Setting Up a Business Directory..

mattjacobs

Hello all,

I am looking to set up a local business directory where I will take on a select number of each trade to be listed on my website. They will pay a small fee for this.

I was hoping to sell my listings through telemarketing from which I would take payments over the phone.

Does anyone have any idea of what laws I need to be aware of to do this? And what I may have to put in the terms and conditions?

thanks!

p.s not sure if I have posted this in the right place! sorry!

googler

How much extra business will you generate for these businesses? What would you say that would convince them to list their business on your site, as opposed to the established ones such as Yell and Thomson Local?

If they have their own websites already, google will be the public's preferred way of finding them, I'd suggest.

I_have_spoken

>any idea of what laws I need to be aware of to do this<

Unfair Contracts Terms Act 1977
Data Protection as you'll be capturing peeps payment info.
Distance Selling Regs.

Also, need to take TPS data for folks who've opted out of telephone cold-calling

BTW, Yellow Pages is almost bust, so I don't think there's any money it your idea

debitcardmayhem

I hope you comply with the telemarketing rules about cold calling too (in the UK) and as such you subscribe the TPS system and whatever it is called for text messaging/mobile phones. Mind you the regulators in the UK are as much use as a chocolate teapot :mad:

mattjacobs

thanks for your replies guys! I was going to do all the payment through paypal. Do you think I would need to set up an online directory like this as a business? I have tried looking at other small local directories online but I can't seem to find any terms and conditions on a lot of the websites!

Matt

macman

And how will the advertisers' potential clients be driven to your website in the first place?

Lagoon

Personally, I don't think this is a good business idea. Unless you have a unique selling point and a way to get visitors to your website (which won't be easy), you're not going to find many people happy to be listed on your website.

Directories are dying, and people don't respond well to cold calling by random 'small-time' directories that they've not heard of.

paddyrg

mattjacobs wrote: »

...Do you think I would need to set up an online directory like this as a business?

It *is* a business. You're asking if you should do it as a sole trader or limited company I suspect? Post your business-related questions in the Small Biz forum here, you'll get straight talk.

However, the idea sounds like a bit of a dud to me. Why would a business pay you for a listing (I assume you haven't got a track record you can show)? Why would anyone turn to you as opposed to Thomson, Yellow Pages, Google, etc? You'll need really good answers for these questions or just find you're going to spank a load of time and effort on nothing!

_Andy_

Not going to happen.

Directory market is saturated and you'll have no way to compete with the big established players. Cold-calling people isn't going to work as you won't even have a decent product (at this stage at least) to offer. Never mind the fact that they will probably be savvy enough to know there's many big names out there anyway.

It's great that you've got ideas etc but I'm afraid this one is a total dud.

mattjacobs

I have this far sold 7 leads for £99 in 2 weeks since I set it up. This is only from emailing too so I definitely see potential. The difference with my directory is that I will only list 5 of each trade in each area meaning the businesses seem to want to get in there quick. I just wanted to know before I start telemarketing if there was any laws I should be aware of!

Another good selling point for my directory is the mobile app I have created for it too which a lot of other directory's do not have! (sorry, maybe should have given a better idea in my original post)

JuicyJesus

The issue is that you don't have a revenue stream, you'll have a one off source of revenue. As soon as you have five of every reasonable trade, you will have exhausted any revenue opportunities but still have to maintain the website, maintain the content...

Put it this way, there are probably 20 or 30 plumbers round here, by selecting 5 you make £500 a year who may not be very good thus tainting the rest of your directory by association, charitably assuming you charge for renewal each year. So let's think: plumbers, electricians, gasmen, builders, gardeners, removal men, man-with-a-van type services... so, seven business categories, you'll make slightly under £3500 a year.

As a side business, that's probably quite good, although you'd probably make more money working a couple of hours as a shelfstacker every evening - as a main business, unworkable.