Attracting advertisers with a non-existent audience

I have plans to launch online a specialised business directory, which
will only be of value and attractive to visitors when enough
advertisers (the businesses in the directory) are onboard in other
words, the advertisers ARE the website content.

It's a chicken-and-egg situation the advertisers need an audience
before they consider including themselves in the directory, and the
audience needs advertisers in the directory in order to visit the
website. I need advertisers to sign up, with the expectation that
there will be a good amount of traffic in the future, because they and
other advertisers can be found there.

So my question is what various methods can I use to convince
advertisers to come onboard, when there is no pre-existing audience?
An analogy would be like - way back in time - how did the Yellow Pages
gather advertisers for their very first edition?

Here are some of my notes and thoughts on how I will try to attract
advertisers to a non-existent audience, to save folks from repeating a
suggestion to me - but any other insights, comments, links to
articles, and/or past experiences of such a venture, would be much
appreciated.

Incidentally, I cannot go into the exact specifics of my venture (i.e.
what sort of industry it is) as I have yet to launch, and as you will
appreciate, I don't want to tip off any potential competitors before
I've even started.

Along with putting together a well-designed / professional looking
website, I'm also currently producing an informative media kit (about
8-10 pages in length.) This will contain facts and figures about
myself, my staff and my company overall and to give advertisers some
demographics of the intended visitors to the site - such as age,
income, location, interests, what they spend their money on etc. In
the media kit, I can also show the various advantages the directory
may have over competing directories (say paper-based ones) and
comparitive costs of advertising.

Along with not having an audience, I also have never produced an
online directory before so I cannot show them examples of previous
successful directories, though I do have proof of past technical
accomplishments. As a programmer, I've had video games published on
various entertainment systems such as the Sony Playstation 2 and
Nintendo Gameboy Advance (and years ago, the Commodore 64 / ZX
Spectrum.) Although my directory has nothing to do with video games,
it may show evidence of the ability to embark upon, and complete a
project.

Initially, I am only making the directory city-wide (with future
aspirations of it going national) so I only need 10-12 businesses in
the city to sign up at first. And once I have a few advertisers
onboard (especially well-known advertisers), the "snowball effect /
herd mentality" may make it slightly easier to convince others to sign
up. The 4th, 5th and 6th advertisers will be less hard to sign up than
the 1st, 2nd and 3rd advertisers.

I can also offer advertisers a monetary incentive, such as "after
launch, your first XXX thousand page views will be free or your
first Y months will be free - a value of ZZZZ" etc.

I don't have much solid evidence that the directory has been
successful in this country just a few isolated experiments by others
in various cities, with no real traffic data. But such a directory has
proven very successful in other countries, and I have to inform the
advertisers that my intention is to translate and repeat such a
success in this country.

I can also provide evidence of my own planned activities to promote
the site. Both paid-for advertising placed by myself and also
potential free publicity after sending out news releases to print,
radio, Internet, and television (though obviously there is no
guarantee of getting a write-up.)

I could try to build an audience (and thus make website attractive to
advertisers), by offering informative content, but I feel I would be
competing against way too many popular websites who already offer the
same or similar content.

The moment an advertiser signs up is when they say "Yes, we would like
to be included in your directory on a temporary trial basis here are
our business details and a logo for you to place on the website." I
will have to make it clear to an advertiser that once they agree to be
included in the directory, they have no commitment or obligation to
continue being in the directory. They can pull their details from the
website at any time, with wording such as "you will be removed within
two hours of the request being made between the hours of 9:00 AM and
5:00 PM, Monday to Friday." This, and other conditions will be in a
short agreement which I am looking for advice on constructing does
anyone know of any templates/samples particular to this situation?

And probably most important of all, I've just to keep at it, and to be
tenacious and focused. I will have to spend many hours a day
contacting/visiting businesses, and to be prepared for rejections.
>From my early testing of the water, I've had plenty of businesses not
replying to my emails and phone calls - but I have found a few
interested businesses, who are interested and wish to know more.

I may have answered many of my own questions in this post - but
hopefully I've provided food for thought to some of those pursuing a
similar venture. Thanks for reading - and thanks in advance to anybody
posting a reply.

Simon.

"SimonC" <google_groups@excite.com> wrote in message
news:cniolr02kt9@enews3.newsguy.com...
> So my question is what various methods can I use to convince
> advertisers to come onboard, when there is no pre-existing audience?

