In a video I watched recently there was a breakdown of how much a plumbing company had to spend on "marketing" (aka: Google ads placement, Facebook/Instagram) to attract customers and their per-click pay was about 60 USD, they were spending around 16-18k USD per month on online ads to keep the business afloat.
I had no idea that physical small businesses like that needed to spend so much on marketing just to be found.
Its worse if you get bombarded with negative reviews, which is why stuff like yelp holding you hostage is so bad. If you own an independent business outside of marketing, your reputation is everything. Especially now that anyone can blast your name because they didnt like how you said shiboleth or whatever.
So if you have a zillion negative yelp reviews, which you have no idea where they came from, since there's more negative reviews than you've ever had customers, but they want your money to hide them. ;)
Have to seems like a strong phrase. I found my last plumber and window guy on a facebook neighborhood group. Local ads for general services can be quite expensive, but doing some marketing through local groups only costs your time. I can see how driving business though clicks is attractive, but I'd be surprised if there was no alternative.
Have to if you want to scale the business, if you are a sole trader doing small gigs it's probably very achievable to only use local groups. If you rely on people searching for "plumbers in <X> city" while running a small business with some 5-10 folks I don't think you'd get enough work.
You don't want to use a plumber that has scaled their business. That means that they're sending out a new hire to do your plumbing rather than the plumber that originally built the company's reputation.
The best plumbers spend $0 on advertising. They've got enough business through repeat customers and word of mouth to keep their small set of plumbers busy, and they're expanding slowly enough to properly train apprentices and ensure quality.
When I needed an emergency water heater I asked my boss who manages a few of his rental properties. When I needed a new roof I asked one of Facebook/Reddit/Nextdoor. I’d always favor word of mouth recommendations vs advertising.
I don’t think this is true, but I also don’t know anybody way to verify it either way. Enthusiast forums were always a better source, although native ads can mess that up.
But, even if ads are a necessary evil, they are definitely overhead (in the sense that they don’t actually accomplish anything, just influence the decision as to what should be done). Maybe we can define some sort of ad-efficiency metric for an economy; what percentage of the money is spent influencing decisions, what percentage is spent actually implementing the decisions…
Nah I don't think the directories need to be reviewed (except for listings for things that don't actually exist.) Just show the listings in lexicographic order like how phone books worked.
We already have the law as the meta norm. Let law enforcement do its job.
I had no idea that physical small businesses like that needed to spend so much on marketing just to be found.