Google’s $10 local search play
The ever enterprising Google has come come up with a novel way of boosting the information it has about local businesses.
As part of the Business Referral Representative program, Google is offering individuals up to $10 to visit local businesses and tell them about Google Maps and Google AdWords, collect information (such as hours of operation and types of payment accepted), and take digital photos of the business.
The business information and photos will appear on Google Maps. No doubt this effort is part of Google’s assault on the local search market.
“In keeping with our mission to organize the world’s information, we’re always looking for new ways to make that information more universally accessible and useful,” explained Google.
“With the Google Local Business Referrals (LBR) program, we’re focusing our efforts on small businesses across the United States, helping connect them with potential customers in their communities.”
Business Referral Representatives will earn $2 when a business referral is approved by Google, and $8 when an approved business verifies that the information you submitted is accurate. If you’re wondering, Business Referall Representatives are considered contractors rather than employees.
The plan has attracted a mixed response.
Tony Wright at SearchEngineWatch.com thinks it’s a great way for college students to earn beer money:
“If I were a college student, I would say this scenario sounds too good to be true. For a couple of afternoons worth of work, I could make enough money to hit the bar every weekend,” wrote Wright.
“Heck, forget class. There’s money to be made out on the streets, and I don’t even have to do anything illegal.”
On the other hand Donna Bogatin of Inside Chatter believes that the Business Referral Representative Program will go the way Google Answers and Google Video (ouch!).
“Conventional Google wisdom is that the new Google scheme to populate its local search database–Google Local Business Referral Representative Program–at the below market rate of $2-$10 per local listing closed is too good to be true, for the human capital Google seeks to exploit!” wrote Bogatin.
“And, why should Google ‘conventionally’ pay local salespeople a five figure salary, commission and benefits to achieve its goal of dominating the local ad business, when the beloved Google ‘brand’ is all it takes to lure the Google faithful to ‘be your own boss’.”
Clearly whether you see Google’s new program as a great opportunity, or exploitation, depends on your point of view.
Personally I think the key issue is whether “representatives” are simply educating local businesses and collecting information, or if they’re expected to do some selling (as Bogatin suggests). I’ve contacted Google about this, and will post an update as soon as I receive further information.
UPDATE:
Google’s Rob Shilkin told TECH.BLORGE.com that contractors are required to actively identify and contact businesses meeting criteria specified by Google.
“The contractors will leave behind marketing collateral with basic information about how businesses can promote themselves via AdWords,” explained Shilkin.
“They have not been trained on AdWords and have no financial motive to sell AdWords.”
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August 14th, 2007
John, This is not a novel or unique idea. We have an almost identical program for our directory at http://www.gonumber.com. It is limited to certain areas of London at present and both the directory and rep program are in trial mode. Our program is almost identical to Google’s (except we pay more), so I am not sure they can be credited with any originality in this. +44 (0) 7919 055 820.
August 17th, 2007
Of course one of the big questions is how do you know if a business has already been covered. I am sure Google only wants to pay once for a business. If the first lady does not get the business to verify, does the 2nd guy still get $2 to stop by or only $8 to get the owner to fill out the card? How does one know if a business has already been verified? As is typical, the devil is in the details – lets hear the details.