Comments on: Why Directory Sites Are Doing Well As A Business Model http://www.startbreakingfree.com/1270/why-directory-sites-are-doing-well-as-a-business-model/ How to Quit Your Job and Start Your Own Business Thu, 29 Jul 2010 18:11:56 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Homebased Business http://www.startbreakingfree.com/1270/why-directory-sites-are-doing-well-as-a-business-model/comment-page-1/#comment-5310 Homebased Business Sat, 02 Jan 2010 16:48:53 +0000 http://www.startbreakingfree.com/?p=1270#comment-5310 Hi Brad, i am too looking forward to read the essay that you have written. Brian you are really awesome, this post is very interesting from start till end and good for the people like me looking to start own business. Great Work... Hi Brad, i am too looking forward to read the essay that you have written.
Brian you are really awesome, this post is very interesting from start till end and good for the people like me looking to start own business.

Great Work…

]]> By: Brian Armstrong http://www.startbreakingfree.com/1270/why-directory-sites-are-doing-well-as-a-business-model/comment-page-1/#comment-4782 Brian Armstrong Wed, 18 Nov 2009 21:39:26 +0000 http://www.startbreakingfree.com/?p=1270#comment-4782 Most def! Thanks Brad, send us a link to the essay if you get it posted. Wouldn't mind checking it out... Most def! Thanks Brad, send us a link to the essay if you get it posted. Wouldn’t mind checking it out…

]]> By: Brad Durkin http://www.startbreakingfree.com/1270/why-directory-sites-are-doing-well-as-a-business-model/comment-page-1/#comment-4767 Brad Durkin Tue, 17 Nov 2009 21:47:04 +0000 http://www.startbreakingfree.com/?p=1270#comment-4767 My brother's company CampusLIVE.com is exactly this type of business model. Very cool article, it helped me write an essay at Umass... Thanks for the help. My brother’s company CampusLIVE.com is exactly this type of business model. Very cool article, it helped me write an essay at Umass… Thanks for the help.

]]> By: Brian Armstrong http://www.startbreakingfree.com/1270/why-directory-sites-are-doing-well-as-a-business-model/comment-page-1/#comment-4710 Brian Armstrong Fri, 13 Nov 2009 23:38:04 +0000 http://www.startbreakingfree.com/?p=1270#comment-4710 Yep they are quite difficult and hard to find. I think you're right....just get it out there for now. You can always throw more money on it when it takes off. Just FYI, BrainTree Payment Solutions seems to be the biggest guys out there doing direct deposit APIs. But they want to work with companies doing $1m plus in revenue so denied my app. I went with ACHDirect.com after that who kinda sucked but I did eventually get it working. Just some options. Good luck! Yep they are quite difficult and hard to find. I think you’re right….just get it out there for now. You can always throw more money on it when it takes off.

Just FYI, BrainTree Payment Solutions seems to be the biggest guys out there doing direct deposit APIs. But they want to work with companies doing $1m plus in revenue so denied my app. I went with ACHDirect.com after that who kinda sucked but I did eventually get it working. Just some options. Good luck!

]]> By: Ash. Davis http://www.startbreakingfree.com/1270/why-directory-sites-are-doing-well-as-a-business-model/comment-page-1/#comment-4709 Ash. Davis Fri, 13 Nov 2009 23:34:00 +0000 http://www.startbreakingfree.com/?p=1270#comment-4709 Brian- Here's the thing (and a sore spot), the developer that I worked with wasn't able to code a direct deposit feature, so I will have to do all the transactions by hand. Not a problem now, but will become impossible as the site grows. It's not an ideal situation (ok, it sucks), but I plan on upgrading the site anyway once I have established a steady cash flow and have more $ to invest. I followed your advice of just throwing an imperfect product out there just to see if it could work Brian-
Here’s the thing (and a sore spot), the developer that I worked with wasn’t able to code a direct deposit feature, so I will have to do all the transactions by hand. Not a problem now, but will become impossible as the site grows.

It’s not an ideal situation (ok, it sucks), but I plan on upgrading the site anyway once I have established a steady cash flow and have more $ to invest. I followed your advice of just throwing an imperfect product out there just to see if it could work

]]> By: Brian Armstrong http://www.startbreakingfree.com/1270/why-directory-sites-are-doing-well-as-a-business-model/comment-page-1/#comment-4708 Brian Armstrong Fri, 13 Nov 2009 22:44:18 +0000 http://www.startbreakingfree.com/?p=1270#comment-4708 That's really a great point Brian, thanks for bringing it up! hadn't thought about that. That’s really a great point Brian, thanks for bringing it up! hadn’t thought about that.

