How much should you charge for a directory listing 3

How Much Should You Charge for a Directory Listing?

Published on December 18, 2020. Updated on May 23, 2022.

If you're currently running a local business directory website or thinking about starting one, you're probably wondering how much you should charge local businesses for a listing on your site. Pricing is the single most powerful tool available to you as a new entrepreneur in almost any type of business. Even small changes to your pricing can make a huge impact on your bottom line. That's why choosing the right prices is often a difficult decision. Charge too little and you could be leaving money on the table. Charge too much and you might not get any buyers.

Most local directories will charge anywhere from $25 - $100 per month for a listing, with the average price being $50/month.

Keep in mind that the prices you set today may change in the future. As you continue to build customer trust, reputation, and relationships through personalized customer service and brand promotion, you'll be able to increase your prices down the road.

But, you've got to start somewhere, so here are 6 factors to consider when determining how much to charge for a listing on your directory site.

1. Your Local Market

Think about your local market demographics. What is the median income and wealth status of the local population in your area? Are new jobs, stores, and small businesses appearing in this market and have large companies been moving to or setting up operations in your area in recent years? This usually dictates the local market sentiment and the willingness of business owners to spend on business promotion and advertising.

While larger cities tend to justify higher prices and small rural towns typically require lower price points, don't make your pricing decision on this one factor alone.

2. Look at Your Competition

Remember, competition is a good thing – it means that businesses are spending on local advertising in your area. Find out if there are any other existing local directory websites catering to your specific area, and what kind of pricing plans they are offering? You need to position your offerings strategically because customers may compare your plans with your competitors. This doesn't mean that you need to charge the same or less than your competition, it just means that your value proposition should reflect the pricing you choose.

Don't just limit yourself to looking for other directory websites. You should also look at any and all other advertising options locally that small businesses already have, whether it's local newspaper ads, direct mail or sponsorships. Identify how much businesses are currently spending to help you determine appropriate pricing.

3. Assess Your Financial Goals

How much money do you want to make from your directory website? Figure out a realistic revenue number, be it monthly or yearly, and then reverse engineer that number by figuring out how many businesses you'd have to get signed up to achieve that.

For example: let's say you're looking to earn an extra $1,000/month in recurring income. If you charge just $50/month for a listing, all you need to do is sign up 20 businesses. If your financial goals are much higher, you would need to sign up more businesses or you might want to set your prices higher so you can achieve your goal sooner.

4. Consider Your Costs

When determining your prices, it's important to consider both your startup and ongoing expenses. Ideal Directories gives you everything you need to launch a local business directory website for a low monthly fee. However, you will likely incur additional operating expenses like marketing your site.

While there are plenty of free ways to market your site including social media and b2b networking, you may choose to invest in paid advertising as well. Estimating how much you plan on spending on marketing will help you determine what price to charge your customers to ensure that you cover all your costs and make a substantial profit.

5. Manage Client Expectations

It's important to always meet, if not exceed, your client's expectations. If your clients expect to generate a lot of calls or leads from their listing, you will need to charge them more so that you can invest more aggressively in marketing your site. Be sure not to over-promise or overcharge, and then not deliver.

As long you are able to align your pricing with the value your customers are receiving, you will have a satisfied customer base. Happy customers will prove to be most invaluable asset of your business.

6. Your Website Traffic

When you first launch your directory website, you are not likely to have significant traffic, but as you continue to add listings, promote your site and apply some basic SEO techniques, your traffic should increase.

You might want to start with lower prices or utilize coupon codes to keep your prices low when just starting out. However, as your site traffic grows, it will afford you the ability to justify higher prices.

Launch Your New Online Business with Ideal Directories

No matter what price point you choose, the time has never been more opportune to start your own online business with Ideal Directories. You can launch a local business directory and coupon website for your local area and start making money while supporting local businesses in your community. You can work from home, you don’t need any technical expertise, and you can drive solid profits and growth, making it a very compelling opportunity. If you're interested in getting started, click here to sign up or contact us to learn more.
Start a directory website business

Start a Directory Website for Your Town or City with Ideal Directories!

Make money promoting local businesses, coupons & events in your area.
Get Started Now