The Side Hustle Show: Episode 647 – How to Start an Online Directory as a Side Hustle

Release Date: December 19, 2024

Host: Nick Loper of Side Hustle Nation | YAP Media
Guest: John Rush, Directory Building Expert

Introduction

In Episode 647 of The Side Hustle Show, Nick Loper welcomes John Rush, a seasoned expert in building and marketing online directories. John Rush shares his extensive experience in launching over 30 directories in the past year, successfully monetizing a dozen, and even achieving a five-figure exit with his directory-focused venture, GPTs Co.

Why Online Directories Make Excellent Side Hustles

John Rush begins by emphasizing the growing scarcity of attention as a valuable resource in today's digital landscape. He explains that online directories can effectively capture and retain this attention by offering curated, trustworthy lists in specific niches.

John Rush [00:55]:
"The most scarce resource of the future and today is attention. And the best way to win attention is to see what people search for and then have your products and services showing up on the search results."

Rush posits that as AI-generated content becomes more prevalent and potentially less trustworthy, users will increasingly seek out directories curated by knowledgeable individuals or teams. These directories can act as specialized search engines focused on particular topics, thereby becoming trusted sources amidst the noise.

SEO and Discoverability Challenges

Nick Loper discusses the traditional reliance on Google for traffic and how this has posed challenges for side hustlers aiming to establish themselves as go-to resources. He questions whether SEO remains a viable strategy for driving initial traffic to directories.

Nick Loper [02:25]:
"Are you finding success still marketing through SEO, still finding, you know, that initial, you know, know, like and trust factor through and discoverability through Google it's getting."

John Rush responds by highlighting a shift in SEO dynamics, where directory websites are increasingly favored over SaaS projects that traditionally relied on blog-driven traffic. He notes that directories align more closely with user search patterns, especially when people seek comprehensive, curated lists.

John Rush [02:25]:
"Harder and harder for SaaS projects and it's getting easier and easier for directories because... people search for directories for places where they can have this rich type of content."

Generating Directory Ideas

The conversation shifts to brainstorming techniques for identifying viable directory niches. John outlines two primary methods:

1. Leveraging Expertise: If you possess deep knowledge in a particular area, you can create a directory around that specialty.
2. Analyzing Search Behavior: Utilize tools like Google, Quora, and Reddit to discover what people are searching for and identify gaps where a directory could provide value.

John Rush [07:24]:
"There are two ways to come up with ideas. So one way is if you're an expert in something and you know something really, really well... the best way is to go and check on Google what people are searching."

He advises against targeting overly competitive niches with little differentiation. Instead, focus on areas where there is a diversity of responses or higher commitment decisions, such as high-ticket services like solar installations or specialized podcast editing services.

Building and Curating the Directory

John Rush emphasizes the importance of domain name selection, recommending short and memorable .com or .org domains to enhance trust and traffic.

John Rush [49:39]:
"The shorter the name, the higher is the traffic... So don't do the best places to go and eat sushi. Like that's too long."

Once the domain is secured, choosing a no-code website builder is crucial for efficiently setting up the directory. Rush recommends using specialized tools like his own Unicorn Platform, which is tailored for directory creation, or other platforms like Webflow, Wix, or WordPress.

John Rush [19:42]:
"I use my own unicorn platform... but other builders are also capable of that."

Data Curation Process:

Effective data curation is the cornerstone of a successful directory. Rush advises:

1. Initial Manual Collection: Start by personally gathering and vetting the first 50-100 listings to understand the process and ensure quality.
2. Outsourcing: Once the criteria and process are well-defined, delegate data collection to freelancers or use scraping tools, ensuring thorough verification and consistency.
3. Focus on Quality: Avoid cluttering the directory with outdated or irrelevant listings. Maintain freshness by regularly updating content and removing obsolete entries.

John Rush [22:36]:
"It's not necessarily about building out the yellow pages with like every single business possible. It's like trying to curate the best or the most active."

Monetization Strategies

John outlines several avenues for monetizing online directories:

1. Sponsored Listings and Ads:

   • Sponsorships: Partner with businesses willing to pay for featured placements.
   • Advertising: Sell ad space to companies targeting the same audience.

   John Rush [10:15]:
   "With affiliate links, you can make some money, but it's really hard because you're competing with all the listicles... but if you target high tickets... you can monetize that really, really well."

