6 {{ upvoteCount | shortNum }}
6 {{ upvoteCount | shortNum }}

Monetizing a niche directory/resource site

by bananapeel
5 replies
How its going guys? Look for some advice.

I am building a niche directory site that will list a bunch of b2c businesses that offer these services. In all, I'd say there is only 300~ of these types of business in north america but the services they provide are growing in demand year by year and new businesses in this niche are popping up every month.

The service they sell ranges in the 8k-20k price range and there is likely no more value the business can extract from the customer after they use the service once.

I am trying to figure out how I am going monetize such a site. I want to list all of these businesses because I want my site to become an authority site in this niche that provides a one stop location for readers to compare these businesses and find one that is right for them.

Some of these businesses dont need customers because they are well known, and probably have to turn down alot of clients. But the newer, lesser known businesses definitely need more exposure if they plan to grow.

My ideas on monetizing thus far:

-Have a free listing, complete business profile with out any special extras.
-Premium listing, add a contact form to request information on their profile page + better search rankings on the site. Businesses with premium listings will rank higher than free listings. Also their as an option for adding these listings to a sponsored listings carousel at the top that fits in well with the site and niche. Should I break these benefits into two different package levels? Charge monthly, quarterly, or yearly?
-Collect leads on other forms on site and try and sell them to the businesses that want more leads, again how do I price?

I plan to allow companies to go through the submission steps to add their site. At the final page where it says listing success, I plan to try and upsell them a premium listing package. Does this sound good?

How do I price such a listing? The value of one customer is large, CPC is in the $15 dollar range although I only know of one company that is using adwords for keyword I checked.

Looking forward to any advice you can throw my way.
#directory or resource #monetizing #niche #site
  • Profile picture of the author Steve B
    What is your competition doing? It would be rare not to have several to many directory sites in a given niche market.

    See what the competition is charging and the types of service they provide. If you want to become the authority in the niche, you're going to have to unseat someone so it pays to understand who the top players are and how you are going to leapfrog them with your own brand new site.

    What is compelling about your directory? What are all the benefits for those who join? Why your site over others? Answer these questions and you will be on your way to knowing what you have to do to stand above the competition.

    Good luck,

    Steve
    Signature

    Steve Browne, online business strategies, tips, guidance, and resources
    SteveBrowneDirect

    {{ DiscussionBoard.errors[10126849].message }}
  • Profile picture of the author bananapeel
    Thanks Steve B.

    There are 2-3 competing sites that do exist. They provide directory type sites with some reviews and lots of information regarding the niche. Their directory results resemble a blog sorta and their search features are lacking. One site offers very simple filtering, where I plan to offer extensive filtering to help customers narrow down their search field. There is no community interaction beyond business review forms from past customers. These sites were also built on platforms that dont allow expansion into the social community arena quite as easily. They only provide information request forms in a few cases and they arent exactly easy to find.
    {{ DiscussionBoard.errors[10126864].message }}
  • Profile picture of the author bananapeel
    So that leaves me with a game plan to formulate. I plan to add all the listings I can as basic listings without a lead form. Going to give maybe 10 companies a free trial on the full upgraded listing. Then later try to upsell the premium listings to the other companies.

    How does one decide on price tho? Pick a number out of the air?
    {{ DiscussionBoard.errors[10127005].message }}
    • Profile picture of the author Steve B
      Is there any competition that is successfully doing the same thing? See what they are charging.

      If not, check other B2C directories in different niches. It should give you a ball park of what others have paid for similar services. Don't be afraid to charge a little more than others and over deliver so you can justify the higher price.

      Steve
      Signature

      Steve Browne, online business strategies, tips, guidance, and resources
      SteveBrowneDirect

      {{ DiscussionBoard.errors[10127059].message }}
    • Profile picture of the author TheGMa
      Hm. Well, Banana, the first place to start is by, as Steve said, looking at the competition.

      If you were manufacturing widgets, you would work out your costs and overhead and go from there. The general rule is labor x 3 in order to make a profit after expenses. But for netpreneurs the rules are a little different.

      Your time has value, and there are plenty of places on the 'net that allow you to figure out what your time is worth.

      Next, what is your overhead? That means what it costs to pay for the area in which you work - the rent, the electricity for the small square footage you call your office. How much space do you and your computer take up? Are you advertising? Using AdWords? What's that costin' ya'?

      Take a look at what the competition is charging. Does it cover all the above?

      If not, are you willing to record a loss, i.e. invest in your ingenuity long enough to cover those expenses and make a profit? It could take you a couple of years, you know.

      How do you know when you are making a profit? When you have paid yourself back for all the time and effort and expenses expended and accounted for over time and have money left over.
      {{ DiscussionBoard.errors[10127073].message }}

Trending Topics