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Why You Should Link to Your Competitors - A Lesson from Yahoo

 

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SportsmanshipIn business school, you're not taught to link to your competitors (or so I'm told). Why would you? After all, you want your website visitors to stay on your website, not go right into the hands of your competitors. And yet, that's exactly what Yahoo did at its start.

Yahoo, at its core, was a great directory of reputable links. When it came to users searching for information, though, Yahoo's results weren't complete. You couldn't find the "needle in the haystack," as Yahoo early employee Tim Brady describes in Founders at Work. Did Yahoo just leave it at that? No. At the end of a search results page, they included links to Internet company (and competitor) Excite - more specifically, a pre-queried page on Excite so that the user had just one click to view more results in case the original Yahoo search did not have the result they were looking for.

It's a pretty remarkable thing to do. Why did they do it? For the user. It not only signaled to the user that they were the focus, what mattered, but also taught the user that Yahoo was THE site to go for a complete set of results - first the results from Yahoo's reputable directory, and then all the rest from links to (yes, Yahoo's competitor's) additional results.

What can marketers learn from this? Become THE go-to resource in your industry by linking to others' resources, including, yes, your competitors'. This could be in the form of:

  • Sharing interesting blog articles written by your competitors
  • Writing responses to a competitor's blog article (and not simply arguing with their point of view)
  • Allowing your competitors to write guest posts for your blog
  • Summarize the most important news and best articles in your industry, including those written by your competitors

The benefits?

  • You will get known as the one best expert and thought leader in your industry. With your comprehensive resources, people will start coming to you as the one-stop resource for anything to do with your industry.
  • You build a brand around helping solve your users' problems. You prove yourself to be unbiased - after all, you're linking to your competitors when you think it's in the best interest of your users. Your users will trust you and appreciate you for it.
  • You give your competitors a reason to promote you - by linking to them or publishing a guest blog post by them.
  • You give your users a reason to promote you. If you focus on delivering the best resources, best content, and being more balanced in your content, you give your users a reason to recommend you and become a team of the best marketers for your company.

Now go out and start connecting with and sharing the best industry content with your network!

Have you had success with this approach? Please share your experiences in the comments!

Flickr photo by versageek

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Posted by Ellie Mirman on Mon, Nov 08, 2010 @ 02:00 PM

COMMENTS

It's funny -- we follow this model in our personal lives (linking to other blogs, suggesting potential connections to existing friends, promoting bands), but in the professional sphere, "communication" tends to take on a whole new agenda. Thanks for helping to remind us: we're all people, at heart, & the mask of an "Inc." or "LLC" shouldn't change that fact. Bravo, Fellow Human.

posted on Monday, November 08, 2010 at 2:07 PM by Meredi Wagner-Hoehn


Interesting, IF you are in the 'knowledge' business, but what if you make real 'stuff'- should you send your potential clients to your competitors then?

posted on Monday, November 08, 2010 at 4:13 PM by tom breen


Hi Tom, If you make real stuff is it really good? If it's not really, don't link to your competitors. Your customers will go there anyway. 
 
 
 
If you do have a better product or offering make sure it's clear to your customers. Link to your competitors - it shows honesty & transparency.

posted on Monday, November 08, 2010 at 4:23 PM by Warwick Carter


I like it! I like it! I like it!

posted on Monday, November 08, 2010 at 5:02 PM by Jim Taylor


Gee...you folks ever see a Mcdonald's next to a Burger King....sorry it is Monday.

posted on Monday, November 08, 2010 at 5:27 PM by Steen Christensen


I think this strategy worked for Yahoo. I'm not sure that this is a must-have strategy for all other businesses. Does HubSpot follow this advice? Are you linking to your competitors' websites?

posted on Monday, November 08, 2010 at 5:55 PM by Mark Lennon


This is a tough one. I listen with glee every morning at the Constant Contact commercials on TV and the radio and know they are doing the heavy lifting for me but link to them? Not sure about that one and I know I do have a better product. Need to noodle that for awhile. 
 

posted on Monday, November 08, 2010 at 6:51 PM by Paula Lumsden Haggerty


The best take away for me was the part about re-posting quality content from our competitors. Such great ideas! 
 
