In short
Podcast Summary: The Side Hustle Show Episode 647 - How to Start an Online Directory as a Side Hustle
Episode Overview In this episode, Nick Loper speaks with John Rush, a directory-building expert who has successfully launched 30 online directories in just the past year. John discusses the potential of online directories as a lucrative side hustle, sharing insights into why they are an ideal first online business, how to choose a niche, and the tools required to build a directory.
Key Takeaways
- Why Directories Are a Great Starter Side Hustle
- Directories are often overlooked yet can be lucrative due to their simplicity and demand for curated information.
- In a world flooded with AI-generated content, users increasingly seek trusted, curated lists rather than generic search results.
- Choosing the Right Niche
- Start with what you know or are passionate about.
- Use tools like Google, Reddit, and Quora to identify gaps in existing directories and understand user search behavior.
- Look for areas with diverse opinions and debates; a lack of consensus could indicate a need for a directory.
- Building the Directory
- Choose a memorable, concise domain name (preferably .com or .org).
- Utilize no-code platforms (e.g., Unicorn Platform) to streamline the directory building process.
- Focus on data curation; prioritize quality and relevance over quantity.
- Data Curation Process
- Start with essential data points: title, URL, description, and category.
- Write unique descriptions for each listing to enhance user trust and usability, avoiding generic language often used by competitors.
- Consider hiring researchers or using scraping tools once you have a clear process in place.
- Marketing and Gaining Traffic
- Use backlinks effectively by engaging in discussions on platforms like Quora and Reddit.
- Share your directory with communities where users are seeking curated lists.
- Create additional content (like blog posts or tools) to drive traffic and establish authority.
- Monetization Strategies
- Sponsorships and Ads: Sell ad space to related businesses, charge for featured listings, or offer premium placement options.
- Lead Generation: For high-ticket items (e.g., solar panels), collect leads and charge businesses for successful referrals.
- Freemium Models: Offer basic access for free while charging for premium features or data insights.
- Mistakes to Avoid
- Avoid overly long domain names and narrow your focus to make your directory memorable and impactful.
- Don't underestimate the effort required to make a directory great; mediocrity will not attract traffic.
- Ensure that the directory offers a "wow" factor or unique value proposition to encourage user engagement and sharing.
- The Role of AI
- While AI can help automate data normalization and enhance user experience, reliance on it should be minimal for new directories.
- Use AI judiciously to assist in content creation or data processing, but maintain a human touch to avoid average results.
Conclusion John Rush emphasizes the importance of enjoying the process of building a directory, rather than focusing solely on immediate outcomes. He advises aspiring entrepreneurs to embrace the learning journey and continuously strive for improvement. This episode serves as a comprehensive guide for anyone interested in starting an online directory, highlighting both the opportunities and challenges involved.
Resources
- [John Rush's Directory Guide](https://johnrush.me)
- [Unicorn Platform](https://unicornplatform.com)
Next Steps Listeners interested in exploring more about side hustles can create a personalized playlist based on their interests at [hustle.show](https://hustle.show).
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Transcript
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1:17What's up? What's up? Nick Loper here. Welcome to the Side Hustle Show. It's the business podcast you can actually apply. Today, we're exploring the unique side hustle of online directories, why they're a great starter online side hustle, how to come up with your first directory idea, build the thing out and start making money. Now, I've got a little bit of experience in this space, but nothing like today's guest, who is a master at quickly building and marketing these little side projects, launching 30 in the past year or so, monetizing a dozen of them and even selling one, which was allgpts.co for a five-figure exit from johnrush.me.
1:52John Rush, welcome to the Side Hustle Show. Thank you for having me, Nick. I'm ready to share. All right. I'm excited for this one. Start us off with the pitch. Give me the elevator pitch for why directories. How come you've been investing so much time, effort and energy into them in the last year? The most scarce resource of the future and today's attention and the best way to win attention is to see what people search for and then have your products and services shown up on the search results. And then I had this idea that maybe if the search will be more and more polluted with AI-generated content, eventually people will want to find places to search for things where they trust the curation.
