It is really easy to start a new directory these days, with some amazing scripts like PhpLD, Esyndicat, Site Sift, PhpLynx etc. The best thing being these directory scripts offer free versions which can allow almost anyone to start a web directory easily at no cost other than the hosting (this again can be free).
Now we are here to discuss, what happens to an average guy who plans to start a web directory (wants to really make it BIG and also wants to make some money with it easily) & his journey along the directory market.
Here is the story, I hope you will enjoy it. Let me name this new directory owner who is looking to make a quick buck with web directories as “BigLoser”.
Now BigLoser plan to start a new directory, so he searches for some free directory scripts and also gets in some free hosting from friends, manages to install the directory script. He plans to start a general directory, uses one of the category dumps available online and in 10 minutes, he has a brand new directory ready!
So assuming that he is using PhpLd script, He selects one of the many free templates available online and has a directory ready to be launched. Now our Big.Loser has goes to many directory forums and makes posts that he is launching this directory and the submissions are free. Long before he has finished posting threads on various directory forums, he realizes that he is already getting tons of submissions. Traffic really makes him excited. So he starts working on his directories 4 hours a day.
He submits his site to various other free directories, dying for an approval and that precious backlink. Now this goes on for some days, finally making him realize that out of the 800 submissions he is getting daily 775 submissions are either spam sites, adult content, MFA sites, Casino/Gambling sites or racist material which he cannot approve as per his own TOS. So now he spends around 6 hours/day just in approving submission.
Now he reads on some directory forums, that converting his free directory to a paid directory will result in a fewer number of spam submissions and it is also good way to earn some money. So that makes him convert his free web directory to a paid directory with regular links at $1.00 and featured links at $5.00, only to realize that the traffic on the site has dropped by 90% and also there is an amazing bounce rate. Now since there is really no way of going back. He just prays that he gets a good pagerank so that there will be some featured link submissions to fulfil his objective of making money.
Finally after months of free directory submissions, PageRank updates our Big.Loser and the directory gets a Pr3, which makes him very happy and he is all set to make money. Only to again realize that there are already many PR3 directories, his site lacks custom design, no premium mods. So our Big.Loser now invests arounds $300.00 and gets a cool design and some directory mods installed. Only to again realize that he has no traffic to his directory and there are no featured link submissions coming. Big.Loser ponders that he burnt a hole in his pocket and wasted some really good time and the fact that he could have made at least 100 times the money he has made with his directory, working part-time a pizza parlor.
Many guys planning to start up in directory business have experienced the above scenario and it is really not that easy to make money with directories. It requires a lot of hardwork, link building skills, SEO and also money to invest to build a quality directory or in other words a resource site which is useful for everyone.
I hoped that you liked the article, please post any points that I have missed in the comments. I will update them in the blog post. This post is written with the prime objective of helping new webmasters trying to venture in the directory business with the motive of making a quick buck although it may look really easy.
Amit