The power of your competing with your friends for trophies has been a force since man first evovled from ape. Whoever killed the biggest animal fed the most people, and gained fame throughout the land. Today there are many trophies, many competitions and most of us have a bunch of friends. In today’s world of hyper connectivity, we can stay in touch with friends and acquaintances just as if they lived across the hall. This leads us to follow our innate competitive instincts and make a bunch of stuff over which we can compete peacefully. In this hyer-connected world, we have many examples of how games and trophies become popular, sought after and create successful businesses. The NFL is based on competition, Major League Baseball, UEFA,  The Olympics, all multi-billion dollar businesses built around the peaceful exploitation of competition.

But there are other levels of competition, ranging from who has the nicest car, to who has the most followers on Twitter. Us crazy people spend hundreds of hours, thousands of dollars and massive resources to win the imaginary trophies that the world offers to us. But alot of these games are fun, meaningless ways to interact with your friends and associates. Zombie Toss on Facebook, ReTweeting and now the ultimate example - Foursquare.

Foursquare captures all the potential of Twitter, and makes a fun game around who can go to more places and “check in” You can become the mayor of your favorite coffee shop, win badges for hitting multiple spots in a night, and show off your badges to all of your hermit friends. The intriguing game of checking in and badges is only the front of what could become a brilliant business idea, and I believe will capture the potential value of twitter to many of the small businesses staring aimlessly at a little baby-blue bird.

What Twitter first started out as, and what got me intrigued was the ability to broadcast where I am, to the people who cared. Now Twitter has become much more than that, but Foursquare takes that fundamental use-case, and makes a fun game out of it. It tracks and records where I go, how often I go, and withwhom I go (of course, only when I tell it). This information is absolutely invaluable to small businesses. Deli’s can learn their customers favorite sandwiches, discover problems in their offerings, and find out who their best customers really are. Then they could be able to send out offers to those customers who “checked in” They could build an email database to lure those customers back in. There are so many business applications to Foursquare, so many more obvious ones than for Twitter itself, I would buy Foursquare if I were Twitter - like tomorrow.

Foursquare is a fun application that takes human nature’s desire to see their friends and show off their trophies and turns it into a desire to go out more, tell the world where they are and win some meaningless badges. But all that adds up to great data for small businesses, great marketing opportunities for those businesses and a whole bunch more percieved immediate value than simple twitter feeds (to small businesses). Instead of trolling through twitter searches, I can just go to my business page on Foursquare and see what people are saying - and who’s coming.

I have several great takeaways from Foursquare’s app, but really its fun and it makes me want to go out more so I can check in again. Who doesn’t like badges?

A lot of people wonder how Twitter is going to make money. They certainly have alot of options considering the mass of loyal users they have, but choosing the right one will be key to them transistioning from a cool tool, to a useful and sustainable product. I believe that Twitter will have to charge its users to use it, at least business users (companies) and that Twitter will grow into more of a utility than an application. Just like telephone lines.

Roughly 134 years ago, Bell and Watson struck a chord across some wires and invented the first practical use of the telephone. It would revolutionize the way people communicate, making the world smaller, in an instant you could speak to someone on the other side of the earth. (of course they still had to build that network..) But here we have twitter, and it provides the same type of utility that phone lines do, or email. It is revolutionizing the way people are communicating with each other, only this time - the network (the internet) is already built.

In creating their new Twitter 101 guide to using twitter for businesses (http://business.twitter.com/), twitter is taking its first step in the direction of charging businesses to send specials and deals out to their followers/customers. And that makes sense, particularly if they begin to implement freemium upgrades, additional features, and perhaps guidance and service upgrades for small companies.

The freemium model has worked online for years now, and many of the most successful companies use it to lower their customer acquisition cost to near zero. Its an interesting idea for Twitter, I’m looking forward to seeing how they execute. I know for a fact that, and I’ve seen it first hand across several dozen small businesses - Twitter offers a great service to gain and bring back your customers quick and easy. And thats something worth paying for.

There has been a lot of chatter about local business data recently in the local blogosphere. (Here and here ) I’m in the business of local business data and I agree it sucks. I spent this week at Search Marketing Expo attending sessions from some of the best in the business and the search engines themselves. And what I realized is that everyone is just trying to create a technology that will eliminate personal interaction and direct updates.