2. Affiliate Marketing:

   • Incorporate affiliate links within listings, generating revenue from commissions on sales or leads.

3. Freemium Models:

   • Offer basic directory access for free while charging for advanced features, such as detailed information, premium listings, or additional data points.

4. Data Sales and Lead Generation:

   • Sell aggregated data or generate high-quality leads for businesses, especially in high-ticket niches like solar installations.

John Rush [46:24]:
"You have to gamify so that people get some value out of your directory for free... Interface and functionality can encourage users to upgrade."

Marketing and SEO Techniques

Beyond SEO, Rush underscores the necessity of actively promoting the directory to build backlinks and enhance visibility:

1. Engage in Online Communities:

   • Participate in platforms like Reddit, Quora, and social media to answer relevant questions and subtly promote the directory.

   John Rush [36:59]:
   "You can go to Reddit, you go to Quora, you go to social media... you place your URL there."

2. Content Creation:

   • Develop complementary content, such as blog posts or tools, to drive additional traffic and establish authority.

3. Backlink Acquisition:

   • Encourage natural backlinks by providing valuable resources that others in the niche would want to reference.

4. Tools and Utilities:

   • Create simple tools related to the directory’s niche to attract users and generate shareable content.

John Rush [43:57]:
"For example, I built this tool to test a website for broken links... AI makes it easier to run directories because AI can normalize the data."

The Role of AI in Directory Building

AI plays a significant role in enhancing efficiency and data management within directory projects. John explains how AI can:

• Normalize Data: Automate the categorization and standardization of listings.
• Enrich Content: Generate consistent descriptions and extract key properties of listings.
• Assist in Research: Help identify new listings and relevant information swiftly.

However, Rush cautions against over-reliance on AI, noting that it can lead to uniformity. To truly stand out, human oversight is essential to infuse directories with distinctive insights and maintain high-quality, differentiated content.

John Rush [33:56]:
"AI can normalize the data... I don't want to use AI too much. You have to run the show... you have to not average."

Challenges and Common Mistakes

John identifies several pitfalls that new directory builders should avoid:

1. Long and Complex Domain Names:

   • Opt for short, memorable names to enhance traffic and trust.

2. Lack of Depth in Curation:

   • Providing superficial listings without meaningful descriptions or categories undermines user trust.

3. Ignoring Competitive Analysis:

   • Misjudging the competitive landscape can lead to targeting oversaturated niches.

4. Neglecting Continuous Improvement:

   • Failing to regularly update and enhance the directory results in stagnation and loss of relevance.

John Rush [50:04]:
"Don't do the best places to go and eat sushi. Like that's too long."

5. Underestimating the Effort Required:
   • Building a great directory demands significant time and dedication beyond the initial setup.

John Rush [56:05]:
"Enjoy the process, not the outcome because it takes way longer than anyone expects."

Final Tips and Takeaways

John Rush's Top Advice:

• Enjoy the Process: Focus on learning and gradual improvement rather than instant results.

  John Rush [56:05]:
  "Enjoy the process, not the outcome because it takes way longer than anyone expects or anyone says."

• Continuous Learning and Improvement: Treat directory building as an ongoing effort to enhance quality and relevance.

• Leverage Automation Wisely: Use AI to assist but ensure human input to maintain uniqueness and high standards.

Nick Loper's Key Takeaways:

• Niche Research First: Identify and validate directory ideas based on search behavior and potential monetization models.
• Speed of Execution: Launch quickly to validate ideas, then iterate based on feedback and performance.
• Differentiation is Crucial: Avoid being average by infusing expertise and unique insights into the directory.

Nick Loper [53:35]:
"Easy to build, hard to make it great."

Conclusion

Episode 647 of The Side Hustle Show provides a comprehensive guide to launching and managing successful online directories as side hustles. John Rush's expertise offers valuable insights into idea generation, building, marketing, monetization, and the strategic use of AI. The episode underscores the importance of quality, continuous improvement, and strategic differentiation in creating directories that not only attract traffic but also sustain long-term success.

Resources Mentioned:

• Unicorn Platform: johnrush.me/unicorn
• Directory Guide: johnrush.me/directory-guide
• Founder Guide: Upcoming resource from John Rush
• John Rush's Website: johnrush.me

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