There are two reasons why small local businesses are shifting their advertising dollars online. 

1. It is more convenient to search online for business resources.  The reality is a business web site blows away a static yellow page ad.  It is like comparing a Ferrari to an Edsel.  A web site is much more dynamic.  It is able to offer an endless amount of information and display of graphics and video.  Most important, it is interactive. 
2. The cost to advertise online is considerable less than offline.  For example, in another Borrell study the averge cost per 1,000 advertising impressions online was $3.65, it was $9.35 per CPM for the yellow pages.

Consequently, the future is not looking bright for print yellow page directories Over the next 5 years it is projected that the yellow pages will lose $5 billion in annual revenue.  However, they will probably survive for a couple of reasons.  First, their model can be transferred to the Internet.  Of course, it will much more dynamic with the ability to link to business web sites.  Second, it is estimate there are 13,000 print yellow page salespeople.  These individuals are connected with local business, and have established a degree of trust. 

They are in a position to sell a package of both off and online advertisements.  In fact, they are in a much better position to reach these local businesses in comparison to the giant search engines like Google and Yahoo. 

The battle is currently raging between the search engines and the Internet Yellow Pages for local business advertising.  So far, the search engines are winning, but don’t count out the Yellow Pages.  If the can transition their business they are in a position to be a major resource online.

In a recent survey it was found that shoppers are going to be using the Internet to do more shopping and to search for local businesses.  There are a number of benefits the Internet offers, but one of the most important is convenience.  And for local customers it offers the convenience of finding local products and services from the convenience of their home. 

This growing trend of local customers using the Internet to find local businesses is only going to increase with increases in the cost of gasoline.  Taking a leisurely drive around the neighborhood in a Ford Expedition is now becoming a luxury.  Of course, that will change when we are all driving electric cars, but it is going to take a few years.  For the time being, your customers are going to be cutting back on their driving.  In fact, government statistics show Americans are driving billions of miles less.

So when your customers go online to search for businesses like yours, you need to have a web site that converts them from prospects to profitable customers.  You also need to have a presence in the places where your customers are searching on the Net.  That includes the major search engines like Google, Yahoo and MSN.  It also should include Internet YellowPages, regional resources like the web sites of local newspapers and national local directories like Local.com.  You’ll want a combination of free listing and paid advertising in these different resources. 

With the current state of the economy money is going to be tight and business is going to be more competitive.  However, the Internet offers an opportunity to reach potential customers at a low return on investment. 

The path that most local businesses follow is to hire a web designer and pay for an ineffectual web site that has no traffic.  A web site is worthless if no one every goes to it.  The problem with most web designers, is the fact they are not web marketers.  They tend to be graphic artist with no real experience in converting prospects into customers. 

So if you are a local business and you want to get started promoting your business online, I am going to give you some suggestions that won’t break the bank.  These are simple, do-it-yourself techniques that anyone with a computer can perform. 

1. Free Business Listings - List your business in the local versions of Google, Yahoo and MSN.  All three of the top search engines have a local version of their search results.  It is designed for regional search.  More importantly, it connects local customers to local businesses.  It is free to list your business. In fact, you can list your business, provide a detailed description, add photos, coupons, directions, method of payment, link to your site and email, and customers can click on an interactive map to assist them in finding your business and spending money.
2. Do-It-Yourself Web Sites - Do you know there are services that let you build your own web site for as little as $10 per month.  This is in comparison to paying a web designer thousands.  These content management sites provide wizards that allow you to contruct a web  site without having any knowledge of coding and programming.  You can have a site up in literally a hour. They give you full control to make edits on the fly. 
3. Cost Effective Pay Per Click Advertising - The most innovative form of advertising since television is pay per click advertising.  In a nutshell you advertising on keywords searched in on sites like Google and Yahoo.  You only pay when a person clicks on your ad and goes to your site.  In other words, you pay for results.  This form of advertisements grew from nothing to a multi-billion dollar industry in just a few years.  The reason why - the best return on investment of any form of advertising.  You can start up a PPC campaign within a hour, and can begin with as small of budget as you want.   The strategy is to advertise on terms local customers will search for to find local businesses.  A winning strategy. 

If you are a local business owner and are hesitant to get a presence online, I’ve just given you three reasons to start NOW!  The longer you wait the more you will lose market share to your competitors. 

