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When I first started trying to make money online I literally had hundreds of ideas rumbling around my brain at any one time. When you’ve not tried anything before all these ideas all seem quite good, fueling your eagerness to really make them work. It’s only when you start putting some of them into practice that the whole thing seems a little….daunting.

However, once you try out 20 different ideas you then get a feel for what’s working & what simply isn’t. This in turn narrows down your “idea pool” into a more targeted list of potential opportunities.

Almost every Affiliate Marketer I know has a few sites that I like to call their “foundations.” These sites are more than likely the first ones they built & the ones they hold dearest to their heart. If you think of Affiliate Marketing like building a house then these sites would be your starting point, holding the whole structure together to really give you the stability to make more decisions.

I’m briefly going to talk about the kind of sites that I built when I first started, these are the sites that I regard as being my “solid foundations.” i.e. if the shit hits the fan, at least there’s still something out there I can still rely on to produce a steady income.

One business model that has really stood the test of time (right from when I started in Internet Marketing) is the Local Directory Listing. A Local Directory normally includes listings that are Local (By Suburb or Postcode), National or (on a larger scale) International. It also normally serves a purpose i.e. Helping people find & locate a particular service to use, or even letting people rate services based on past experiences.

Yellow Pages is the grand poobah of all things local. If you need a product or service most people will generally either pick it up first or do a search in Google. That’s where we come in.

The Theory

The idea is simple, pick a niche, build a local directory, fill it with content, promote, implement an advertising model then start charging.

I normally try my best to target local directories to where I live. For example, a .com.au domain name will naturally rank much better than a .com for local related searches. That’s why when you search for something like a Gym on Google.com & Google.co.uk you get two totally different results. Use this to your advantage when choosing either a location or a niche.

Let’s for the purpose of this article choose a niche in my hometown of Melbourne. We’ll go with the theme from the previous note, Gyms. I can imagine that searching for a gym in your local area would be a fairly common thing, as people want to know if there’s a Gym local to them or to their work. I know I’ve searched for this exact thing before.

For step one you’ll need to research the competition. A quick search in Google shows one main competitor, the Good Gym Guide. I quickly use the SEO For Firefox tool to get an idea of what sort of Link Volume I’d need to beat them. 296 Inbound links, pretty poor. So we know the only thing they have on us is time. Further analysis shows they’ve been up & running since 2000, that’s a pain but nothing we can’t handle.

For step two we’ll do some keyword research on Gyms & related terms.

Gym Membership in Victoria

The graph above is from Google Trends, I use this to get a rough idea of search volume. You can see a number of things in this graph:

  • Searching for the Gym is on the rise in Victoria, Australia
  • There’s a significant rise in the number of searches around Christmas & New Year

These are both promising signs for starting a Gym based directory website.

Next, lets look at the search volume in Keywords Analyzer & Wordtracker to get an idea of what breadth of keywords we can target besides just going going for Suburbs:

Keywords Analyzer

There’s quite a lot of brand name Gym’s coming up in Keywords Analyzer, so we may want to also consider splitting the site into sections. For example “Brand Name Gym in Suburb.” That data also gives us some useful keywords that we can try to build content around. One thing to remember is that quite often these keyword tools will strip out plurals so the term “curve gym” could be “curves gym” (which just so happens to be a popular Gym in Australia).

I’ll then use Wordtracker to dig a bit deeper & find related keywords to Gym, however since I’m focusing on an Australian niche here I won’t use Wordtracker for the Keyword Research:

Wordtracker

You can see we’re now building a nice list of other potential things we can target like Personal Training, Health Clubs & Fitness Clubs, the list is much much bigger, so I’ll generally take notes & store all the potential keyword candidates.

Finally I’ll grab some data from the Google Adwords Keyword Tool, this tool gives Australian Data so it’ll hopefully give us some useful stuff:

Google Adwords Keyword Tool - Gym

Nothing overly different in this list, although there’s some low hanging fruit to pick up that we can use for some articles etc.

