Before the presentation of numbers, there’s an important thing to understand about the initial pricing strategy of George Scott Reports. The pricing strategy is based only loosely on the numbers associated with the website.
Sure, that qualifies as a candid admission. However, it is important to understand the philosophy that guides the implementation of the website’s transition to paid advertising.
One of the fundamental flaws of local-based websites is that there is no demonstrable correlation between clicks and visits and page views and all of the internet numbers to a very basic fact: how much business did the advertising produce.
I simply cannot and will not start this advertising component of my website making claims that if you send spend this much money, you will get these many customers. Truth be told, most other website that function at a local level won’t tell you that truth.
So I have shown ‘my numbers’ to knowledgeable people who have helped others in my situation. I have set an arbitrary price based on their good judgment and my reducing their suggestions on my pricing by a lot.
My goal at the outset is to charge an amount of money that will be perceived as both fair and below the market of what others tell me is fair. Then, I want to throw in extra services at no additional costs in proportion to what ad a business client may choose to purchase.
After six months or a year of close evaluation, I’ll develop a rate structure that does everything it can to more tightly correlate money spent on advertising with results at the cash register to the acquisitions of new professional clients by those who do advertise.
Further, I am going to try to do something that I hope accelerates the process of producing results for all my advertisers. I am going to offer retail and service businesses free advertising space for coupons and special offers. Over the course of the next six weeks or so, it is my hope to add some good ‘lost leaders’ of sort that will generate even new interest in my website.
The extras that I am talking about above the cost of advertising placement involves a commitment to publish additional news stories or profiles about those businesses that advertise in the new “Client Services” category on the home page.
It is my hope that I have pegged my opening advertising costs too low and that I have left some money on the table. That really is my goal because I am in this with the intent to be here for the long term.
So here are some numbers taken directly from the ‘analytics’ pages of my website: