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When is a directory listing or advertisement worth paying for?
by Aaron Kirk Douglas

It's interesting that even with today's world-at-your-fingertips Internet access, there is still a vigorous competition between Web-based and hardcopy directories, both vying for your limited marketing dollar.

The questions we might initially face in an onslaught of requests for "paid listings" are; How do I decide which ones might be useful (if at all)? and Which ones are simply thinly veiled attempts at undue enrichment?

To find the answers, ask yourself these questions:
  1. Who is the target audience for my product or service? What is their age, income level, and interests? What do they have in common?
  2. Are they users of the directory in question? If not, are they likely to become users? If you don't know the answer, can you call a few of them to ask?
For example, I know that I have used the local telephone directory to find a variety of businesses, including pest control specialists, draperies, restaurants, carpet cleaners, auto repair shops, gift shops, and home furnace suppliers. But I have never used a paid directory listing to find a lawyer, dentist, insurance company, accountant, or home remodeling contractor. Of course not everyone thinks the same way, and that is why knowing your target audience and how they are most likely to select and purchase products and services is key in determining the use of paid directory listings.

When creating directory listings, it's important to consider what specific information your target audience might be drawn to. Look at listings for other businesses or organizations in the same industry and compare them. Are there things you want to include so that people see a similarity? In addition, how can you differentiate yourself from the pack? Is there specific information in an advertisement that will draw your buyer to it? Some might be hoping you list your company business license number, contractor's bond number, statement regarding insurance, years in business, or membership in the Better Business Bureau. Other people may look for discounts for members of certain groups such as AAA or AARP, or other special deals or offers.

Supporting a trade organization you belong to with a paid directory listing or small advertisement might be a nice gesture of goodwill and would make it easy for people to find you, especially if you are active in the organization and have name familiarity already with some or most of the people in the group. But don't count on them bringing in business for you unless you ask people in the group whether they actually use the directory when making hiring or purchasing decisions. My guess is they don't, but you can get to know people and remind them you're listed in the directory (in case they lose your card).

Other important things to determine: How many copies of directories are distributed? To whom? How frequently?

With respect to Web-based directories, many people will talk about "hits" per month, but this is not the number you really want for analysis. For example, you could have one million hits per month on a site, but only one single visitor looking at one million pages. When Web directory sales people call, find out how many "user sessions" and how many "unique visitors" they have each month. User sessions will tell you how many total visitors they had in a month, and "unique visitors" will tell you how many different individuals came to the site. As before, you might have a thousand user sessions, but all those user sessions will be generated by 2, 5, or 25 unique visitors. Also, be sure to ask whether the number of visitors excludes the staff of the directory service itself. (If they have 25 staff people, for example, chances are they have all visited.) Find out about their visitors. What kinds of businesses or people are they? Make sure they are your target audience. Web directory sellers will try to impress you with big numbers. Some directories are worth it; others are not.

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