Does Yahoo!’s Plan Make Sense?

[This item was originally posted to The Media Drop]

Yahoo! announced this week that it would be adding a cost structure and cost-per-click setup for companies that pay to be indexed in the site’s search results. By paying into this system, you would be able to be re-indexed more regularly by the system, and would, in turn, “move up” in the rankings because of you relevance.

Has this turned Yahoo! into a pay for play getup? Some people think so, and it seems that small businesses aren’t happy.

But the last paragraph is the tale of the tape, for me at least… Piper Jaffray analyst Safa Rashtchy says that while Yahoo! would lose users, it could mean 100 million a year in revenues. So again, the question is – what’s more important – loyalty to your customers or loyalty to the dollar? When you’re a publicly held company, the latter is the primary focus, as making money for shareholders is the goal. But at risk of what? This only makes Yahoo!’s results more “relevant” in the eye of the beholder. If you choose not to pay, you in turn become “not relevant”, which, in my opinion, invalidates their search results as on par with a high quality result engine.

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