The more data sets you can get your hands on for keyword analysis the better, I’m a big fan of using multiple tools to get different angles & compare data for consistency. Last thing I want to do is go after a keyword that’s ranking in position #3 on Keywords Analyzer then realise that it doesn’t show anywhere on any of my other keyword tools.

So we now know what we need to do, we just have to execute the plan.

The Process

For step three you’ll need to put together a list of all the suburbs within the area you’re going to target. That’s fairly straight forward. Start with the bigger suburbs first. I’d initially start within Melbourne & branch things out.

For step four you’ll need to register a domain, I’d normally say try to brand it but keep with the gym or fitness theme.

Step five, you’ll now want to think about how you’re going to structure the site. I’d be inclined to keep things simple first. I’ve put together a rough layout to follow:

Directory Layout

Keep all the suburbs & listings as close to the front page as you can. What really annoys me about directories is that you can get buried under 4-5 categories before you’ll be seen. This isn’t good for Search Engine Rankings & it’s not good for potential advertisers. That’s why I’ve emphasised having the list by suburb in the left hand menu. This works really well.

For SEO, make sure each page has a unique title:

  • Homepage – Gyms & Fitness Centres in City
  • Category Pages – Gyms in Suburb
  • Gym Pages – Gym Name in Suburb

You don’t need any special kind of software to do this, I normally just use Wordpress for these types of sites (I do plan on releasing a few prebuilt Wordpress themes to do this with ;) ). However if you want something with automated payment systems etc then you’ll need to do a bit of research.

Eventually as you get bigger you can start branching out into subdomains:

  • melbourne.yourdomain.com.au
  • sydney.yourdomain.com.au
  • perth.yourdomain.com.au

Before you know it, your dealing on a National scale, instead of a local one.

Launching

Before you can start charging for advertising, you’ll need to prove that the site is getting traffic. I normally pump about $600-$1000 into an Adword campaign & send a Press Release to kick start things from a traffic perspective. A similar site I launched two months ago is doing around 162,000 Page Impressions a month.

I also recommend checking out this article I wrote on Google’s Aging Filter & Trustrank.

Those sorts of statistics are what Advertisers want to know. So make sure you’re tracking everything with Google Analytics. Also look into tracking outbound clicks so you can get an idea of which advertisers are getting decent enquiries.

Collect Email Addresses

Collecting email addresses is one of the easiest ways to generate revenue. You need to provide value to the list in order to gain their trust first though. Aweber is my preferred list management tool for this.

Create a 10 day course which consists of 10 tips that automatically go out each day when someone signs up to the list.

You can market affiliate offers to your list, allow gyms to advertise in it & also highlight any special offers that members might find useful.

Monetization

Is this type of site profitable? Hell yes it is. I used to do SEO for a client whose revenues were over $350,000 / year using this exact method.

There’s five main ways to monetize this type of site. The great thing is that you can use all the forms of monetization all at once. I still have heaps of these types of sites that make decent cash with Adsense, I’ve just not bothered turning them into anything else other than an information hub.

To really start making decent cash out of a project like this is that you’re going to need to get on the phone & call people. Sell your product to them & make them feel like they need it. This works, really well. You just need to crawl out of your “internet marketing cave” & knuckle down. You’ll thank yourself for it later.

Once you’ve got traffic, write down 5-10 benefits you think advertisers will get from being on your site. Make it sound exciting, make them think that if they’re not on your site then Gym Buddies down the road will be getting all the memberships that they’re missing out on.

Adsense: This is the simplest form of advertising, I’d use this when you first launch to try & offset the cost of any initial marketing costs.

Affiliate Programs: Some of the gyms out there offer affiliate programs, there’s plenty of other types of affiliate programs that would perform well, Weight Loss etc. Having a mailing list makes this section of monetization even more profitable as you know you have a targeted list of people at your fingertips.

Banner Advertising: You can see advertising space in the form of banner ads, niche sites can normally sell ads on a CPM basis ($10CPM is a good round figure). You can manage this type of banner delivery with Openads.

