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Only the paranoid survive. These were the words proclaimed by and attributed to Andrew S. Grove, Senior Advisor of Intel Corporation. I knew nothing about his theory or his book — which I do plan to read very soon — until last week. I’m assuming his book, which discusses the exploitation of the inflection points of every business, refers to traditional business models. However, the idea of paranoia being the basis of survival in business can definitely apply to online enterprises as well. Why did I even write about this topic and associate it with online business? Well, because of Google.

My colleagues and I were at lunch the other day and the topic of Google came up — both in reference to paid search marketing and search engine optimization. The company I’m employed at owns web properties ranging from e-commerce to social networking to affiliate marketing. All of the industries we’re in are on the higher end of the competitive spectrum. We were discussing strategy and ways to prevent being penalized by Google, both in AdWords and in natural search results. Contrary to some misconceptions, you can be banned from AdWords — forever. One colleague brought up Andrew Grove, and a whole new conversation sprang up.

There are many companies that walk the fine lines of “white hat” vs. “grey hat” vs. “black hat” SEO. We are in the white hat camp, perhaps occasionally walking on the line between white and grey. But having a white hat still means erring on the side of caution since many people who participate in SEO are taking a risk in being penalized by Google if the techniques used aren’t properly monitored. This is where the paranoia begins.

Since nobody outside of Google really knows what factors are used to penalize sites that try to exploit their guideline loopholes, one could assume that any technique used to manipulate search engine favoritism (both in SEO and PPC) may one day be exposed. Throwing caution to the wind and employing quick-results techniques now can come back to bite you in the you-know-what months, or even years, down the road. Is it worth it to garner those short-term gains and risk the long term damage that may or may not happen sometime in the near or distant future?!

So let me get back to Mr. Grove’s theory, that “Only the paranoid survive.” It’s a powerful statement. Not having read the book yet, I can understand how the founder of Intel would incorporate “paranoia” into his business operations. Increased market competition, technological advancements, decreased demand or brand awareness, and so on, can throw any successful business into a downward spiral. Worry, preparation, and pro-active motivation can help prevent major losses if and when a market shift occurs. In online advertising, one major shift that occurred last year was Google’s implementation of the Landing Page Quality Score. It knocked businesses off their feet, some of which haven’t been able to recover. While it was difficult to know what the quality score would entail, being prepared and being willing to adapt, adjust and learn at the time it was applied made all the difference to the businesses that survived.

I plan on reading the book, and maybe even sharing what I’ve learned from it. In the meantime, I recommend all of you who own an online business or participate in SEO to ponder the theory that only the paranoid survive. Are you doing enough to protect your online enterprise from the wrath of Google? If not, what could you do to better protect your business, retain its market uniqueness, and prepare for any changes that could affect it? Would your business survive if Google banned you from AdWords or natural search listings, or both? These days, it seems the omniscient Google will have many people paranoid, and from what I’m thinking of Mr. Grove’s theory, the paranoia is well warranted.

What do you think? Let me know if you’ve read this book or have any thoughts to share with the rest of us!

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