2:32They trust the author who has put the time and expertise to build up this list. So then I thought the directories will really thrive in a world of infinite choice where users don't trust the former ways of searching for things such as Google and other places. And they will rather trust a place that focuses only on one type of item and knows everything about that. Okay, so the idea is to become almost a mini Google in a way for a specific topic. Yeah. Okay. All right. I like that. And that's kind of the game that I've been trying to play in the side hustle space for a long time. Like, hey, you know, we've become the go-to resource.
3:14And, you know, one of the challenges has been historically relied heavily on Google for that initial traffic. It's great if people know who you are, but it's harder to kind of get that initial traction in the first place. Are you finding success still marketing through SEO? still finding that initial know, like, and trust factor through and discoverability through Google? It's getting harder and harder for SaaS projects, and it's getting easier and easier for directories because I see that the pattern people have with the search, when they search for something where there is a large number of items to choose from, their typical pattern is that they're not searching for the answer.
3:55They're searching for a place where they will find the thing. So they're kind of searching for directories. They don't think about that. But in reality, people search for directories for places where they can have this rich type of content where every item has reviews or ratings or information around it or comments. So I think that game is just getting easier and better and better. I see huge growth on SEO traffic for my directories, and I have serious drop on SEO traffic for SaaS projects, because SaaS projects usually drive traffic through blogs. And the blog articles are not doing well now because so many people can easily generate them with AI.
4:38And some say AI blog posts are low quality, but, you know, they do something else. They just take good blog posts and they rewrite it with AI. Now it's good quality because it's just the same block path rewritten and Google cannot spot those rewrites, right? Unfortunately, not yet. Here's my theory. I'm going to go off on a little tangent and then we're going to bring it back. My theory and my hope is that even in an AI-driven world, there's got to be some benefit to being a primary source creator. like to scooping a story, to creating a firsthand review, even if eventually that ends up getting scraped and crawled and regurgitated by a million different AI tools.
5:18That's fine. There's some frustration around that, but there's still got to be, somebody's got to create this stuff, right? And there's got to be some benefit of doing that. Now, I want to pitch you on my idea. So historically, lots of listicle type of posts. That's side hustle ideas of 2024 or something like that, right? What I would like to build and what's kind of been on this project radar is like the side hustle ideas directory, like every everything we've ever covered, you know, in one easily sortable, you know, maybe it has like earning power and a degree of difficulty. And so your argument is like, you know, rather than that traditional listicle 25 best side hustles of the year type of content, building out the database, like the directory of side hustle ideas, like that could be a different type of project, or that could be a new way to capture SEO and visitors.
6:07Yeah. Historically, nearly every directory or database of items that managed to survive for several years and kept improving its content has won and driving a lot of traffic. And I've been researching this a lot. Like I've been researching their traffic and the growth, and it's insane, the amount of traffic going into these directories. So most people don't even realize they actually use those directories because at some point your director will not look like a directory. It will be like a marketplace or a place where you can put items. For example, even Craigslist is a directory, right? Even Airbnb is a directory.
6:42Right. Like people think that AI is going to change everything and all content gain will go to zero because AI will just answer your question right away. I don't think that will be the reality because a lot of questions have no answer. Like AI will answer what's one plus one and you will trust it. But if you ask AI, what's the best place to go with my girlfriend, for example, like whatever answer you get from AI, you will not trust it because it's a topic nobody has the answer for. And then what you actually want AI to do is to say, look, here in your town, I think this is the best place. And here's the link to the directory of the places where I researched this.
7:24And what you would probably do, you would click on that link and go and verify yourself why this is a good place and continue your search there versus using ChatGP or AI. So I think from this point, directories might be the only content project that will survive because most of the other things, they can be hidden behind the AI chats and users won't really give attention to where it's coming from. Like there will be maybe links and citations, but you won't click because the answer is good enough. But for directory type of items, you will always wonder why and what else is there. Yeah, this is really interesting.
