I have been debating and debating about the subject of free analytics software (being a good thing or not), so much lately, that I am about to burst if I don't write my thoughts down, and share with everyone my feelings (about what I feel are the "true costs") on free web analytics software like Google Analytics, SiteMeter and StatCounter (just to name a few of the big freebies).
I have been reading so many negative articles and blog posts about the kind of raw SEO data that you are just handing companies like Google if you are using their free Google Analytics software. It really is nerve racking to think about all the data they are getting that could come back to hurt your link building campaigns for natural rankings, even if you are doing everything white hat. Google wants to make more money. What business doesn't, so I understand that!
But think about all the debate right now going on about paid links, and Google giving you all kinds webmaster tools etc. (to "help out") it is starting to lead me to believe they could (if not want) to use this information against you. They want to find out the information that is going help them get more clicks on their Google Ads that in turn makes them more money.
So again, I ask; What is the cost of free web analytics software? If you are using any of the examples I gave above you give up things like privacy (because your data is shared with everyone), you are asked for a site wide outbound link and your data could possibly sold to a third party company.
I read a blog post the other day by Aaron Wall talking about the cost of free analytics too, and he suggested a server hosted web analytics software from a company called Mint which cost $30 bucks/ site. I think it is a good idea for webmasters to start thinking about finding a solution that is not free, especially from companies who could use the data against you. I am a big fan of web analytics software from companies like Omniture, but I realize they may not be the perfect solution for a small business.
The point here is to start thinking about the data you are giving up and what it is used for (or could be used for). I am not going all conspiracy theory on you yet concerning Google, but I think it is a good time to start looking for alternative solutions (for web analytics) to the companies that give everything away for "free".