New Business but no money.

[Adpod]

Hi Guys,

So I have come up with a brand new business idea, I say brand new but its been done before and I say business but I don't plan to make any money from it (one goal hit already ).

I am currently building a community style website centered around one industry. I do have one major USP that will drive people to my website and I plan on putting a business directory on the site and offering businesses (in the industry) free advertisement.

One problem, as I plan on making no money by charging anyone (there is a possibility to place advertisement down the line) how do I attract businesses to our site, and is it something businesses would advertise on (even if its free and industry specific)?

A business directory with only a couple of businesses on it looks 10x worse than no directory at all.

Any help will be great thanks

AD

 

[KeithP]

It is notoriously difficult to gain traction with a directory website. You've already identified that nobody will use a directory with a limited amount of businesses but it's difficult to get businesses to list (even for free) if you've got no traffic.

I helped to create and develop what is now the leading HGV training resource in the UK and it was a hard slog getting to a point where we could even think about charging advertisers.

The bottom line is there are no shortcuts - you need to produce a website that will be useful to your users so a directory on it's own won't work. We built a substantial database of articles and other useful resources that helped people looking to find HGV training, plus it significantly helped our visibility in the search engines. It took about 12-months before we got to a point where our traffic levels were decent.

If you want some further advice or guidance, feel free to PM me.

 

[guest_12]

I wouldn't include the directory at first, build up your customers/community then bring in the directory, that way all your customer will know that its a new product/service and wont expect it to be filled with millions of businesses.

 

[The Byre]

Certain types of businesses attract business directories like flies. There are now as many business directories for recording studios as there are recording studios! The same goes for many other types of business and I sometimes wonder about people who start business directories! They only seem to target 'sexy' businesses, but never the boring stuff one really needs!

 

[Paul Norman]

The opening poster is well meaning, but why are we humouring them? This project will take time, and money, to execute successfully.

Once you have succeeded in driving big amounts of traffic to the site, people might, just might, pay to advertise on it. Just might.

The project is possible. But assuming you wish to earn a living out of it, you are looking for a long long haul. And money. Did I mention money. Because whilst you are hauling, you have to live.

 

[matt.chatterley]

I have to echo Paul's comment above (Paul, I'm not stalking you, honest, guv). It's not a business if you don't plan to make money from it!

This, like many ideas is a case of "Yes, we'll build something amazing - then we'll find a way to make money from it later!", only the thing is that it's generally nigh on impossible to monetise later on.

We have a large directory site amongst our portfolio which has good traffic, lots of content, a large social following, etc, and yet doesn't even cover it's running costs. Luckily it was started as a community project and doesn't need to make any money!

But I certainly wouldn't start another such project with thoughts of selling advertising later and expect it to work.

 

[Adpod]

I have to echo Paul's comment above (Paul, I'm not stalking you, honest, guv). It's not a business if you don't plan to make money from it!

This, like many ideas is a case of "Yes, we'll build something amazing - then we'll find a way to make money from it later!", only the thing is that it's generally nigh on impossible to monetise later on.

We have a large directory site amongst our portfolio which has good traffic, lots of content, a large social following, etc, and yet doesn't even cover it's running costs. Luckily it was started as a community project and doesn't need to make any money!

But I certainly wouldn't start another such project with thoughts of selling advertising later and expect it to work.

Like I said, its not meant to make money but if it does then thats great.

The site is about helping people and if it can help 1 person then it is worth my time and money.

This isnt a business directory site - it is a website with a good USP to drive customers and I thought about adding a business directory as another reason for people to come to the site.

 

[nopasara]

Let me join in: suppose you have a website (of any kind). How do you drive traffic other than with adwords?

 

[Ashley_Price]

Just because you don't want to make money, doesn't mean you don't need to have money. And I think having a site that is community-based will probably need a lot of investment to get it off the ground.

The problem, however, is likely to be perception. If it doesn't cost anything to advertise then how good and reputable are the businesses that are advertising? You are likely to get flooded by all and sundry - many who are probably "here today, gone tomorrow". If people get a bad experience from some of the businesses it will reflect badly on your site as well. So, you'd probably need to check out the firms before displaying them on the site.

Besides, if the businesses are going to make money from your site's visitors then you should either get a percentage or charge them for the advert.

 

[Adpod]

Let me join in: suppose you have a website (of any kind). How do you drive traffic other than with adwords?

I have made connections with 4 companies who have a combined customer base of over 2 million people, they have agreed to promote it for free as it will help their customers.

Just because you don't want to make money, doesn't mean you don't need to have money. And I think having a site that is community-based will probably need a lot of investment to get it off the ground.

The problem, however, is likely to be perception. If it doesn't cost anything to advertise then how good and reputable are the businesses that are advertising? You are likely to get flooded by all and sundry - many who are probably "here today, gone tomorrow". If people get a bad experience from some of the businesses it will reflect badly on your site as well. So, you'd probably need to check out the firms before displaying them on the site.

Besides, if the businesses are going to make money from your site's visitors then you should either get a percentage or charge them for the advert.

So far it has cost only the price of a domain and hosting - £34 per year. I have used my skills (with help from wordpress) to create the site.

I understand what you mean about perception, there is a common theme around directory sites and I will need to consider it.

At this time making money is of no concern and if other businesses want to profit from the site thats great.

 

[nopasara]

Adpod, what kind of service are you offering, which would be usable to the customers of these companies? And... how did you make the connections, if it's not too secret and private and stuff?

 

[Adpod]

Adpod, what kind of service are you offering, which would be usable to the customers of these companies? And... how did you make the connections, if it's not too secret and private and stuff?

I don't want to say until the site is completed and live.

I contacted them through Facebook and twitter, explained what the site will do and how it can be good for their customers.

Not everyone responded or agreed.

 

[figurewizard]

The problem is that a directory type approach is going head to head with Google, Bing and so on. Even Yellow Pages is now in deep and possibly irreversible trouble.

 

[Peanut Butter Man]

Let me join in: suppose you have a website (of any kind). How do you drive traffic other than with adwords?

You drive traffic slowly with things like the following.

Joining forums: like this and having you link in the signature but only post things of value to avoid being viewed as a spammer.

Create a Facebook page: use it to post snippets that lead back to your own site

Pinterest, Google+, Stumble Upon: And the many other similar sites

You Tube Channel: Create one and like me create videos and build upon them that add value and offer something to the watcher

Linked In Group: I have created a small business group just today. The idea behind this is again to offer something of worth which may lead to visitors

It is very easy to get into a habit of posting in 'Shot gun' style in that you just blindly post to all of the above... Don't. For me, I have just taken a step back and started to look at each in turn so I can understand better and get the most out of each

Also, as mentioned understand that nothing happens over night.

 

[Peanut Butter Man]

So far it has cost only the price of a domain and hosting - £34 per year. I have used my skills (with help from wordpress) to create the site.

It does cost you more than the £34 per year if you loom at the many many hours the likes of us, and myself included, spend in front of the laptop promoting, creating images etc etc when normal people are doing normal things. It may not be a £ value but still a cost and unless you do it just for the love.. It would be nice to get a return