8:03You know, okay, this could be a small scale weekend side project, or it could be some of the biggest websites in the world, like a TripAdvisor, you know, a directory of things to do on your vacation, places to stay. Yes, exactly. Yeah, you know, Upwork and Fiverr, like, you know, directories of qualified freelancers. Yes. There's like side hustle directory. And then there's like, this could turn into a really substantial business type of directory. Now you built dozens of these things. Talk to me through the idea of generation. How do you figure out what to build or where do you recommend people start there?
8:35There are two ways to come up with ideas. So one way is if you're an expert in something and you know something really, really well, I think I really believe that high quality data will win no matter what. So if you know something really well, you can build directory out of that. But most people don't really have the super expert knowledge on the topic. So then if you don't have that, then the best way is to go and check on Google what people are searching. So the best way is to go to the Google itself and enter a keyword. For example, you enter dogs, you say like dogs, and then you will see shelters for dogs or food for dogs or trainings for dogs.
9:16And now you have three directory ideas, right? Because probably there is no directory that has a lot of trainings for dogs and all the ways you can teach all different kind of dogs, etc. So Google helps me a lot. And then you can use other places where people search for things. You can go to Quora and see if people ask, for example, if there is one article there that says, what's the best Hummer to buy, for example. And then you will see a lot of answers in the comments. And if all the answers are different, then it's pretty much a directory that was just created under this article. Because in some cases, everybody's going to answer the same thing.
9:56Like, what's the best payment solution? People are going to say Stripe. There's no point of making a directory for that because you'll have Stripe and other items nobody cares about. But in this case, you have the items and you can see that people debate whether one item is better than the other. And I would say that such debate is just gold for making directory because A, you have the idea and B, which is even more important, you understand how exactly people compare these items because it's not clear. And this part is more important than most people think for directory. So you have to be really smart on what exactly you present about the item, because people don't come there just to see the list.
10:37People come there to see the list and also to see like every item has a lot of stuff about it. But what are the three most important things about this item and how do you highlight them so that I don't have to go and search and read and read and read? So you have to save my time. And such Quora article is going to help, Reddit article is going to help, and social media as well. How does this differ from, you know, a traditional affiliate, you know, Amazon affiliate site where it's like bestblenders.com and it's like bestblenders for smoothies or bestblenders for juicing or like, and I see that kind of a listicle content with affiliate links and they've got their own, you know, little blurb or, you know, we tested this and like a wire cutter type of content.
11:21What separates that type of site from a directory in your mind? I think there is a directory too. So I think that's just a subset where you take a physical product or any product that's on sale and you niche it down to certain category or many categories, and then you have affiliate links and you make money on that. But I think that space is difficult to win because, you know, you need a lot of sales to happen through your website. So I usually recommend people to bet on the ideas where you can find sponsors who will pay you a lot for sponsoring it. Because it also means that the directory is valuable because it's kind of one way to test is to find a sponsor who will sponsor your directory before you built it.
12:09And that's possible. I recommended that to some people and they did and it worked because, you know, everybody wants to pay for growth and traffic. and if you can bring it, people are going to pay you. But with this, like with Blenders, there's no way you're going to convince a Blender producer to sponsor such directory. And with affiliate links, you can make some money, but it's really hard because you're competing with all the listicles, like you say, you know, fifth and best Blenders. And in this space, I think, especially in Blenders, I think the blog articles will often win against the directories because people don't feel so serious about the thing so that they go into the directory.
12:47Like the blog article seems lighter. But if it's a car or a tractor or something more serious, then the directory will win against the blog article. Okay, because you have more perceived expertise in that. You've built the entire directory and database and structure around being the expert in that thing. Yeah, exactly. Also, you can anticipate what people want to know about the topic. For example, if you're looking for a really good microphone for a podcast, there's really high chance you are looking for the lighting and for the camera and other things. And then if you land on a directory that has it all, like it has five categories, like microphone, speaker, light, camera, and you see that it's fresh, you see that it's done by an expert, and then you click on the expert, and you see that the expert is producing really good YouTube videos that you really like.
13:43and you're going to bookmark this place and you will send it to your friends whenever anyone else wants to do the same. So I think with directories, there are multiple plays. So one play is where you just do a side project and you win some traffic, you channel the traffic into your main project. But the other way of building directories is to build something that you will turn into full product. And in this case, if you target the people who make podcasts, there are a lot of products you can build on top of this directory. For example, you can connect the people who sell the services on helping you to make podcasts and also the guests for the podcast.