Direct Placement: This is going to be your big money maker, actual Gym’s paying you a yearly fee to be included in your Directory. It’s up to you what you charge, but there’s a heap of cash to be made here. Again you need to provide value to the client, they won’t renew at the end of the year if you’re not sending them traffic. Reinvest money made to provide as much value for the client as possible. You’ll keep them year on year if you do this, instead of just a once off.

Sell the Database: Databases of information sell well around the internet. If you create a database of all the gyms in Australia then someone, somewhere will want to buy it.

Other potential profitable niches

The Gym example above is just to show you how things can be done, here’s another handful of niches that it could be applied to:

  • Natural Therapies
  • Adult Services
  • Churches
  • Hairdresses & Barbers
  • Restaurants

Final Overview

Local Directory Score

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34 Comments on "Local Niche Directory Sites: A Stable Cashflow"

Burgo 31. Oct 2007, 3:28 pm

Awesome Stuart! Not that I’m getting down on your other posts, but this is easily my favourite post from you in a while.

Phixx 31. Oct 2007, 7:12 pm

Definitely one of your best articles ever and the Earnometer is a great idea!

Adam 31. Oct 2007, 7:40 pm

Very good article! One question: where do you normally get the data from? Do you buy a database with gyms or scraping or something else?

Stuart 31. Oct 2007, 8:01 pm

Adam, I actually prefer to pay someone to do all the data manually / do it myself.

I find that databases can be too widely used & there’s too many niche sites around using that information already.

Unique content & information makes your website much more valuable.

tanya 31. Oct 2007, 11:34 pm

This is such an informative article. I was wondering if Adam meant where do you actually find a list of gyms that are located in the area/city/suburb to put in the directory. Do you just gt it from Yellow Pages or someting similar?

Custom Niche Databases 01. Nov 2007, 11:27 am

If anyone is interested in getting a database of from yellowpages.com, I do custom scraping.

Email me and let me know what you need.

customnichedatabases at gmail dot com

Bench Press 01. Nov 2007, 12:36 pm

I’m in the process of doing this at the moment, you may also want to look into getting cheap flyers made up for windshields.

Don’t forget about premium listings for a premium price :D

John 01. Nov 2007, 1:04 pm

This is such an awesome post. Thanks so much.

There’s something I’m not too clear on. Is the process to fill the pages at the beginning with all the local gyms names and details you can find, without their knowledge, and then after a few months call them and tell them that you are going to remove every gym that doesn’t pay an annual fee?

Stuart 01. Nov 2007, 2:06 pm

John: There’s two ways you can do this. Show them the value you can provide them then ask them to pay for it.

Or

Show them the value you’re already providing to one of the competitors then ask them to pay for it :)

Shaun 02. Nov 2007, 1:53 am

This is a great post, something i have been trying with a couple of sites and had moderate success so far. A couple of things in this post that have given me a few ideas to try so thanks for that.

For one of my directories i have more of a blog feel to the homepage where i am constantly uploading new content related to the niche, then a link to the directory from the home page. Do you think i would be better off having the directory moved to the homepage itself ?

Jon - Art of Money 02. Nov 2007, 4:16 am

Very good article Stuart. Would have made a winning eBook…LOL.

Another way you could monetize, and I’ve been meaning to try this myself, is to do lead captures and have the merchants (gym owners in your example) either bid on or purchase outright the leads.

When do you expect to release the templates for WordPress? I’m really curious to see how you have it setup as a directory. I’m assuming each Gym would get its own post?

Brandon - Call Center Consultant 02. Nov 2007, 8:20 am

Wow Stuart, great design, I love the Earnability factor and this post was top notch!

Smart websites make money 09. Nov 2007, 2:03 am

I have just started such a website, in my country and your article comes at a right moment. Just that I didn’t start it on a niche, I intend to have it as a nationwide company directories. It may be a bit too big but I am still working on it, so it is nothing established yet.

