The Pixelotto Experiment

This topic seems to be stirring up a lot of emotion on a couple forums I frequent. Pixelotto is the successor to the Million Dollar Homepage, the “pixel advertising” success of Alex Tew which attracted huge media attention and over a million dollars in advertising sales. The idea is simple - the site consists mainly of a large grid image which advertisers pay to add their graphics to. The cost of the ad is set by how many pixels the image will occupy on the grid.

Knowing that the original Million Dollar Homepage received very high volumes of traffic as a result of the media attention and word-of-mouth around its success, and that Pixelotto had taken over $100,000 in sales during its first week, I went ahead and purchased a block of my own. I made the minimum purchase of $200 and chose the location on the grid I thought most likely to result in clicks (just off center from the portion of the page visible immediately upon loading, and using a neon green color to attract attention).

For most companies buying an ad on a site like this would be throwing away money. There is only value as long as the site receives high traffic, which would be a few months at best, and most of the clicks would be the result of curious advertisers or contest participants not interested in the actual sites being advertised.

However, this site reaches one of my target markets quite well - the new webmaster, specifically the new webmaster that can’t afford the $200 ad buy for this site. They find the site through blogs, forums and media, visit it, click some of the ads, want to buy one for themselves but can’t justify the spend on their fledgling sites that haven’t earned significant income. If they happen to click my ad, however, I offer website advertising starting at $1.95, a much easier price to handle.

Here are some stats to show the recent click and sale counts resulting from the Pixelotto ad, as tracked by AdWatcher:

Pixelotto Sale Stats

I fully expect a positive ROI on this campaign. A handful of medium size orders will cover the immediate cost of the ad and some percentage may even join my growing group of long-term repeat customers.

So, given I’m making actual sales from this ad, why all the negative sentiment towards Pixelotto on public forums?

  • Alex claimed the first Million Dollar Homepage was an effort to raise money to pay for his college education. After the site became a success, he dropped out of college claiming there was nothing he could learn.
  • MDH spawned thousands of copycats that use less than ethical measures to attract advertisers (such as filling part of their grid with fake ads to appear popular), without having the actual traffic base to bring value to their advertisers.
  • The feeling that Alex is undeserving of the money, especially at twice the cost of the original site without the college fund excuse as before.

I think Alex will come to regret dropping out of college over a single successful website without a sustainable business model. As it appears Pixelotto ad sales have dropped off less than 10% towards the target amount, he may soon find that building these sites is not a profession after all. Regardless, I’ll get what I can out of it while the hype lasts.

Note: Statistics screenshot last updated 1/22/2007

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1 Trackbacks to “The Pixelotto Experiment”

  1. Trackback from Dan Grossman : Pixelotto Update on May 9th, 2007 at 2:22 am:

    […] The Pixelotto Experiment was one of the most popular entries on this blog for several weeks reflecting the hype surrounding the site’s launch. Tew’s million dollar homepage copy made online headlines in December, but never gained the media attention the original site saw. By mid-January, sales of the pixel ads had almost completely stopped, and worse even, existing ads began to disappear. A total of six large blocks that had been purchased are no longer on the Pixelotto grid. […]

20 Responses to “The Pixelotto Experiment”

  1. Rik
    December 16th, 2006

    Well I have to say, this is one of the first intelligent blogpieces I read about Pixelotto. Personally I don’t think Alex is going to make it this time. He had his online publicity, but practically nothing in the traditional media. And you still need that if you want to succeed. In 3 months or so, there won’t be anymore pixels sold. And we all we start to forget about it. Not every nice idea can be repeated. And not even every nice idea is a succes the first time. Look at Steve Jobs, he made the Next Cube (which looked awsome, i thought), years and years ago and nobody wanted it. Back at Apple he tried again, still not really a succes.

  2. Art.
    December 17th, 2006

    I think that he will make it but there will be not much satusfied customers…

    I have question to author of this article - clicks you have from pixelotto.com - are they just clicks to your home page or visitors went also inside the site? what is host/hits ratio from pixelotto?

    thank you

  3. Dan
    December 17th, 2006

    @Art: Clearly some of them are going inside the site for there to have been sales made from those clicks, as the screenshot shows. I don’t have a more detailed breakdown than that.

  4. Art.
    December 17th, 2006

    clear. anyway thank you for reply.
    one more question - do you know something about his ebook? or it was total bulls**t?