14:19There are a lot of things you can sell to this crowd. Sure. Yeah, you could have even a directory of the best podcast editing services or something. And some of these service providers may be hungry for growth, so they would turn around and sponsor that. Exactly. Or they would pay for a featured listing or something. And that's, you know, my directory building experience is somewhat limited to this virtual assistant site that I had years ago. And it was, you know, directory and review platform for outsourcing companies, where to find your best virtual assistant. And we didn't do this right away, but after years of kind of paying attention, well, what does Yelp do?
14:53What does TripAdvisor do, right? It's like they have the featured listing at the top. It's like, no, this is not necessarily based on any algorithms. It's based on who paid to advertise there. So that's what we ended up doing, selling a kind of featured listing placement to companies that were looking for extra leads, more than they might get organically. And that worked out really well. So what I'm hearing is start with what you know or have an interest or curiosity in. Look what people are searching for using tools like Google, Quora, Reddit, trying to figure out, okay, what's that? Looking for a diversity in answers.
15:23If there's one consensus winner, it's going to be really hard to build a directory around that. but looking for diversity of answers and some back and forth debate, that could be great. And then maybe like looking for higher commitment decisions, maybe blenders, not a great thing to build a directory around. But if I'm looking for somebody to edit my podcast, potentially for years and years down the road, like, okay, that's a higher commitment type of decision. And similar to MVP wizards, one of yours, like people who are going to build out this product for me, top website builders, another one of yours, where it's like the switching costs of trying to move different platforms pretty high.
15:55So hopefully I got to make the right decision and guide people to the right choice for something like that. More with John in just a moment, including how to evaluate the competitive landscape before you start, and the most important thing you can do to differentiate yourself from that competition right after this. A lot of side hustlers suffer from what-if-itis. What if it doesn't work? What if I don't have the skills? What if I pick the wrong path? But one thing 100 % of our amazing guests have in common is they took their shot. They phased down those what-ifs and they got their answers through taking action.
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17:06Go to shopify.com slash side hustle. Shopify.com slash side hustle. Are you still overpaying for wireless? It's time to say yes to saying no. At our partner, Mint Mobile, their favorite word is no. No contracts, no monthly bills, no overages, no hidden fees, no BS. And here's why I said yes to making the switch over five years ago and yes to getting premium wireless for 15 bucks a month. I really liked being able to keep my existing phone and my existing phone number when I switched over. This year, we've taken advantage of their easy international add-ons, including free service in Canada and affordable packages when we were visiting Japan.
17:44But closer to home, all Mint Mobile plans come with high-speed data and unlimited talk and text delivered on the nation's largest 5G network. And the best part? Plans start at just$15 per month. Are you ready to say yes to saying no? Join me in making the switch at mintmobile.com slash sidehustle. That's mintmobile.com slash sidehustle. Upfront payment of$45 required, equivalent to$15 per month. Limited time new customer offer for first three months only. Speeds may slow above 35 gigabytes on unlimited plan. Taxes and fees extra. See Mint Mobile for details. Now, are you paying any attention to the level of existing competition here?
18:26Like if I type in a primary keyword and I see nothing but super, super authoritative websites and household name brand type of publishers, is that a deterrent? How do you figure out if there's still room to play here? Surprisingly, in this game, really often And seeing a competitor is a good sign because you know that people search for it. You know that Google is actually pouring that directory up. It also means that you have the chance to, because for some topics, I don't know why, but Google never brings directories up and it will always bring the blog posts there. So I usually expect several directories in the first 20 pages.
19:04And one thing that will scare me off is seeing only directories on the first 20 pages. For example, if you search for AI tools, you will see so many directories that there is no room there. But I would say that's the only topic that you shouldn't go after. Like the only one, because everything else, if there is one winner there, there's always room to play. And I don't really look at competition at all. In a negative sense, I look in a positive sense. Like if there's competition, it's good. So it's just the opposite of a normal business where you're looking for less competition. All right. Let's say we've got this idea.
