YouShouldKnow.com

You know, it not too often that I take a little bit of time to actually rant about something near and dear to my heart, but today I’ve decided it was time.

I was browsing through my favorite forums today and decided I would take a peek into the directory forum and see what was happening. I enjoy doing a quick glance over the thread titles and then basically start reading from there. However, for some reason, during my quick glance of the threads, things really hit a nerve today, I am not sure why but they did.

Could it be because of the multitude of threads promoting selling of high Pagerank (PR) directory links? Maybe it is all the new directory submission solicitations advertising free inclusions for a limited time offer? Or perhaps it is the endless number of directory evangelists pushing the viability of running a turn key directory? Oh and then there are the so called “Directory Gurus” freely offering lame advice and the “cure-all pill” of changing your default layout to improve the way Google views your site and the chances of getting indexed and achieving high SERPs.

What ever it is, I think its time for a wake up call!!! If you are a directory owner or thinking of getting into the directory business heed this advice:

You WILL NOT and CAN NOT make a living using turn-key directory script deployments! (… and changing the default layout isn’t going to help).

As it stands today, many of the web directory business models promoted by the developers of these turn key scripts are not viable. Sure they come up with these great add-ons that allow you to provide deep links to sites or add-ons that show the PR of the listed site and an accompanying cute little thumbnail of the site. But really where is the value? The truth of the matter is that these directories are just useless sites packed full of links with absolutely no value – other than perhaps a link to the submitter’s site. 99% of today’s directories are just an accumulation of links to sites.

Question:
So how do you create value with your directory and monetize its potential?

Answer:
It involves a significant paradigm shift. It also involves understanding the critical elements of the “web directory food chain”, and how to provide value to each of those elements while incorporating a viable and sound business model that supports each element.

Question:
What comprises the “web directory food chain”?

Answer:
There are four critical components to the web directory food chain.

1. The site owner (that would be you)
2. The advertiser
3. The visitor
4. The web site (note how I didn’t say directory)

If you fail to provide value to any of these elements, your directory is more than likely going to fail.

How do you create value for all elements of the web directory food chain?

Let’s get one thing straight off the get-go; stand alone web directories are useless. If you want to build a successful business model and make money using directories you need to offer more than just a directory.

I strongly suggest people get out of stand alone directories if you are not willing to invest the time and energy to produce something of value. If you are stuck on monetizing a directory, at least make it specific to a particular niche as global/broad directories are again useless and serve no purpose.

The solution is quite simple; create a niche directory and then wrap some other features around the directory to create what the industry refers as a vertical. A vertical is similar to a portal but much more targeted to a specific niche. This alone can propel your traffic and earnings way beyond what directories typically generate.

Creating additional services around your directories sends a very clear message to your site visitors and potential advertisers. It is telling them that you mean business, you understand what they want and you want to provide the most value to your visitors and advertisers. Ummm yah its not always about you!!

So what does this look like? What kind of services are we talking about? Let’s take the example of the setting up a Golf vertical and associated services. The following is an example of a few services you could create;

• create a Buy/Sell/Trade classifieds for golf equipment
• create an article section where you post Golf Tips and Product reviews
• create news area where you publish the latest and greatest news around golf
• create golf course rating card where people can comment on courses they have played
• setup a coupon area where golf courses and golf shops can post coupons
• create a golf meetup section where golfers can find others to play with
• setup a forum where people can talk it up
• setup a blog and share your expertise
• create an auction are where people can auction off their goods
• allow for banner advertising and other monetization programs for advertisers

Providing some of these services for free initially, will kick start your vertical and generate some much needed interest and traffic to your site. Don’t be scared to charge for some of your other services as this also sends a message to potential visitors and advertisers – “I’m a business, not a fly by night operation.” As popularity increases, you can start turning some of your remaining free services to paid services.

Congratulations you have just created multiple streams of income for your site and we haven’t even talked about your directory yet..

One of the most common mistakes made by directory owners is that they create a directory for the sole purpose of providing links to any site that submits to them; thus the term “link directory”. Diversifying of your listings is a key component for success. You need to understand that not everyone has a website and that not everyone has the capacity or desire to process orders online. So remember to also service those that others fail to service or adequately accommodate!

When looking at setting up your directory, your primary objective should be to create a “business directory” that supports listings for sites and companies that have an online presence and for companies with no web presence. This will let you accommodate both online and “brick & mortar” advertisers and businesses. You are now opening your door to all sorts of businesses!!! Do you understand the message I am trying to convey?

Now take a second to sit back and look at your directory!! Do you offer other services that compliment your directory, add value and give users a reason to keep coming back? Are you accommodating those whom for one reason or another don’t have a website but are intent on doing some business online?

At this time, 99% of you don’t !!!

So let’s revisit, the web directory food chain and see if by creating a vertical around your directory creates value for every element.

1. The site owner

By creating these varieties of services and a vertical, you have created multiple streams of income. You will start to make more money from different sources other than just listings. You will be able to up sell and create more diverse set of service offerings for your visitors and advertisers. As you see results, you will start to dedicate more time to your vertical knowing you are providing more value to your visitors and advertisers. You will have more fun managing your site and make more money.

You win!

2. The advertiser

The vertical will provide the advertisers with additional products and services that go beyond the traditional directory listing purchase. As you establish a base of users and traffic, the advertiser will start to see more and more leads and conversions originating from your site. Your advertiser’s competitors will quickly spot your site while researching some of your advertisers and will want to leverage your services in order not to be left out. Advertisers will not hesitate to make more long term advertising commitments with you.

Advertisers win!

3. The visitor

Your vertical will start providing a diverse range of information to the visitors. They will slowly start to realize that your site is more than just a link directory. They will start to tell their friends about your site. They will start to find information and products they are seeking. You will start to build and become a community where your visitors can interact real-time and build additional information and content for your site. Visitors with web sites will start back linking to your vertical and your sites popularity will increase.

Visitors win!

4. The web site

Say good bye to a boring, useless and an uneventful web site. With your vertical, you are now transforming your turn-key directory into a site that is community focused and packed full of useful products, services and information. You are increasing the value of your virtual real estate. Advertisers and visitors will start to recognize that this is the place to be. Advertisers will not shy away from listing, using or paying for your services. Visitor traffic and involvement will increase. Google and other search engines will start indexing more and more of your content and will start looking at you as an authoritative site. Your site will start rising to the top of SERPs based on its true merit.

Everyone wins!

So remember, create value and stop the clutter of useless and ineffective turn key directories!! Use your time wisely and create something you are proud of and are able to monetize to its fullest extent. Separate yourself from the 99% of turn-key directory owners whom are out just for the quick buck. Build your niche specific vertical and contribute useful content and resources valued by all.

For those wanting additional readings, Rand Fishkin from SEOMOZ.com has put together a nice summary called:

What Makes a Good Web Directory, and Why Google Penalized Dozens of Bad Ones.

Share This