I’ve been thinking… (Yes, it sometimes happens.)
See those adds that appear on the right of the “home” page? If I understand well how it works, every time you click on one of those, Mike Paler gets a few cents, right? (Or maybe it’s only a few cents for 10 clicks or 100 clicks or whatever, but the basic idea is “the more clicks, the more Mike will get”, right?)
Now, if you are the one running the ad, I suppose that every time someone clicks on your ad you have to pay a few cents to Google, who, in turn, pays back a tiny part of this to Mike Paler, right?
So, basically, someone pays (the guy running the ad) and someone gets paid (Mike Paler), right?
Of course, the guy running the ad thinks that the more clicks he gets, the more potential customers he will get. That’s why he’s willing to pay for that because he thinks that his potential income will be far superior to the money invested in his ad.
Now, imagine that my worst business competitor would run an ad on Swaylock’s. Since I am very wicked minded (insert sardonic laughter here), I would do this: every time I connect to Sway’s, I would systematically click on my "enemy"s ad. Of course, I will never buy anything from him, so what I’m doing is making him waste money. At the same time, Mike gets paid for that so it’s not really a bad act, is it?
Now, imagine that some far away eastern business competitor would run an ad on Swaylock’s…