None I can think of, unless you can offer them some kind of guarantee and
free trial period. They must cancel before the end of the free trial, or
they get automatically charged.

> An analogy would be like - way back in time - how did the Yellow Pages
> gather advertisers for their very first edition?

I would guess they didn't have any, or the fact that the Yellow Pages were
promised to be delivered to every home along with the annual white pages
since the original Yellow Pages were owned by the Telco monopoly.

> I don't have much solid evidence that the directory has been
> successful in this country just a few isolated experiments by others
> in various cities, with no real traffic data. But such a directory has
> proven very successful in other countries, and I have to inform the
> advertisers that my intention is to translate and repeat such a
> success in this country.
>

You could offer special placement to the first businesses that sign up in a
particular category. e.g. For the first year, your ad will always be on top
of that section regardless of who else signs up after you. If your
competitor signs up first, he will be listed first for the first year and
your ad would then fall under his. If you sign up now, you guarantee
yourself the top spot.

If there is no existing local directory and your community is wired enough,
eventually, with some other local marketing, you will have an audience.

You will need more than just business listings for content. If you're a
tourist area, some local info will be needed on attractions, annual events,
etc. Free listings for local charities and schools would probably help
attract real estate ads. Show the advertisers that say, "But I already have
a web site." the sites that point out that relevant links to their web site
helps their position in the search engines.


--
McWebber
No email replies read
If someone tells you to forward an email to all your friends
please forget that I'm your friend.

> I have plans to launch online a specialised business directory, which
> will only be of value and attractive to visitors when enough
> advertisers (the businesses in the directory) are onboard in other
> words, the advertisers ARE the website content.
>

Hi,
Since 1997 I've built many online directories. Most were online editions of
printed directories, but some were only online. Most were local in nature,
but also attracted people who were planning to visit the area.

One of the easiest ways to get the project financed is to find a sponsor.
You can't really go the advertising route until you get millions of
visitors. A sponsor is not looking to reach a million people, they are
looking to reach a target audience. After your up and running you can go the
advertising route.

When talking to a sponsor don't get pawned off to their advertising agency.
Agencies are usually only looking for established, traceable, proven places
to advertise. You need to find a person who will help you navigate thru the
approval process. The smaller business the better, so you can talk directly
to the head person, not someone who has to get approval.

Also, think outside of your directory for a sponsor. You didn't give an
example of the directory, but lets say it was a directory for surfing
information. Don't restrict your thinking to surf shops. Consider having a
bank or car dealer sponsor the directory. Maybe a major hotel, phone
company, cable company. Just be sure that you give the sponsor exclusivity.
Only one bank or car dealer. Have them sponsor you for the first year. In
the 2nd year, if they are still interested, they can pay the going rate.

You can also have the sponsors certain pages that is a closer fit to their
target market.

Try to work with a local organization. Offer their members a free listing in
your directory. Offer as many people as you can a free listing. After they
get the free listing you can offer them enhanced listings, more
descriptions, logos, interactive map and such.

You should also try to work with a local newspaper or magazine, trade out
advertising.

These are just a few ideas, not knowing the type of directory it's hard to
give specific advise.

Good luck,
Dave

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I also am in the middle of a launch for a directory site. My approach to
advertisers (directory participants) for lauch has been this:

I have a PROJECTED launch date. I explain that the actual launch is
dependent upon a minumum number of participants being enrolled. This is for
their benefit as well as mine. I'm taking checks for the full year only.
Checks WILL NOT be deposited until 5 days before actual launch. Until that
point, advertisers can back out. 1 year starts on actual launch day. If for
some reason things don't fly, the advertiser gets his voided check returned.
Launch begins with a week long radio blitz on 4 stations, and continued
radio promos and newspaper ads after that.

If it doesn't get off the ground, the advertisers are safe. They are out
nothing.
If I launch, but don't get any more advertisers after my launch target, my
expenses are covered and the site is live for a year. I'm covered, and the
advertiser gets what they paid for.
After such a radio blitz and continued radio spots, I truly believe it will
be successful and a profit maker for everyone.

To date I'm VERY close to lauch target and a month ahead of schedule.



Bottom line, give them some great projected numbers if it succeeds. Be clear
in the target demographics. That's easy. I pull my demo numbers directly
from the radio stations. Make the deal so they can't lose and have
everything to gain. If it has potential to increase their business, you will
find businesses willing to give it a try.