should have handed out guns and told his men to shoot any poachers coming to steal their gold. Not “his” gold but their gold.
@pops you make me laugh!
As for the post. I think of many of these ‘gold’ rush mentalities like mini pyramid schemes that offer cash and additional backlinks that help with ad sales. If I were to make a million dollar idea online I would definately keep it to myself. I have watched as ‘trusted’ people took an idea and exploited it for their own profit, leaving me with nothing.
I think that ideas like this do not pertain to blogs in this niche. Blogs about making money online are supposed to be about sharing information. The information I post on my blog in this niche (not the one this links to) really just talks to different ways of making money online. If I really found a money maker. It would be all mine. Is that wrong?
Well, I guess, some discoveries need to be shared immediately – as soon as they are discovered. Be it in science, medicine, or even blogging. Simply because some of these discoveries can put in order the chaos that is out there or replace something old or ineffecient. But these discoveries have to be shared with great preparation, etc. And yes, I agree, that some of them need not be shared or released. Thanks!
Great article Ben, i agree with you. There’s things to share and there’s things better kept to oneself until you’ve exchausted or at least reaped the benefit you’re looking for … then you can disseminate to the masses thus ending up getting some loyalty / benfit.
Nice work on the RSS numbers too, a nice rapid boost the last month or so, here comes 1000!
Ben, if there’s one lesson to learn from the Sutter story that is that news will out. You can try and keep a lid on it, but sooner than later everyone will know, so you might as well be the one who gets the scoop. If you find something worth using that no one else has mentioned yet, tell the world, shout it from the roof tops, the boost to your blog will and cred will be much greater than the short time you will have hacking away at the motherlode before someone else blows the whistle.
Ben,
I’ve been a frequent reader for the last month. I don’t know you personally, but I think very highly of you for providing valuable information on blogging.
Here is my take on your topic. You’re thinking in a mindeset of scarcity and not of a mindset of abundance. How can any man or woman hold onto something that isn’t theirs anyway? Whether that be gold or a service or idea?
I believe operating in this mindset can be harmful. Theives are an extreme example of an outwardly scarce mindset.
There are really two issues here. The first is general information and then there are trade secrets.
General information that you come across you should share and help others. If you have a way of doing things, good business, general bits that can be helpful to others in business or in your business, then share that information. i.e. maybe you showed a friend all about a new method to cashing in online.
But, that doesn’t mean you take him right to the phrase and exact points that are making you money. Don’t throw out your profit because you don’t want to be rude. It might make you a good friend or a hell of a nice guy but in business it makes you a fool, plain and simple.
You do not share those pieces that make you above and beyond your competitors. That’s why we have patents and patent laws. It’s just good business.
I’ll be “mean” or “rude” over a fool any day.
@Eric
I completely 100 percent agree with you statement. I couldn’t have said it better myself
Cheers!
Scott
@ Eric, I agree I think the way we’re looking at things is the fundamental difference here. You say it’s an abundance but I definitely think there are many things that are scarce.
As I’ve said before, my background is in SEO. While I write (rarely these days) for my SEO blog, I don’t share the keywords that I am targeting. I don’t say hey, this phrase “xyz” was really easy to rank for and brings me tons of traffic. Because if I did, others would jump in and I would either lose my rankings or have to fight to defend them.
Places you can get powerful quality links are few and far between. If you shout it to the world, and you attract a horde of spammers, you’ve just removed a valuable links source.
That’s the kind of thing I’m talking about here. And, by the way, I’m loving this discussion.
OMG Ben, you’ve let another big secret outta the bag!
Okay, here’s what I really think of your advice….it’s dangerous if too broadly applied.
Look at some of the top blogs out there, DoshDosh, ProBlogger, etc. They got to where they are by openly sharing great ideas. I can get more great “internet secrets” from their blogs in 10 minutes than I can searching Google for an hour.
BUT, I am sure they don’t tell the whole story. There are some things that would be crazy to share. Don’t share if: 1) sharing would seriously dilute the resources effectiveness, 2) if gives away personal details of your business that could be harmful, or 3) it would create competition for your own success. Other than that…SHARE FREELY!
@ Jim, I think you probably put it better than I did in the post. I can definitely agree with those three qualifications.
@ Eric, Scott, David and others, if I had clarified it as Jim did in the comment above, would that change your stance on the issue?
I would agree with Jim’s point, “if gives away personal details of your business that could be harmful” but the other two points, no.
How has anyone who has had any success gotten to the point they have if it wasn’t from the help of someone else? If someone has provided you with information, why
There really aren’t any secrets that can’t be found or shared from someone.
I believe that when you hold back you are really standing in your own way of receiving benefit of something greater.