Joy 09. Nov 2007, 8:14 am

Nice article..^^..thanks for sharing it with us Stuart..you’ve helped a lot.

Tudor Mateescu 11. Nov 2007, 8:31 am

Nice article. Very detailed and step by step instruction for every aspirant to use it.

Akiva 15. Nov 2007, 9:47 am

Thanks Stuart,

Great post. Would you mind sharing (url) one of your directories with us?

Thanks

Akiva

Akiva 15. Nov 2007, 9:56 pm

Stuart, I also forgot to ask you whether you install Wordpress for each subdomain separately, or do you know of a way to bypass this?

Thanks again

JDemetrios 17. Nov 2007, 8:49 am

To: The Master of directories
Message: if you aren’t filthy rich then there’s no hope for me.
unbelievably concise explanation, even though 60% was beyond me.
PLease get in touch I need to know if you charge for this type of thing.

Arnie 08. Dec 2007, 4:43 am

I am curious to know what blog template you use for this blog. Very clean look. And… some very informative posts too.

Tony 25. Feb 2008, 6:35 am

How much would you expect to earn from this type of site in a year (ballpark) if you did all of the things you described above?

Stuart 28. Feb 2008, 10:51 am

If you charge $200 per year for a listing & get 100-200 business on board per year then you’re talking $20-40k.

That all depends on how good you are at selling the service. Once you’ve got a few directories set up you can hire people to do the cold calling for you.

Danny 09. Mar 2008, 3:29 am

Thanks for sharing Stuart.
when you say $200 per listing; do you mean premium listing and would you do a one page listing with photos?
Thanks

DC 30. Mar 2008, 3:42 am

I am looking for a theme to do just this. Any Ideas.

Thanks

Joe Hill 18. Jul 2008, 9:24 am

I just built a directory for my town in attempt to get free marketing for my carpet cleaning business. It is working as far as getting cleaning jobs however I am overwhelmed and considering getting a partner. I could use any suggestions. The site is eurekatest.com where you can see video demonstrations form local business owners and testimonials from their clients. I have not charged anyone for their listing to get the ball rolling and have been told that my compeditors charge as much as $400 per month.

craig 23. Jul 2008, 12:50 pm

funny timing this, as i was awake most of last night thinking of how i might implement this very same thing!!! maby this is an omen!!

cheers for the tips….any tips for using wordpress to implement?

cheers

craig 23. Jul 2008, 6:01 pm

hey

so if i was to set up a diretory i was thinking to add listings as basic without the companies knowledge, then ask them to sign up for a free 3 month expanded listing…then after that i would charge….is listing their company details as a basic listing ie business name address and phone without their consent illigal in any way??

cheers
craig

Steve Sherron 04. Dec 2008, 8:37 am

This was a very good read. You really could tell you put a lot of effort in it. I found your site by typing the following into Google: build a local niche site and then sell it. I tell you that in case you are interested. Thanks for this article.

Joey 23. Dec 2008, 5:33 am

Under your section, “The Process,” you discuss how to setup the site and outlay. However, where do you get the templates for this outlay? Are there premade templates (or Scripts I guess they are called)? Apparently there is a site called biz-directory where you can get these templates, but this site must not exist anymore. I can definately design an outlay that I’d like to use, as you discussed, but getting this outlay in html or computer terms is a whole different ballgame. Where can I get premade templates/scripts?

craig 05. Jul 2009, 10:12 pm

are there any wordpress themes to automate the process more?

are you actively using this method and how much sucess do you have?! (ballpark!)

Stephanie 08. Jul 2009, 4:37 am

Great article here! Very clear and informative; well written and I can see you put a lot of time and effort into it. God job!

Take care.

Todd Jamieson 18. Oct 2009, 3:41 am

I have just started a local website for westorangecountyfl, wocfl.com. I have only attached a local block using drupal. I am now in the process of wanting to setup a local directory, just what Stuart was talking about. I found a few online that will charge 300 – 400 bucks to set up with premium ads and ecommerce set up. Haven’t yet found a free script yet.

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