Kristen Sonsma 
Chief Business Development Officer 
www.bsquareclothing.com 
Be sure to 'Like' us atwww.facebook.com/bsquareclothing

posted on Monday, November 08, 2010 at 11:18 PM by Kristen Sonsma


Took us a while to figure out, but we began linking our website to every relevant location we could find, including competitors sites through their comments section. We were careful not to push the envelop too much so that it became spammy, but traffic doubled to our site the first day!

posted on Tuesday, November 09, 2010 at 1:36 AM by Downtown Dan


Thanks for some thought provoking ideas Ellie. Whilst this may present a problem for the manufacturers of product; in the tourist industry where no one owns the market, there are many great ways of linking to your competitors in order to establish yourself as an authority, but to build a good relationship with your competitor at the same time.

posted on Tuesday, November 09, 2010 at 5:04 AM by Capetown Holidays


Yahoo did the great job by adapting this strategy, and I think many business will get help from this.

posted on Tuesday, November 09, 2010 at 6:29 AM by Rahul


I like this idea. It takes a very secure company to be able to link to the competition. Clients want to work with thought leaders and organizations that know they are not the only solution. After a bit of research, hopefully they conclude you are their solution.

posted on Tuesday, November 09, 2010 at 6:58 AM by Tom Matte


Yes m'am! That's the stuff, that's the point! That's the meaning of the internet and inbound marketing.We are achieving a cooperative capitalism, in which competition becomes irrelevant.

posted on Tuesday, November 09, 2010 at 11:21 AM by Mary H. Ruth


Reading "The Social Media Bible" & they mention "coopertition" -- a combo of cooperation & competition. It argues to collaborate with competitors to increase your credibility (you want what's best for your customers, & if a competitor can offer valuable advice, they should have access to it), while drawing the line when it's detrimental to your sales. 
 
 
 
"Determine where you can play together and where you can't," as Safko & Brake say. 
 

posted on Tuesday, November 09, 2010 at 12:46 PM by Meredi Wagner-Hoehn


Another early example of this: Kris Kringle sending Macy's shoppers to Gimball's in "Miracle on 34th Street." Worked for Macy's back then.. trust was built. We lost our way.

posted on Tuesday, November 09, 2010 at 1:08 PM by Gregg Makuch


Linking to a competitor also shows your prospects that you are up to speed on what your competitors are doing. Acknowledge them so you can address them and move on with your sales conversation (when it gets to that point).  
 
You're saving your potential client time by gathering resources and that already puts a check mark in your plus column.

posted on Tuesday, November 09, 2010 at 2:43 PM by Andrea


I didn't know that about Yahoo but I really like your thesis. I like that idea that we profit best from trying to offer good value - which includes offering information about our competitors while also alleviating the fear of doing so at the same time. 
If we're offering good value we don't need to rely on our clients being ignorant of alternatives. 
...It also appeals to the aging hippy in me :) 
Thanks for the article.

posted on Tuesday, November 09, 2010 at 3:02 PM by hank


Interesting...in my experience people build their competition up to be vicious figments of their imagination, yet in most cases when I've met my competition, I've been pleasantly surprised. You typically find out you have quite a bit in common. You're in the same industry, dealing with the same issues, and you can almost commiserate.  
 
Shall we have a national hug your competition day? 
 
Ron Davis 
<a>www.virtualappoint.com<a> 

posted on Tuesday, November 09, 2010 at 6:39 PM by Ron Davis


Thanks, everyone, for all the great comments! 
 
@Mark - We do try to share as much as possible. It turns out that curated content, pulling from the best of the best (who may be us or other thought leaders) in our industry serves quite well to draw more people to our company! 
 
@Paula - I really think this approach helps position you as a trustworthy resource. Honestly no one thinks, or believes, that one company will be 100% fantastic while their competitors are 100% terrible. Sharing others' content, for example, shows that you are aware of your industry and can cull the most important info from it for your audience.

posted on Tuesday, November 09, 2010 at 9:27 PM by Ellie Mirman


Ellie, I get your intent but even if linking to competitors makes a case for building a trustworthy resource, it would fall last on list for the reasons others have cited above. There are other ways to build trust and why take this dicey one. Yahoo did it and probably was successful may be because they were the best go-to resource of their kind. It makes sense to provide a link to Excite as an “ancillary” service to their users. Definitely makes a good case this context. Besides, most parameters being equal, does it make sense for a business to link/vote for another business? Don’t think so esp. where the visitor in question could be a serious buyer.

posted on Wednesday, November 10, 2010 at 4:15 AM by Mohit Vashisht


Great article! Really speaks to the concept of "coopertition" as Mary and Meredi noted. Networking and adding value positively, whether partner or competitor is more rewarding than the dirt slinging methods politicians use. There is abundance out there for all of us; act authentically, add value, and attract your ideal customers.

posted on Wednesday, November 10, 2010 at 10:25 AM by Sue Koch


You are right that business schools do not teach or recommend connecting to your competitors. They teach the competition is a necessary evil to the business system but not someone you should work with or help. 
 