You can start promoting your local business by going to Google Maps and getting your free listing.  Once you see how easy it is, proceed to list your business with Yahoo and MSN. If you don’t have a site, check out our Local Online Marketing Association Site Builder.  Once you have a site, start a PPC campaign for only $5 at Google Adwords.

It really is that easy to start connecting with your customers online.

Regards,

Fred

Although there are numerous variations of it, most PPC advertising is sold on popular search engines like Google, Yahoo and MSN.com.  When people search for keywords, advertisers like local businesses can insert ads into the results.  For example, if you sell titanium golf clubs in Augusta, GA, you can advertise on the search result, “Titanium golf clubs Augusta GA” on Google.

And why would you want to?  Because someone searching that term is about as targeted as you are going to get in a customer, and you would probably want to connect with that person. 

Now what makes PPC advertising so attractive and potentially profitable is the fact it is a result oriented form of advertising.  You only pay for individuals that click on your ad and go to your web site.  You only pay for results.  You pay a price per click.  That price depends on the competitiveness of the keyword and the position of your ad, first, second, third place, etc.  There are countless other benefits to pay per click advertising.  For example…

• You can set daily expense limits.
• You can start and pause your advertising at any moment.
• You can bid on as many related and targeted keywords as possible.
• You can track all aspect of your campaign, including traffic, clicks, conversion, earning per click, etc.
• You can set up a campaign in less than an hour and have your ads live immediately.
• You can have complete control over every aspect of the campaign, in fact PPC is designed for even novice to build and maintain.

Overall, pay per click advertising can be very cost effective, in fact, it often provides advertisers with their highest return on investment when it comes to marketing.

So this is how companies are scamming local businesses with PPC advertising.  What they do is set up a PPC campaign for you on a major search engine like Google or Yahoo and charge you an exorbitant price.  A price that is way out of line for the services they provide. 

They will charge either an extreme multiple of the cost of the click, like five times as much as you would pay if you controlled your own campaign.  Or they will charge you a flat fee for so many clicks per month. The bottomline is you are paying far and above the going rate for the traffic.

There are companies offering a value added service to pay per click advertising.  In fact, one company will provide you with tracking 1-800 numbers so you can track both phone and web site leads and sales.  However, many companies take advantage of the naivete of local businesses and basically screw them.  Here is a perfect example.  We talked to one individual that got suckered by one of these companies.  She was paying about $1,000 per month for their services.  She had know idea how much traffic she was getting, and where it was coming from.  She did know it was not leading to new customers. 

If your are going to benefit from the incredible opportunities of the Internet, you must be in the know.  Know what the options are, and the going rate. 

If you are a local business owener and have been scammed by unscrupuous Internet marketing companies please provide your story in the comment section. 

Regards,
Fred Waters 

A top ranking is coveted because it can lead to some very targeted and profitable traffic to your site.  For example, if you are a local exterminator business in Raleigh, NC and a person searches for “Exterminators, Raleigh, NC,” it is beneficial if your site ranks at the top.  That person searching is often a ready and willing local customer who has an immediate need.  The kind of customer you want to connect with.

The reality to what is called “Search Engine Optimization” (SEO) is that getting top rankings requires an effort and it takes time.  However, the pay-off can be enormous.

Most local businesses do not have a clue on how to get a top ranking, and consequently are suspectible to unscrupulous individuals that prey on the uninformed.  Usually these scam artists will contact you by spam email or an unsolicited phone call.  They guarantee results and often their costs are reasonable.  However, you are throwing your money away. 

First, there are no guarantees in search engine rankings.  The search engines are constantly changing their criterica for search results.  You could have a #1 ranking on some important keyword search and the next day you could be on the third page. 

Second, it takes time to rank your web site.  If you have a new site, it could take months before you start seeing results.

Search engine optimization is based on two factors:

1. Page Optimization - This is where you write the content of your web page based on a keyword phrase, for example “Exterminator, Raleigh, NC.” This tells the search engines the theme of your web page.
2. External Links - Links from external sites pointing to your site is considered a vote of confidence by the search engines.  Links from sites that are considered valuable resources or are similar to your business or location have added value.

It is more complicated than that, but it gives you an idea of what is involved to rank your site.  

The bottomline is it takes time and effort to rank.  So what the scammers will do it get you ranked for very obscure terms.  For example, they may say type of name of your business and see you are #1.  Well dah!, your competitors are not competiting to rank #1 on your name.  They are competiting to rank on targeted phrases that will bring money spending customers.

