The Million Dollar Homepage - Business Tactics review #1

The Million Dollar Homepage

Online business tactic that succeeded in no time to be specific in two years and the vision of this business tactics strategy was completed.

Vision

Alex Tew - The Million Dollar Homepage owner before the website was online had to think a way to raise money for his university education. And that is how the main vision raised. His idea was to make a webpage that sell a pixel based ads, for one pixel asking just a dollar. Idea itself is greater then it sounds profitable that you can imagine. Making a grid of 1000 x 1000 pixels it turns out to be a genius idea how to become a millionaire because 1000 x 1000 is one million pixels which makes all the income in one million dollars.
At the end total revenue:
US$ 1,037,100 (one million thirty seven thousand dollars)

Strategy

Simple as that 1 pixel equals 1$. The purchasers of these pixel blocks provided tiny images to be displayed on them, a URL to which the images were linked, and a slogan to be displayed when hovering a cursor over the link.

Pixels were sold for United States dollars rather than United Kingdom pounds because o few concerns you can read further. It is long proved United States has a larger online population than the United Kingdom. Basing his decision on this fact Tew believed more people would relate to the concept if the pixels were sold in United States currency. Back then in 2005, the pound was strong against the dollar. The exchange rate was £1 to approximately $1.80. He took in mind not only this, but also that cost per pixel may have been too expensive for many potential buyers and to not lose any costumer he thought it would be wiser to actually do it in USD currency.
Expenses
Tew's setup costs were €50, including the registration of the domain name and a basic web-hosting service.

Because individual pixels are too small to be seen easily, Tew's strategy were to sell advertisement in 100-pixel "blocks" measuring 10 × 10 pixels. Minimum price was thus $100.

Tactics

The site was initially marketed only through word of mouth. There also were some basic, yet strict rules on what can or can not, will or will not be published like no sexual, racism or crime content. Plus, he wrote a disclaimer taking of any responsibility from him about targeted advertisements even though he did a removing job of inappropriate ad picture or ad of external link containing forbidden content.

First sale and marketing

The first sale, three days after the site began operating, was to an online music website operated by a friend of Tew's. He bought 400 pixels in a 20 × 20 block. Even though marketing was only through word of mouth, after the site had made $1,000, a press release was sent out that was picked up by the BBC.

Post-press release success

Soon The Million Dollar Homepage became internet phenomenon and by the end of the month, The Million Dollar Homepage had received $250,000. To continue on Tew's webpage success it was ranked Number 3 on Alexa Internet's list of "Movers and Shakers".

Next article about "Google AdSense basic strategy to quit daily job".