The Hidden Value of Directory Listings

I've heard the same arguments made over and over again on virtually all of the Webmaster forums where directory owners mingle with other Webmasters. The argument usually hinges on the SEO value, or lack thereof, based on what the Google algorithm thinks of links in Web directories. Traffic from directories is usually not defended in these debates because very few directories deliver enough traffic relative to other advertising methods to mount a viable defense.

So link value = SEO value + traffic? Wrong.

One very important factor missing in the equation is the value of a new client, supplier/vendor, or business associate. In many businesses bringing in one of any of these could be worth many thousands of dollars.

One example used by a Web directory naysayer was that of an online retailer of "pink flip flops". Of course in that example the value of a new customer that might buy a pair of flip flops might make a listing investment foolish. But, what if a Chinese manufacturer of flip flops browsing the directory after a search led them there found your business? What if you signed a new deal lowering your cost of goods by 20% after frieght costs? What if that same new relationship resulted in a new line of Sunglasses, bathing suits, and beach towels?

You get the point? Benefits of advertising, which is what this IS, can be all but impossible to measure. It's more than pageviews and Web traffic. It's about positioning a business as a leader in it's niche. How often have you visited a Web directory (premium, paid, bid) and NOT seen AliveDirectory there? Are they there because they're BIG or are they there because they're THERE and EVERYWHERE else?

What is the typical budget for Web directory listings? Frankly I don't know, but let's say it's $1000. How many new business relationships does it take to pay for all of these listings many times over? Answer: One or two. Of course if your business isn't there when that prospective partner views the category you lose out and equally as important, your competitor MAY get that new deal.

Business people do find Web directories and they often times dig into the subcategories relevant to their niche. Although they obviously don't always invest in their own listings they likely DO make mental note of the companies they discover and surely visit some of the unfamiliar Websites to size the company up.

How often does this happen? Dunno.

But, as one (self serving :) ) example my BigGuide Web directory is getting over 600 unique visitors a day with virtually no traffic advertising so the traffic is not being PUSHED or unnaturally inflated. Now that may not sound like much traffic to some, but when you step back and consider that most of these visitors are ONE or TWO TIME visitors the potential value of being seen when they dig through "their" category makes these visits a lot more valuable then the same 600 visitors to a daily news site or forum.

My goal here is not to defend Web directories per se because the "link game" was spiraling out of control leading to far too many directories chasing far too many quality Website listings (free and paid). I think the current confusion over the "future of Web directories" will have a cleansing effect on the space and hasten the weeding out process leaving the strong and those with upside momentum and eliminating the weak.

Finally, Web directories are not dead. Even without ANY SEO value companies will continue advertising in directories where they want to be seen. The investment in a long term listing in a Web directory that is maintained for many years remains of value. What value? Depends a lot on the type of business and the ability of that business to convert opportunities into lasting relationships.