Despite the fact they’re doing as many things right as one can expect from a huge Yellow Pages entity, I question whether Dex’s vision of its future aligns with its historical multi-price-point, sales-oriented infrastructure in my latest conversation with Mike Blumenthal.
A sales-heavy organization like DexYP might need a higher-price-point, lower-COGS product mix than Thryv and Ads (more on this below).
Despite the constant stream of surveys where the majority of small businesses inevitably state a preference for working with the mythical “one vendor,” this article is a compelling counterpoint for how dramatically the reality diverges from those surveys. And the fragmentation is only increasing as best-of-breed point solutions rapidly outpace all-in-one solutions.
If you want to be that “single vendor,” ultimately I believe your best course of action is to bundle affordable best-of-breed products that integrate with one another–a bundle which may not be the same for every customer.
Greg Sterling relays an interesting conversation he had with an Ads reseller.
The reseller feels that customer service will be resellers’ differentiator (a statement with which I don’t entirely disagree given Google’s atrocious track record in this area).
But it’s hard to make a profit on customer service alone. At a minimum, Ads will need to be a smaller part of a much larger digital services bundle moving forward, for resellers which want to remain profitable.
In a related story, Tom Waddington is out with a detailed look at the average Cost Per Lead for various Local Service Ad categories.
There are certainly talented agencies that will say “we’re getting much better than this with Adwords,” but I wonder if that’ll remain true as the Ad product gets better, and once you factor in overhead and HR costs that you pass along to small-budget advertisers.
One of the agencies who’s actively building out alternative revenue streams beyond Ads is Local Search Essentials.
Tim and his team were one of the first customers to use our Agency Platform when we released it late last year.
I love his quote: “Prior to Tidings, we did everything we could NOT to offer email marketing to our clients.”
We’re happy to have helped them cut their email production time by 75%!
For a tactical look at how one of our newest resellers pitches Tidings, check out this great landing page by Odysys.
If you might be interested in joining Local Search Essentials, Odysys, Forlight Marketing, and dozens of other Tidings reseller agencies, feel free to start a conversation simply by clicking the big link just below: