The Easiest Way to Monetize Your Business Directory
Q: What is the easiest and quickest way to monetize a directory or web portal in 2017?
In this 10 post (+) series on building a web directory business, I’ve covered a whole slew of strategies for building a web directory business in a myriad of markets and using a wide variety of different tools, templates and techniques that I personally believe make this style online business the absolute easiest to build, regardless of your experience and expertise.
To that end……
I truly believe that the “back end”, or the BIG idea that you have in mind to fuel your directory based business, is really where you ought to begin, as you can truly make more money, and have more fun, and truly engage with your own sense of passion and purpose, with THAT piece of the process (and puzzle) rather than focusing on getting “featured listings” or worrying about charging for extra little bells and whistles on the site itself. (this is no doubt where the vast majority of folks I see building these style sites sadly focus, and in my view, is doomed to disappoint)
If you get 1000 listings on your directory in the next few months, (let’s say using an email invite system, or even by calling folks directly if you are building something local) and you get 10% of those people to pay a monthly fee of lets say $50, you’ve got a month 1 income of 5k. (with the assumption that month 1 is when all of this falls perfectly in place, which of course, it won’t)
In my experience?
What you’ll find yourself doing is working your rear end off to MAINTAIN those 100 people who are paying $50 and want/need/demand some level of personal attention and upkeep that you simply will be unable to really provide at those levels. (as you certainly can’t hire someone to support those folks with that sort of margin yet….and simultaneously focus on expanding and growing your membership base, etc)
So what invariably happens, is……
You begin to LOSE a percentage of your premium listings, as those paying say – “hey, I’m not getting enough clients/calls/customers/visits to justify paying the extra fee, just downgrade me to a free listing for now”
- Your month 2 income, using this approach, is now 3k (or whatever) and it starts to atrophy and erode from there.
If you have a BACK end in mind – e.g. – “THIS is how I’m going to offer MASSIVE value to my clients/customers/featured listings….” and the premium listing is only a small piece of that puzzle, you’ll be able to charge FAR more on the front end, for a longer term (let’s say, 12 months rather than 1) and you’ll give yourself a far larger front end income cushion to give you the freedom to grow, flow and SCALE (including hiring help) all while truly solidifying your credibility as a true expert/authority and thought leader in your niche.
One of the things I recommend, even if you don’t do “web design” yourself (which I certainly don’t) is to offer a high end, 12 month agency style offer where you’ll upgrade your clients online presence, brand build, etc – as PART of the directory offer. This is especially powerful if you are working in a local niche, and your ideal audience (both the public, and the professionals you are connecting with) are all located in one city, state, town or area.
A good hyper local agency style offer example?
Go look in your local area at all of the pizza place, italian restaurants, etc. You’ll notice, if you live anywhere similar to me, that for every 10 you find, at least 5 have really badly designed websites, with ugly templates, or badly designed menus, or even worse….have NO real web presence at all, other than piggybacking off of some local search result link.
Now go to a site like Themeforest, and find a really high end theme or framework specifically created for those sorts of customers.
You can literally transform the brand, blog and ecommerce oriented business of any of these local shops in an afternoon, and offer a completed site as part of the “package” for a premium listing. (charging lets say, 3K for the year, up front, for a featured listing with a turn key website that literally took you 3 hours to install and customize, complete with hosting, a newsletter marketing compontent, monthly consulting, a private members community for monthly marketing advice, etc – and STILL be offering tremendous value to your featured members and “VIP” clients that really DOES transform their sense of pride and passion about their store, service and now…..website as well.
NOTE: The very best place to start is identify NICHE and NEED in whatever market/industry/vertical or locality you are targeting to build your business. What is the niche that you’d like to focus on – and why? What do the people iN that niche/market or industry NEED right now – in an honest, ethical and empirical way, to optimize and improve their online sites, services, blogs, brands and businesses……that you can HONESTLY say, without having to resort to cheesy copy or contrived conversations to make happen. (the example I always give is the restaurant owners who will have a GIANT JPG image of their menu on their home page. You can honestly tell that restaurant owner – with full honesty and integrity – that they really OUGHT not have an image as their entire website – even if it’s a picture menu that looks pretty damn tasty 🙂 Niche and need. This is a critically simple way to get fiercely focused – and hyper organized around what you want to build – who you are going to help FIRST – and how you’ll monetize your marketplace immediately thereafter.