  5. Ish
    December 28th, 2006

    Again, i state that Alex could have done so much more with a new site. In my opinion he’s failed to make the mark with pixelotto. Providing visitors an incentive to click the ads was correct, however, making just one person a million dollar winner doesn’t fair well with the general public……. the chances of winning aren’t realistic. One of the copycats hit the mark and that is http://www.pixaprize.com. A long-term, sustainable business concept, with the grid transformed into a treasure hunt grid and prizes hidden behind various squares for visitors to win. If that wasn’t enough, vsitors are given quirky “hot & cold” clues to help them find those prizes. Gets visitors clicking and advertisers are much happier for the traffic. Appeasing both visitors and advertisers is what it’s about and pixaprize hits the mark. Unlucky Alex i say! should’ve copied pixaprize!

  6. luv
    December 28th, 2006

    Well, a website i stumbled across on a forum has worked out more on the concept of pixelotto adding thing they thought were lacking… Over 600 contests… though no ads sold yet…
    http://www.pixelllite.com

  7. Dan
    December 28th, 2006

    Pixelllite looks too amateurish to me. The design doesn’t nearly fit in a 1024×768 browser window, but if you expand it too big, the header elements overlap and background starts repeating itself. A “pixel site” can’t work without both traffic and looking reputable enough to give money to.

  8. luv
    December 29th, 2006

    it works fine now.

  9. John
    December 29th, 2006

    I found another site, but it’s quite different - it doesn’t sell pixels, but rather letters. http://www.lettermatrix.com

  10. Dan
    December 29th, 2006

    TagsPage, which is ~2 years old, is a much better way to sell text MHD-style than that site:
    http://tagspage.com/

  11. Alex
    December 29th, 2006

    http://tagspage.com has PageRank 7 which is very important. Thx for the tip Dan! I just bought a tag on TP

  12. Dan
    December 29th, 2006

    It has PR7 but several hundred links on the page. The PageRank is distributed evenly among all of those links. You’d get more benefit buying a link on a normal PR5 page.

  13. steve
    January 7th, 2007

    i agree with you. i like the site and the idea behind it but its just too expensive, unless your a larger company and 200$ or even several thousands are just pocket change. I think sites like this would be better with the advertising cost being cheaper. It will draw more people in then that can afford it. I found a site called http://www.milliondollarnamegame.com where they are charging 5$ to advertise for at least 2 years but they are also doing a multiple money giveaway and are making some world record out of it to draw people back to the website to help the advertisers. Not sure if it would work or not?

  14. Dan
    January 15th, 2007

    Interesting Alexa graph on MDHP/Pixelotto’s traffic:

    Alexa Link

    Clearly Pixelotto’s traffic isn’t anywhere near the same magnitude as MDHP, but conveniently for MDHP buyers it revived some traffic in the MDHP site.

  15. Phil
    January 16th, 2007

    Some interesting points there, great post.

  16. Michael Blakeley
    February 13th, 2007

    Well I hear all your companits about pixelotto, and here is a website that answers them. http://www.tickettoamillion.com. Its offering a prize of one million like alex but is giving another million to charity.

    The best part about it is that it targets a new customer base by banning the advertising of websites which promote gambling, chat lines, pornography etc it aims to bring on board mainstream/ethical companies who appreciate that the a significant portion of the money they pay is going to charity.

    Its one off so no worry that our advert will be gone in a few months and registrants are not forced to click on links so everyone has an equal chance of winning and people who click on your link will genuinally be intrested in the site.

    Anyway this is my project, it launched today and allready have had a lot of intrest its just changing this into sales now! But let me know what you think, i reckon i have a chance, just wish I had a nice budget to promote it! Any ideas on free advertising most welcome lol!

  17. Gira
    October 7th, 2007

    well done - good comments - Thank you

  18. Berker
    May 15th, 2008

    Today there are many projects like this

  19. Ismail Ougradar
    June 5th, 2008

    Hello, some call me Ismail. You’ve probably visited my site, a contest to be the last person to find a prize on a page filled with ads.

    What you don’t know, there are never any winners. I simply get paid by companies whose ads you see to play. Because you sign up for the contest, I now have your email address and sell it to the companies for more money. What do you get in return?

    You do get something, you’ll never win a prize but you’ll get a mailbox full of spam messages. I’ll get money and because I doubt you’ll change your email address, I can keep reselling it.

    So thank you for visiting my site, continue to do so. Who knows, maybe someday someone will win.

    Ismail Ougradar
    PixaPrize Founder
    ismail@pixaprize.com

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