Monday, April 02, 2007

Microsoft Ready to Buy Search End Users

Yesterday I wrote about the dangers of frequent buyer programs. A story in the New York Times shows that Microsoft has embraced the philosophy of "If you can't beat 'em, try bribing customers" - or, as the clever headline read, "If at First You Don't Succeed, Write a Check."

Because Google's share of the search market is only expanding, as is its influence on people and its cash flow, Microsoft is apparently paying large companies anywhere from $2 to $10 per user annually in credits for the vendor's products and services. As the article (which did acknowledge John Battelle's Searchblog as the source that originally breaking the story) puts it:

“We’re the underdogs in this business,” Mr. Sohn acknowledged. Breaking users of their inclination to use what he called “the incumbent” — he would not use the “G” word if he could help it — requires a willingness to depart from standard practice, and to weather sniping from outside critics. “There’s always controversy when anyone tries something new,” he said.

I hate to break it to Mr. Sohn, but there's nothing new in trying to pay companies to use your services. The problem is that you've set the precedent and the chance of ever not paying for their business is pretty slim. And while Microsoft does that, Google comes out with a free ad servicing business that will compete with DoubleClick - just as Microsoft considers buying the company. Quick, better buy a few more customers.

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