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© 2002 Rank Write Roundtable.


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Money-Grubbing Directories: What's a Small Biz to Do?
By Jill Whalen - January 31, 2002 (From the Rank Write Roundtable Newsletter)

~~~Search Engine Optimization~~~

From: chinook

I have been following a lot of Search Engine Optimization news and articles lately, and it seems to me that of all the offers for me to spend money, it really boils down to about two major engines. Looksmart so I can get a good listing in MSN, and Overture to cover 80% of the rest. We are listed in Google but getting good PageRank has so far been elusive. A lot of authors of stories on search engines casually dismiss inclusion costs as being relatively minor, but being a small business we only have a very limited budget for this kind of thing. For arguments sake, let's say $500 USD is our limit for the next six months.

The question is, how can I most effectively use the $500.00. Your comments are greatly appreciated.

Wolf Leonhardt
http://www.chinook-computers.com


~~~Jill's Response~~~

Hi Wolf,

This is a *very* good question! I've covered the pay-for-placement topic in the past, but not from the perspective of one on a very limited budget.

Let's step back and take a look at the fees involved in having a Web site these days. Gone are the days when anyone could use their free home page space, create their own Web site, rank highly in the engines, and make tons of money without spending a dime.

First, you'll need to purchase a domain name. These have actually come down in price in the last few years. You can register new domain names for as little as $15 per year from places like WebWizards. You can also have your site hosted with your own IP address (which I still consider to be important for search engine optimization purposes) for as little as $20 per month, even less for additional domains.

So, we're already up to $255 per year just to *have* a Web site.

Of course, simply having a domain name and a Web host doesn't actually get you a Web site. So now, you've got to either learn how to create your own site, or you need to pay a professional designer. Back in 1995, one could easily create their own site and it could look just as good as the next guy's (they were all pretty lame). This is not true anymore. Not by a long shot. If you have a business, you *need* to portray a professional image. The Web is one place where even a very small business has the chance to look like one of the big guys. I haven't looked at Web design costs lately, but you can expect to pay anywhere from $200 to hundreds of thousands, depending on your needs. (Don't expect much if you go with the $200!)

So, with design costs added in, we're up to at least $1,000 for your first year's costs, and we haven't even considered your copywriting or your search engine optimization needs. Again, you can do these yourself, and sometimes they're even included in your Web site design; but be careful! Your copywriting and SEO should never be an afterthought. They're just too important to your site's overall effectiveness. You'll need to minimally add another few hundred to few thousand for professional help in this area. Your best bet is to find a search engine optimization company that also specializes in writing search engine-friendly copy.

Okay, back to our original question. Assuming you've done all of the above, what about all the search engine and directory costs? Well, let's see...we've got $299 per year from Yahoo, $299 from LookSmart, that's already over the $500 budget. We've also got Inktomi paid inclusion for $39 per year for the first URL and $25 per year for each additional URL. Plus AltaVista's paid inclusion for $78 per year for the first URL and $58 for URLs two through ten. Assuming you only pay for your main page to be listed in all of those places, we're talking about $715.00 for your first year. Ouch. That's definitely over the $500 budget now, isn't it? (Add that to the set-up and design costs, and it's at least $1715 for the first year.)

When I started my business from home in 1995, I didn't really have *any* costs. That's a major reason why I was able to do it. Would I have spent over $1,700 to start a business when I had no idea whether or not it would work? Being the cheapo that I am, probably not! So I really do understand what you're going through when you're deciding where to spend those precious dollars.

One thing I've learned through the years of running my business is that it takes money to make money. Like when I first bought Web Position Gold. That was probably the first business-related item I ever spent any money on, and I was very, very reluctant to do so. However, once I bit the bullet and bought it, I realized that the amount of time it saved me checking my clients' positions each month was well worth the price of the software. It enabled me to spend that time learning new SEO techniques and trolling for new work. (Ka-ching...add another $149 for the standard version or $349 for the professional version of WPG!) Same thing was true when I signed up with WordTracker (there goes another $198 for the year! Now we're over $2000). WPG and WordTracker are essential tools for running an SEO biz, just as a decent listing in Yahoo and LookSmart are essential to being found on the Internet these days. We can hate it, we can gripe about it, we moan for the "good old days," but the simple truth of the matter is that the free ride is over. Your growing business needs to pay for the bare necessities in order to grow and become viable.

Unfortunately, it's not possible to know what the return on investment (ROI) will be for your directory listings. Some listings will make back the registration fee in the first week. Others may never make it back. There are too many unknown factors involved. Some of these factors include your keyphrases (how competitive they are), your category, the description you ended up with, and how many other sites you're competing with. One thing is for sure: a listing in Yahoo and LookSmart, (also DMOZ), will greatly improve your chances for a high ranking in Google. Major directory listings count a lot towards your PageRank and your overall credibility. So even though you don't actually have to pay to be in Google, paying to be in Yahoo and LookSmart will indirectly help with Google rankings. Because of the importance of a good Google listing, I would have to recommend that you minimally get yourself listed with all three major directories.

As Wolf mentioned in his question, you can get represented in Yahoo via an Overture Pay-Per-Click (PPC) campaign. However, this could potentially cost you more in the long run than a regular listing, and I don't believe that PPC "ads" count toward your PageRank. Plus you have to pay for the clicks forever. Stop paying and you're wiped clean from Yahoo. It's possible to use up $299 in clicks in just a month or less for competitive terms. Still, PPC may be a good way to test what keyphrases people are using to find you, and which ones give you the best ROI. You could run a short-term campaign and use the click-through and conversion rate data to help create the best description once you're ready to pay for inclusion.

There's one piece of good news for my cheapskate peers. If you're really having trouble coming up with all the directory fees, there *is* another way to get into LookSmart that is not very well known. I've told you about submitting your non-commercial sites through Zeal; well, you may not have realized that you can even get business sites into LookSmart through Zeal! The secret is that you can submit the non-commercial area(s) of your site. For instance, if you have informative articles on your site, you can submit these to Zeal. Read through Zeal's User Guidelines and you'll see what I mean. The net effect of this is that your site will be represented in LookSmart, MSN and all the other LookSmart partners out there. How do you think my business site got in?

Good luck!

Jill


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