There is no one size fits all anwer to the local data question. How do local businesses represent themselves online. Well first you need to educate them on why they should be online. (here’s a good resource for education) If they know they need to be online chances are, they don’t know where to start. They don’t know where to start. Some have ideas, some have misgivings and some are misguided. One of the biggest problems I find is that there were people that came to them in 2003 and told them they were the next big thing. Small businesses paid up and never heard from these guys again. They are weary and rightfully so. Today there are about a hundred local search options out there, thousands if you incorporate all the offline media they could be buying.

The real query that hasn’t been indexed is how do you gain trust, build a really SOLID local business database and make money while doing this all. Not an easy question. Automation is nice, but you aren’t going to get a bar owner to self-service, not in 2009, maybe not in 2012 - maybe not for along time. The issue is time and ROI and trust. Small businesses don’t want to waste their money on advertising, but they know they need to advertise so they are willing to do that. What they really don’t want to waste is their time.

So if you are venturing into the local search space, you need to recognize one thing. These guys are busy and they are afraid to try new things. If there is one thing thats on our side though, its the fact that they can’t keep justifying increasing print rates with declining circulation and escalating printing costs. So they are going to have to try new things. Alot of companies charge for customer support, so why can’t you? Because you don’t have it.

No algorithm will ever replace handshakes and personal contacts. Walk your prospective clients through your product, educate them on why its valuable and you’ve got a client. Give them a self service portal that injects their business into a Live Nation infested noise fest, they’ll never take action.

Moral being, talk to your customers.  Be there for them. The web is strange enough for these old tymers don’t be a full voicemail box and an anonymous email. Be a person, don’t forget - they’re people too.

Today was a very exciting and exhausting day. Introducing some new people to the site, adding some great people to the team. Its amazing. Welcome to 2009.

I have an interesting perspective on what I’m doing. I learned my tricks from battling in the streets. When I first started I walked the streets with a blue  paper folder (the kind with the pockets), print outs from Word with a description of my new website.

“Thats, great kid. Let me know when someone else is on it.” - Ok

I learned that small businesses don’t really care about the internet. They dont care about SEO, they don’t care about fancy algorithms and pre-roll ads. They care about getting customers in their door and making them happy. I learned quickly that if you can make marketing easy for them they will listen. I learned that if you could show them new customers at a lower CPA than the local paper, they would not only listen - they would buy.

I have great idea’s everyday, I have a really great idea in my head right now and I know its 6-10 months away from happening.  In the past few weeks I got my girlfriend to start blogging, I think she finally understands how Twitter is cool and she even set up and iGoogle page this weekend. My parents have a computer in the kitchen (you have no idea about my parents - whats facebook?). People are using the internet to find things they need. - But of course they are Jamie! - Yes, but now they’ve realized they can find all kinds of crazy things they need on the internet easier than with their (insert non web-based tool). There are so many great things to do out there, the internet is going to explode when this economy recovers.

People aren’t leaving their neighborhoods like they used to. And if they are they are planning their trip from their desk, via the internet. They are searching for local businesses, for location specific activites and destination related things to do. This is what we mean by local. This is why Google introduced its OneBox (those bastards!) and its why everyone and their mother is started the latest and greatest local search site.

Well I didn’t figure out local was cool last quarter. I didn’t notice people were starting to ramp up local searches in June, not even of ‘07. I’m not telling you 2009 is going to be “the year of local” [trumpets sound]. But I am loving it. Loving the buzz, loving 2009 trend predictions from J.P. Morgan and Barclays. Loving the fact that a small company from Boston is dominating a huge billion dollar company with an almost identical name because its thinking small.

I’ll leave you with this, because you’re probably in the same game I am somehow or another. So cheers:

Internet activity continues to increase as the medium plays a more significant role in people’s lives, and this increased usage and dependence should leave Internet companies well-positioned when the macro environment improves.

- Barclays’ Doug Anmuth

We are working on developing an entirely new pricing structure, from the sales materials to the training to the handling of new and recent prospects to the web architecture that facilitates it. Whole new focus, which I’m very excited about. So far this month its taken on very well.

What I’m curious about is how other companies my size are handling the current economic climate. From a general downturn, to the burgeoning online economy. I’ve been hearing alot about some other startups in our field and laugh and wonder about some of their statements.

There’s alot going on in the local search market, and its only going to get more packed. Its a very exciting time to be involved in local, and we are getting after it.

Time will tell who will make it to the “next level”

Local search is entirely too fragmented.

Searching for a restaurant can be time consuming, boring, and down right frustrating. Local guide sites are just not up to speed with the pace of the internet, and many are way behind. I want to find menus, dress codes, price ranges, and interior shots of potential restaurants.