@ben
Yeah. Jim definitely worded it about as best as possible. I mean, I use your site as a point of reference for a lot of things and I wouldn’t be commenting here now if you hadn’t shared great information that has helped me earn money.
And I think this post proves something else as well. It proves if you have a well thought out or discussion starting blog post, your Less is More theory will work out
And you can spend more time engaging in the discussion
cheers
scott
@Eric,
Please explain to me how you view patents, and if you think they are “right” or “wrong”
Again, I bring up the “secret ingredients” of coca cola…. should they be obligated to share that?
@ Tim,
Having a personal involvement in the invention business, I can say patents are intellectual properties. Which shouldn’t be disclosed. However, that beyond the context of what we are discussing here.
Ben said: “Lately I’ve seen a lot of people writing about different discoveries they’ve made that could be very useful. Maybe it’s a new source of traffic, a new place to get quality links, a new way to game a system, whatever. The point is they’ve discovered something that’s going to help their blog.”
This is not intellectual property. A source of traffic and links? This is like discovering a new place to eat and keeping it to yourself. Do you think the source of this newly found informaton published this information on the web exclusively for one person to have? The whole idea being the internet was to share information with others.
Eric, using your example, I would say this is like telling everyone in town that a good place to eat has great burgers and then everyone in the town goes to that place to eat. The place gets crowded, traffic backs up outside, and they run out of food. The overcrowding then causes the fire marshal to shut the place down. Now no one gets any food. See what I’m sayin?
Hmm I don’t buy this whole argument at all. In business there should be room for everybody. Sure there might be little specifics that give you the edge over the competition but in general I think that if your income sources are dependent on a secret that you have discovered then you are treading on thin ice!
Fundamentals win out in any industry. Provide value, receive compensation. That’s it. No secrets required.
@ben
Your last comment brings up a good argument. This is better than the political debates.
Obama who? Eric and Ben in 08
cheers
scott
@ Tim, you are right here, Coca Cola has the right to keep their secret and any other companies or individuals, it is just that people would keep attacking you with their words and make you look bad infront of others or at least keep watching you and wish to ruin you.
@ Music,
Do you really look poorly upon Coca Cola for not sharing it’s secret? Seriously? I have never heard of that. I am in business, have been running a company now for over 10 years. I have never, once, ever been mad at a competitor or even remotely ticked that they came across something that worked well for them and they chose to keep it under wraps. I would also, not worry about my competition worrying about weather or not I looked foolish in their eyes. If I’m out in front, I expect someone to be gunning for me, that’s the way it is.
Look, at the end of the day it’s business. And Business pays the bills. I got bills to pay, so if I gotta look foolish to you, but I’m providing a quality good to my customers…. well, I can live with that.
@ Tim,
I understand that and I completely agree with you, you are right, it is just that may be I am more emotional and I hate that people get upset of me, I know they might be using me to get what they want to know, my family always told me that I should be more careful but I never was, but I think as I grow up then I get better at it, life teach a lot, sometimes some people need a strong hit on their head to learn and I guess I am one of those,
Thank you, you really helped me in knowing that people should be more aware about their work and they have to keep their secrets when they have to and specially if it affects their work, I just needed to hear someone do it, cause everybody I met in my life would say he doesn’t hide anything and he or she are open and that I am fool or silly and selfish.
Regards.
Bahh
I tell my readers everything. Nothing is held back. I have pissed people off, I have made people happy and it has made me some money.
I give away my gold because too many people are making money off of crap. Yeah off of crap. Take for instant the $3000 / year piece of crap from the InternetMarketingNinjas.
In fact I will give away some gold right now…
Yeah it breaks with tradition but tradition sucks. Living in the past will leave you in the dust. Dare to be different and you will stand out from the crowd!
Personally, I don’t care what people think of me. If I entertain while providing some information then good for me. If it boosts my traffic and puts some money in my pocket, then good for me and my readers.
If I am earning money then I must be doing something right.
The Mad Ape
PS. Here is a ‘form’ reply to everyone that does not agree with me:
Dear
Piss off…I don’t care!
Pingback: Keep Your Dirty Little Secrets To Yourself! | Caroline Middlebrook
Here’s another good example of what I’m talking about.
http://www.shoemoney.com/2008/01/29/gaming-google-adwords-with-google-redirects/
Shoemoney’s site is read by thousands and you can bet a large chunk are going to go out and abuse this gap in Google AdWords’ system. Before long Google will catch on, or come across the post, and that exploit will be closed.
If you found something like this, why in the world would you want to share it with everyone and lose the benefits it can offer? I just don’t get it.
Haha, that was a brilliant post. I can’t believe I just found it.