Answers

Are paid directory listings worth it for a small business?

Sometimes, but judge each one by the inquiries it actually sends, not by what the salesperson says. A paid listing usually buys a better spot or a fuller profile on someone else's website. Start with the free version where there is one, record where every inquiry came from, and renew only if paid jobs arrive from it. Be wary of long contracts, promises of a top spot, and any "free" listing that later comes with a bill.

What the money usually buys

  • A higher position or a highlighted badge inside that directory's results.
  • A fuller profile, with more photos, more text and a link to your website.
  • On some directories, leads passed to you, sometimes shared with several competing businesses.
  • Sometimes, fewer rival ads shown on your own profile page.

Judge it by inquiries, not views

Directories often report views and clicks, which are easy to make look good. What matters is how many inquiries arrived from the listing, and how many became paid jobs.

Ask every new customer how they heard about you and write down the directory's name. After a few months, compare the jobs it brought with what the listing cost, using what a customer is worth to you. The related answer on how to set up a simple lead tracker covers the record itself.

Free first, then paid

Many directories offer a free basic listing. Try that first. If the free version sends no inquiries at all, paying for a better spot often will not fix it, because few of your customers may use that directory. If it already sends some good inquiries, a paid upgrade is easier to test, since you have a starting point to compare against.

Red flags before you sign

  • A contract of a year or more that renews on its own unless you cancel in writing.
  • Promises of a top spot or a set number of leads. A directory cannot control what customers choose.
  • No clear answer on what happens to the profile, its photos and its reviews if you stop paying.
  • Pressure to decide on the first call, or a "today only" price.
  • Reports that show views and clicks but never inquiries.

The FTC's warning about "free" listings

The Federal Trade Commission's July 2023 guide for small businesses warns about "a listing in a phony business directory", sometimes pushed with a recording of an earlier call, and suggests asking staff to check all invoices closely. The related answer on how to spot spam and scam inquiries covers the rest.

Sources

  1. Federal Trade Commission, "Scams and Your Small Business: A Guide for Business" (July 2023)

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