Better revenue model for local online business directory


I am starting a new startup that operates a local online business directory where you can find businesses (much like or I am divided between the two revenue models:

  1. Businesses pay weekly for their business to be featured on the front page.This will probably be more expensive than the second model just because of scalability. Scalability is my primary concern with this because I can only feature so many businesses at one time.
  2. Businesses pay monthly for a premium business account which will allow for more features on their business page and will take off all ads on their business page. I'm leaning towards this because I make money both off the ads on the page if they don't pay for premium and make money when they go premium.

Should I use revenue model 1 or two (or both) for my startup? Or should I should I use something else entirely? Thanks for all help!

Strategy Monetization

asked Jul 23 '12 at 10:37
Jacob Hart
6 points
Top digital marketing agency for SEO, content marketing, and PR: Demand Roll

1 Answer


I think you should probably have a combination of the 2, or more likely look at what a few others do now.

  • Premimum features like a product showcase etc for $1-3 per month for a pack of features. Have a look at the LinkedIn Profile extensions for a good list of possible extensions.
  • Advertising. Not so much "front page" but premium search results, like google, top of search results, side bar of search results. All paid for all based on buying specific keyword combinations. Its a proven model.
  • Other models which could work include charging for making an appropriate connection. If you can get paid for creating a short list for either the customer or the supplier ... you have a viable premium service business model. eg. asking suppliers to quote on a job. That is a reason for being on your directory in the first place.
answered Jul 23 '12 at 15:41
Robin Vessey
8,394 points

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