I am planning a trip with my girlfriend to visit my grandmother in Wilmington, NC. Now I wasn’t expecting much of a restaurant guide, but even so I was disappointed. There is no concise guide, there is no focused listing page. Different sites had different listings for the same restaurants - it was a disaster. Of course Wilmington is not the social capital of North Carolina, but it is home to about 65,000 people. What do these people do? There wasn’t anything resembling a thought out online guide to things happening in the area.

Of course this is what I do for a living so I can be picky.

Our next stop on our road trip, my birthplace, Hilton Head Island, SC. There was a glimpse of hope here as we found one site - hhidining.com. Upon closer inspection this was merely a half baked attempt by a local magazine to transition online. It succeeded about as well as anything done half heartedly usually does.

Here lies the fundamental problem, how do we aggregate all of the local information that is scattered across different mediums, in a variety of locations on and off the web, all across the country. Local is so fragmented and there is only so much you can do using a nationally built database of local businesses (see any form of online yellowpages) and there are several companies that focus completely on syndicating their local information.

Second to the fundamental question (how do we aggregate), how do you monetize this information effectively. Do you use a local salesforce, in the streets calling on these businesses? Or do you attempt to build traffic organically and use advertising and lead generation/affiliate programs to produce revenue? Well we’ve seen several companies (read: any version of the yellowpages) try to use the latter method (search for local restaurants and you will more often than not find Chili’s and other franchise ads). They serve large, intrusive ads all over the page, and generally do an ok job of listing local restaurants. Out of date listings often find their way into these pages.

There are very few businesses focusing on local search in mid-size markets. But is this because the markets are not ready for local online? Possibly, however I don’t believe that to be the case. I believe it is the issue of local businesses (existing media entities - mostly print) not understanding the value of local search. How do local papers leverage the value of their online properties? Most often, simply not well.

The point to this ramble is a basic question: What is holding people back from expanding into all of these untapped markets? There is surely value here, and eyeballs from these captured searchers have inherent value of there own. Small businesses are now craving concise online guides to their small cities, more and more businesses are transitioning their ad budgets online, and there are more internet users than ever before. But who is to create these guides and profit from their value…

The latest question I’ve posed to myself and my company, What Do SMBs - Our Customers need? There are many answers, but there are only a few that we can provide to them. What to SMBs need from the internet might be a better question to ask me, so we’ll go from there.

Small Businesses need a cost-effective, results oriented marketing plan to transition their budgets online. The number of options is growing rapidly, but the value they need remains the same. The question is now how should they best approach their solution? Large market players (CitySearch, YellowPages.com, Yelp, etc) are beginning to diversify into smaller markets, but their models are designed around an easy to reach critical mass (read Large Market). But where do local businesses outside of major metro areas turn? Companies like mine.

Our company provides a mix of Lead Generation and Brand Advertising. We offer traditional Lead Generation forms on each business’s profile, multiple branding opportunities across each category, and click-throughs. We provide a short-term ROI and many great value-adds to increase the effectiveness and return for our clients.

Small Businesses need something that works for them, the first time, with a short learning curve. Make it easy, make it quick, make it work. Thats what we are trying to do better everyday. Make our website work better and faster for our customers. We do this by measuring our site, adjusting the layout, increasing our Search Engine Placement and building our traffic.

Our traffic is up, see the chart below (see my previous post Analytics, Where did you get these?, for my thoughts on the actual numbers), our customers are happy and we are feeling pretty good about what we are doing. But its not good enough. Its not easy enough, and its not fast enough.

Local businesses need help doing everything. They spend enough time dealing with employees, and payroll, and taxes, and banking, and and and. They shouldn’t have to spend hours dealing with their marketing. That IS after all, what they are supposed to be paying us to do for them. That is my job, and every marketer’s job that is trying to reach local businesses. Its our job to make their lives easier. If its not easy to sell, its because it isn’t easy enough, or fast enough, or simple enough for the small business to get. And that means we aren’t doing our jobs.

Small businesses need us to do our jobs better; to make their marketing decisions easier. We are the experts (or should be) and your product should have that level of trust built into it. This is coming from a Small Business owner, and a marketing provider. In our experience, it needs to be easy, it needs to be quick and it needs to work. If it does those things well, it will have the trust built in that you need to sell it and the SMB needs to make a decision.

Small businesses need to trust that their marketing (money) is working for them.