I ignored that premise and founded my own SMM business on the principals of sharing ideas and knowledge regardless of where it comes from. My #1 priority is my clients not my ego 
 
So kudos and thank you on a well written and useful post. 

posted on Wednesday, November 10, 2010 at 10:32 AM by Ed Jones


Please share your links where you link to your competitors' websites or blogs, etc.  
 
 
 
Thank you.

posted on Wednesday, November 10, 2010 at 11:51 AM by Alex


Nice reminder. Oddly, just yesterday afternoon I gave a client this exact advice - then when I read this post this morning, combined it with my thinking of yesterday and I suddenly saw a few other things in a new light.

posted on Wednesday, November 10, 2010 at 3:24 PM by Chris Edwards


@Mohit, I think you're not necessarily giving a "vote" for the other business just by sharing their information. It's all about providing the best resource to your customer, regardless of source.

posted on Wednesday, November 10, 2010 at 3:34 PM by Ellie Mirman


@Sue - "coopertition" is an interesting concept! I was just speaking at a conference for insurance agents, all competitors of each other, and it was amazing to see them come together in the interest of growing the industry as a whole. There is certainly a way for competitors to "play nice" in their both best interest.

posted on Wednesday, November 10, 2010 at 3:37 PM by Ellie Mirman


Not feeling this. Benefit 1, 2, and 4 can be done without acknowledging your competitors.

posted on Wednesday, November 10, 2010 at 7:35 PM by Richard Rezek


This is not a good recommendation for established brands. (Outside of CPG examples, just imagine a politician linking to a competitor - it leads to confusion and can alienate your core.) There are much better ways to establish credibility within your community or even if you are trying to attract new followers.

posted on Thursday, November 11, 2010 at 1:16 AM by Nate


We liked the comment about giving your competitors a reason to promote you - by linking to them or publishing a guest blog post by them. The reverse is also true by getting competitors to promote you while helping themselves to your carefully written article or blog posting as is the case a few days ago when we created a post about how "Google Place Search Changes How Local Searches are Displayed" which was then published by Site Pro News and simultaneously republished and blogged by many others including our competitors! 
So it can work both ways - ultimately we both benefit - I'll help you and you'll help me or as we say in BNI "givers get gains". 
Peter Bowen 
Managing Director 
First One On 
see us on <a href=http://twitter.com/first_one_on>Twitter @first_one_on 

posted on Thursday, November 11, 2010 at 6:16 AM by Peter Bowen


To Nate: I beg you, study the issue a little more. A politician, if really and truly dedicated to the good of the constituency,will certainly link to a competitor if that serves his/her public best - and thereby gain the deeper respect of followers.  
It's a new thought, counter-intuitive, takes real bravery to understand and adopt. Most will laugh at us, but they will be the losers in time. 
The world's too big (and too small). We must learn to be cooperative, and end divisiveness.

posted on Thursday, November 11, 2010 at 7:09 AM by Mary H. Ruth


Hi Ellie, Very good points here. Also, when you know WHO your target market is and your value in the market place, no one can serve your clients the way you can. In other words, I don't believe in "competition" like most people do. Know who you serve best and leave the rest to the "competition".

posted on Thursday, November 11, 2010 at 8:59 AM by Dali Burgado


Didn't any one every watch Miracle on 42nd St? Where Santa was sending people to Gimball's? Macy's competitor... and Macy's got the credit as working for the customer? It's an old idea, but one we have forgotten.

posted on Thursday, November 11, 2010 at 11:55 AM by Dee


Nice post. Learning and studying competitors is a good idea to challenge us, in a way that we show and prove to others that we do our best.

posted on Thursday, November 11, 2010 at 7:34 PM by Sydney @ InteliWise


Great points made. Reminds me of a time when I was in a locally-owned coffee shop. A business man came in and asked if they had a box of coffee he could bring to his business meeting. The owner apologized that he did not have that but that the Starbucks across the street did and proceeded to give the business man directions. The business man thanked the owner, then proceeded to buy every pastry in the shop for his meeting before heading over to Starbucks for the coffee. Lesson learned.

posted on Sunday, November 14, 2010 at 11:41 AM by Andrea


I would agree to associate with 'competitors' that are not directly in your market space. I cannot satisfy every requirement, and have no wish to do so. Being able to meet clients requirements even indirectly is a good thing. 
Marcelle

posted on Tuesday, November 30, 2010 at 1:20 AM by Marcelle Paisley


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