Comments on: SmallTown Offers ‘WebCards’ Via Google Gadget Ads, Others http://localonliner.com/2008/05/13/smalltown-offers-%e2%80%98webcards%e2%80%99-via-google-gadget-ads-others/ Peter Krasilovsky's Thu, 02 Feb 2012 19:44:34 +0000 hourly 1 http://wordpress.org/?v= By: theodore http://localonliner.com/2008/05/13/smalltown-offers-%e2%80%98webcards%e2%80%99-via-google-gadget-ads-others/comment-page-1/#comment-115663 theodore Sat, 17 May 2008 17:55:53 +0000 http://localonliner.com/?p=763#comment-115663 “With six cities and 300 categories, you can see how it would add up,” says Rucker. Oh dear--are people still talking like this in 2008. It only adds up if you SELL ads, at a cost-covering price (in the thousands of dollars range per advertiser). However, "The bulk of these are on a free tier, but 600 are enhanced customers, paying $50." Wow. 600 ads @ $50 each (!!!) = $30,000 gross revenue after two years? This is lunacy. They are hemoragging money with no prospect of profit in sight. And vcs still fund this stuff? As has been said before, Smalltown took a hyperlocal, "one-off" community "email tree", and basically tried to make money out of it. The phone tree has now lost all credibility (and users), since Smalltown made it so obviously commercial. Now no more useful community resource, and pretty soon, no more Smalltown. Thanks a bunch! “With six cities and 300 categories, you can see how it would add up,” says Rucker.

Oh dear–are people still talking like this in 2008. It only adds up if you SELL ads, at a cost-covering price (in the thousands of dollars range per advertiser).

However, “The bulk of these are on a free tier, but 600 are enhanced customers, paying $50.”

Wow. 600 ads @ $50 each (!!!) = $30,000 gross revenue after two years? This is lunacy. They are hemoragging money with no prospect of profit in sight. And vcs still fund this stuff?

As has been said before, Smalltown took a hyperlocal, “one-off” community “email tree”, and basically tried to make money out of it. The phone tree has now lost all credibility (and users), since Smalltown made it so obviously commercial. Now no more useful community resource, and pretty soon, no more Smalltown. Thanks a bunch!

]]> By: TorreyRussell http://localonliner.com/2008/05/13/smalltown-offers-%e2%80%98webcards%e2%80%99-via-google-gadget-ads-others/comment-page-1/#comment-115177 TorreyRussell Wed, 14 May 2008 19:30:13 +0000 http://localonliner.com/?p=763#comment-115177 Small Town is Small Fry... dead fry. The problem with this plan is it doesn't scale. To make a sales call and collect $50 doesn't work. Not enough revenue. COS to high. Where is the muliplier? Where is the viral? These small businesses will have to be resold each year... one at a time. Try getting them on the phone. Forget it. Too many companies have tried to enter this small town directory business - doesn't make sense. Small Town is Small Fry… dead fry.
The problem with this plan is it doesn’t scale. To make a sales call and collect $50 doesn’t work. Not enough revenue. COS to high. Where is the muliplier? Where is the viral? These small businesses will have to be resold each year… one at a time. Try getting them on the phone. Forget it. Too many companies have tried to enter this small town directory business – doesn’t make sense.

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