]]> By: Brian Smith http://www.startbreakingfree.com/1270/why-directory-sites-are-doing-well-as-a-business-model/comment-page-1/#comment-4707 Brian Smith Fri, 13 Nov 2009 12:25:24 +0000 http://www.startbreakingfree.com/?p=1270#comment-4707 The alternative is to create markets by establishing yourself as a middle man. The internet allows for this because you can utilize vast amounts of information - in amounts that were previously unavailable to any one firm - and capitalize upon it at much lower margins. A great example of this is OpenTable. OpenTable created a market for reserving a table. They make a small margin, but scale, allowed by the internet, has allowed for them to turn a profit. In their case, as in the case of Google and many other prolific internet companies, they give away the majority of their services (i.e. they are free to use), but a small amount of users pay to use their services. Only a handful of restaurants pay to be a featured listing, but it is enough to make a profit for OpenTable. Likewise, only a small amount of the companies that appear on a Google search have paid for a spot on Google (through Adwords or the like), but they do it on such a scale that they make more money than nearly any other company in the world. Great article - I just wanted to point out you don't need to simply replace an existing service. The internet allows you to create a previously inexistent market. The alternative is to create markets by establishing yourself as a middle man. The internet allows for this because you can utilize vast amounts of information – in amounts that were previously unavailable to any one firm – and capitalize upon it at much lower margins. A great example of this is OpenTable. OpenTable created a market for reserving a table. They make a small margin, but scale, allowed by the internet, has allowed for them to turn a profit. In their case, as in the case of Google and many other prolific internet companies, they give away the majority of their services (i.e. they are free to use), but a small amount of users pay to use their services. Only a handful of restaurants pay to be a featured listing, but it is enough to make a profit for OpenTable. Likewise, only a small amount of the companies that appear on a Google search have paid for a spot on Google (through Adwords or the like), but they do it on such a scale that they make more money than nearly any other company in the world.

Great article – I just wanted to point out you don’t need to simply replace an existing service. The internet allows you to create a previously inexistent market.

]]> By: Brian Armstrong http://www.startbreakingfree.com/1270/why-directory-sites-are-doing-well-as-a-business-model/comment-page-1/#comment-4704 Brian Armstrong Fri, 13 Nov 2009 03:10:56 +0000 http://www.startbreakingfree.com/?p=1270#comment-4704 Yep I think that might be perfect model for your site, even though it didn't work as well on mine. Different businesses, and you're dealing in physical goods. Did you get direct deposit setup or how'd you structure the billing system? Yep I think that might be perfect model for your site, even though it didn’t work as well on mine. Different businesses, and you’re dealing in physical goods. Did you get direct deposit setup or how’d you structure the billing system?

]]> By: Ash. Davis http://www.startbreakingfree.com/1270/why-directory-sites-are-doing-well-as-a-business-model/comment-page-1/#comment-4703 Ash. Davis Fri, 13 Nov 2009 02:43:01 +0000 http://www.startbreakingfree.com/?p=1270#comment-4703 Hi Brian, It works like Etsy, Ebay, or any similar marketplace site. I receive a small listing fee for each design that is posted on shirtjax, and I get a tiny percentage of each sale through the site. I started with $.50 listing & 4.5% "commission" (for lack of a better word)- which amounts to only $1.40 for a $20 t-shirt. I liked the split testing you did with UT.com, so I will continue to make adjustments and see what works. & thanks! Hi Brian,
It works like Etsy, Ebay, or any similar marketplace site. I receive a small listing fee for each design that is posted on shirtjax, and I get a tiny percentage of each sale through the site.

I started with $.50 listing & 4.5% “commission” (for lack of a better word)- which amounts to only $1.40 for a $20 t-shirt. I liked the split testing you did with UT.com, so I will continue to make adjustments and see what works.

& thanks!

]]> By: Brian Armstrong http://www.startbreakingfree.com/1270/why-directory-sites-are-doing-well-as-a-business-model/comment-page-1/#comment-4699 Brian Armstrong Thu, 12 Nov 2009 21:38:08 +0000 http://www.startbreakingfree.com/?p=1270#comment-4699 Shirtjax looks really well designed Ash. Curisous, how does you business model work? Shirtjax looks really well designed Ash. Curisous, how does you business model work?

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