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My questions are:
Does this type of site ie a directory advertiser led site have a future?
What % advertising renewal rate should I expect to see?
Are there any issues that I should be aware of when buying into a website business?
Any advice will be greatly appreciated.
joined:June 15, 2001
I would say it does. Directories are good for pulling in traffic, they provide content and as a result visitors. The more visitors the more you can make from adverts. It has to be said banners and adverts dont pay as much as they used to, but the directory can be used to get the visitors in the first place. Oce you have the bate to attracs visitors you can add new services such as booking and reservations ect.
"What % advertising renewal rate should I expect to see?"
Not all that pay one year will reniew the following year. It all comes down to what they get from it. If they find it helped their business then they will be fairly likely to reniew the folowing year. It may also come down to a branding issue where companies like to be seen. What you need to do is activly seek new advertisers so you are not relying on renewals.
"Are there any issues that I should be aware of when buying into a website business?"
The first thing I would want to know is why are they selling it. Be sure to get proof od sats, income ect before you buy.
Hope this is of some help.