Here are a couple of guidelines to follow:

1. Do not hire anyone that is unsolicited through email or the phone.
2. Do not work with anyone that does not have a legit professional looking web site.
3. Do not work with any individuals that make guarantees.
4. Get a list of the company’s existing customers and contact them about their results and how it has interpreted into profitable customers.

It should also be noted that often these SEO scammers use some very questionable techniques to get prominent rankings.  They use what is called “Black Hat” SEO methods that attempt to manipulate the search results.  When  the search engines find sites using these techniques the ban them. 

Search Engine Optimization can be extremely profitable.  I have made millions for my clients and considerable money for myself through SEO, by using methods favored by the search engines.  However, be cautious in your attempts at SEO.  If it sounds to good! Guess what?

When a person lands on your web site, you have seconds to grab their attention.  During this first “impression,” you need a strong and persuasive headline, and when it makes sense, an intriguing photo.  More important is the need for appealing photos in your product pages. 

The Internet is a virtual shopping experience.  People cannot touch, feel or smell a product.  However, with the right photo you can convey the value and benefits of your products.  Because it is all about getting a customer to buy your products or services.

Eisenberg gives an example of a company that sells gourmet fruit online.  They offer exceptional pears.  Most retailers would have a picture of a pear on a nice background with some lighting.  Harry & David take it a step further.   They have a photo of a pear cut in half, with spoon of scooped out pear with juice dripping from it. From this photo your brain can begin to simulate the taste of sweetness from this juicy pears.

Photos can also work with service businesses.   For example, landscapers can have photos of previous projects where they transformed a yard into a garden of Eden.  Exterminators can effectively use pictures of damage caused by termites.  Restaurants can have pictures of their entrees. 

Using photos requires balance.  On one hand, you want it to entice your audience, on the other, you do not want it to overwhelm your message and value proposition.    

Go beyond the boring stock photos so many web sites employ.  Make your photos work for you and distinguish you from you competition.  Let them help sell your business. 

As local businesses begin to market on the Internet, they are becoming easy prey for less than scrupulous web designers and so-called Internet marketers.  In the past, local businesses would advertise through direct mail, newspaper ads, yellow pages, radio and TV.  These advertising options were simple and followed industry standards.

Then along comes the Internet.   Most local businesses would prefer not to deal with the Internet.  It is new and confusing, with numerous options. However, their customers are going online in growing numbers.  It is becoming the media of choice for searching for local products and services.  Therefore, local businesses must have a viable Internet presence to stay competitive. 

So, here is the problem.  Local businesses need to market online to connect with customers.  The Internet and the advertising options are foreign to most local businesses.  And guess what?  There are number of sleazy individuals that are taking advantage of naïve local businesses who do not understand the practical marketing options available online. 

This is the first of a number of posts on Local Internet Marketing Scams.  More will come as I find them.

Scam #1 – Charging a monthly fee for submissions to local directories and search engines.   

There are a number of high-profile web sites that offer free listings to local businesses.  They include Google, Yahoo, MSN, SuperPages and Local.com.  In addition to listing your business name and location, you can add you phone #, link to your web site, email address, and business description.  Some offers interactive maps and coupons, in addition you can provide info on affiliations, hours of operations, forms of payments and product or service details. Also, sites like Google let you add photos. 

Best of all there is not cost.  It just takes some time to list with the top local Internet resources.  There are a number of services that will do it for you. 

Here is where they scam you.  Many charge a monthly fee, as if there is some sort of maintenance involved.  The reality is, once listed, you stay listed.  So paying a monthly fee is like throwing away money.  I’ve found some services charging as much as a $100 per month.  Ouch!

My recommendation is to take the time and list your business yourself.  This way you control the information and will have control over password access.  However, if you want to save time find a service that charges one upfront fee. 

As a member of the Local Online Marketing Association you will find a list of the most prominent local resources to list your business. You can do it yourself and avoid a costly, recurring fee.

Regards,

Fred Waters

The Internet is a reality that realtors can no longer ignore, and search engine marketing is integral part of it. Search has been a defining factor behind the success of the Internet. It is through search that people can find products, resources and information.  Consequently, through search realtors can connect to ready and willing customers who are ready to buy real estate NOW!

Search Engines Deliver Targeted Traffic

What makes search engine marketing so powerful is the fact that your customers are taking the initiative. They are actively searching for real estate and realtors. If you can make the connection, you’ve got yourself a very qualified prospect.

