Hi Guys, I want to start a small business directory, I want to know Is there demand for the said niche? what kind of traffic I can expect? How easy or hard is it to bring traffic to a directory website?
If you're willing to compete with hundreds of existing directories in that niche, then go ahead fastreplies
I would recommend creating a small business directory for a city, town or region. That way you can combine online and offline marketing. You also can have a more complete directory, since the amount of work required is within reason. Alternately, you can start a niche business directory. Examples might include an online marketer directory, a beer maker directory, or a bicycle enthusiasts directory. What is great about these is you can better target specific keywords for your niche and find yourself getting traffic more quickly. Good luck!
It also depends on whether you are planning to charge. Directories are either traffic driving or just there for the dubious value of the backlink. If Traffic: Why would someone go to a small business directory? If I'm looking for a widget why would I care if the business was big or small? You need to think your business case through. You don't need to be the only directory in the market but you do have plan. After all the directory will cost you time and money. You need a return on that.
There is very interesting thread on the same subject discussed now at http://www.v7n.com/forums/web-directory-issues/225665-can-u-make-any-money-web-directories.html forum you may want to take a look at. fastreplies
I agree with DVDuval - to reduce the amount of direct competition go with either: More specific local or Specific niche (bakeries, etc)