Flickr picture by Dok1
In my recent travel, I bumped into a couple of young entrepreneurs (early/mid 30’s) who just launched their local search engine optimization (SEO) / search engine marketing (SEM) firm. Very knowledgeable about online advertising, it turns out they’re ex-Yellow Pages sales representatives.
They tell me they quit to create their own company because they were tired of having to sell online Yellow Pages ad products they didn’t believe in. They were reading about Google, Facebook, Twitter and felt the products they were offering to SMBs wasn’t up to par with other online options.
In the last 10-12 years, directory publishers’ sales organizations went through huge changes. Most of the publishers had to go through a re-engineering of the sales personnel ranging from hiring online-savvy sales individual, giving packages to older employees who couldn’t adapt, offering training, training, and more training to the sales force to get them to sell online YP ad products (outside of print) and then a new basket of products that includes web sites, videos, Google AdWords, etc. Huge efforts. But it’s a well-known fact that directory publishers still don’t really like to re-sell third-party branded products like Google AdWords (which partially explains why Google recently launched their own telesales effort).
Thinking about these entrepreneurs, I was reminded of this interview I did with Seth Godin two years ago. Godin had told me “Google is the Yellow Pages” which would make a jump into SEO/SEM natural for ex-YP reps.
And it got me thinking. Smart merchants want to buy smart advertising but the corollary is true also: smart reps want to sell smart advertising. Sometimes it’s print Yellow Pages, sometimes it’s internet Yellow Pages but sometimes it’s Google AdWords. And if smart entrepreneurial reps don’t get the products they think their customers will buy, they might choose to leave and create their own company.
This means two things for directory publishers (and probably for other local media sales forces as well):
1) Sales rep retention might become an issue if publishers don’t properly execute their multi-source product strategy, by offering best-of-breed ad products.
2) This might force them to fully embrace their “one-stop shop for SMBs” sales strategy, without looking back, even if it means selling Google AdWords without any directory component.