Another reason realtors want to connect with individuals who are searching and researching online. Recent studies show Internet real estate buyers spend twice as much time doing research in comparison to traditional buyers. Internet buyers move more quickly once they select a realtor. With the knowledge they gained from the Net, the buyers spend significantly less time with their realtor and preview fewer homes. Does this not sound like the ideal client.

The real estate industry is on the fore front of Internet marketing. Search engine marketing is the dominant form of promotion online. There are two forms of search engine marketing.

1. Search Engine Optimization - Optimizing your web site so you rank high in targeted searches like “Greensboro NC Real Estate.” Optimizing your web site for free search engine traffic from sites like Google, Yahoo and MSN takes time and requires a consistant effort, but the pay-off can be immense.
2. Pay Per Click Advertising - In conjunction with search, you can advertise your web site for search terms related to your business like “Greensboro NC Real Estate.” As the term “Pay Per Click” implies, you only pay for people who click on your ads and go to your site. You only pay for results.
   In future posts I will discuss these techniques in further detail. What is important is both search engine optimization and pay per click advertising are taking the marketing world by storm. They are the most cost effective means of connecting with real estate customers.

Times are changing for the real estate industry. Customers are going online. For realtors that are able and willing to adjust their marketing to their customers changing behavior, they will reap the rewards. Those realtors unwilling to evolve with the times should consider another occupation.

Fred Waters

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Why would you want to waste your time on SEO? Because it can bring you a constant flow of FREE targeted traffic. In addition, your customers are going online to look for businesses like yours.  In fact, a considerable number of searches on the Internet have a local intent. People letting their fingers do the work before they call or drive to a store or restaurant.  Search engine optimization consists of two elements:

• Optimized pages – Pages that are written based on keywords or phrases. These phrases are terms that are commonly searched by your customers and prospects. For an example, a termite control company in Evanston, Illinois would want to optimize pages for terms like “Termite Control Evanston” or “Pest Control Evanston.”
  
• Linking Strategy – The search engines determine the importance of a web site and the individual pages based on the quality and quantity of links pointing to you by external web sites.   The search engines consider links pointing to your web site as a vote of confidence.  A fair number of links from reputable sites would suggest a strong vote of confidence, and boost your rankings to the top. 

Search engine optimization requires some effort and it takes time, but the results can be immeasurable. I have worked with a number of companies that get the majority of their revenue through search engine optimization. A couple of my clients make millions each year from SEO, while I have made considerable money from my own sites.  The traffic on one of my sites doubled overnight from Google search results alone. 

The good news is at a local level the competition for top ranking is not that intense.  Fortunately, most of your competition does not have a clue on how to get top results.  And that is also true for the web designers they hire.

Keep tuned for strategies on search engine ranking, and learn how to generate an endless stream of new customers for free. 

The problem in the past was the ability to geo-target.  How do you connect local customers with local businesses. That problem is being solved as we speak with a variety of solutions like local search, online yellow page directories and countless local and regional resources. 

It is estimated that local businesses spend upward to $70 billion a year on advertising.  Companies like Google, MSN and Yahoo are coming up with online marketing solutions so they can get a piece of the local advertising pie. 

Your Customers are Searching for You the Internet

Why would local businesses want to market online.  First, and foremost, their customers are going online to find local products and services.  In fact, it is estimated that over 40% of Internet searches have a local intent.  That is over 1 billion searches a month.  Small local businesses can no longer ignore the Internet if they want to stay competitive. 

In addition, there is an new generation that has grown up with the Internet.  When they want to find something they go online, they do not grab the cumbersome and antiquated yellow pages.  As this generation ages and starts having access to disposable income, they Internet is going to be their business resource of choice.

The local Internet marketing wave has already started, and it is more like a sunami.  It is estimated that $12 billion will be spent for local Internet advertising in 2008 - that is a 48% increase from last year.

If you are a local business and are not actively marketing online, yesterday is the time to start.  You need to get a viable Internet presence known as a web site.  It needs to be more than a welcome mat, it should be a customer conversion machine.

Once you’ve set up your site you need to direct to it highly targeted regional traffic.  It is easier then you think, and more cost-effective than most offline advertising. 

Stay tune for future posts where we will look at options for building your web site and marketing it to your customers.  In addition, we’ll discuss ways to maximize the lifetime value of your existing customers through email marketing.

To a Profitable Future
Fred Waters