19:44We want to build it out. Maybe it's the podcast editors or maybe it's the dog trainers or it's something where I've got some background or some level of expertise in and I want to go and build this thing. What's your first step? The first step is to find the idea. So you have the idea. The second step is to find the domain name, because that's really important. If you don't have a good domain name, it's really hard to win. And it takes time to find a good domain name because.com is usually taken for everything that's obvious. So you have to be creative. And in my case, I spent weeks and months looking for a domain name.
20:23So not like every day, but every day I would spend a few minutes on that and eventually find something. Like every single time I found something that was really, really good. So you find a good domain name and then you find a website builder to build it. And I really recommend people to use no-code builders because they have everything out of the box. And you're not in the business of inventing technology here. You're in the business of data and you should focus on data, not on the technology. Any specific ones that you like? Yeah, I use my own Unicron platform, which I pivoted into being directory builder.
20:57It lets you build a lot of things, but also directories. So that's Unicron platform I use mostly. But people can use any other tools. I would say there is no bad difference between the tools. So my builder is tailored for directories, but other builders are also capable of that. And if you know Webflow or if you know VEX or if you know WordPress, just go for them. If you don't know anything, I would recommend using my tool because it's really good for directory. And then once you build that directory, it should take you not more than a day. Because if it takes you weeks doing that, you're just putting the wrong focus on the wrong things.
21:31It's really difficult to succeed with anything if you're not putting your priorities straight up from the start. So you have to put it from the start that this is a data project. This is not a technology project. So you have to spend 10 % of your time on technology and building the thing. And 90 % of the time on actual data curation because that's exactly what's important. I've seen directories with millions of clicks every month that look like they're from 90s. Like they look really bad, but they have millions of clicks. The next step for you is to curate the data. And that's the most difficult step because you have to find everything in this topic because usually the people who land on your directory, they know some of the names.
22:16They know because otherwise they wouldn't be searching for it. Like imagine you're looking for websites to book your holiday travel. That's a directory. You open that and you don't find Airbnb there. The typical user will quit because they will think like someone who made this has no idea what he's doing. So you have to make sure you have all the big players because that's what creates trust for the visitor. But also you have to have the players which are not big because users came there to find something they don't know yet. So the big players are there not for the clicks, but for the trust. And then the rest is there for the value.
22:55And usually to solve that, I use scrapers or I hire someone for a week. I give them the task and they just spend every day searching for the items. They put them into Google shit and then I go through the shit and I just visit every item. And I make sure it's relevant and it's new. Because also, it's not about quantity. It's about quality. You should not put items from 90s. Like it should look fresh. It should look like it's done yesterday. Because one thing with directories, a lot of the websites on the internet are abandoned and you still land on them. But then once you fill, it hasn't been updated for a long time, you lose interest.
23:36So people have to feel like this is an active project. So don't put there some boring, ugly items. Just make sure that you filter them and you put good stuff there. And that's it. Okay, so that's an interesting point. It's not necessarily about building out the yellow pages with like every single business possible. It's like trying to curate the best or the most active. Yeah. Well, you have two options. One, if you go after having everything there, if that's your value, and if your directory is called all companies in the world, like that's the name, you have to have them all. And when people come in there, the first thing they're going to do is they're going to test.
24:13Like people always test places and they will come and they will search for the least known company in the world to see if you have that. And you won't have that probably. And then they will think you're lying and the whole trust is gone. That's why if you have that directory, you have to make sure you're capable of creating the data. And it's really hard. You have to put insane effort to get everything. Okay. So instead of attempting every side hustle or all side hustles, maybe pivot that to best or top or something like that. I would pivot that into lazy side hustles, for example. And then you only focus on things that take little time.
24:53Got it, got it. For example, you have to niche it down somehow, because if you say best, then why best? It's not easy with best. A lot of people use best, but I would not recommend best. Okay. Another couple of examples came to mind just as we were talking here. ThemeForest and the whole Envato suite of different marketplaces that they have. Like ThemeForest is a marketplace for different WordPress themes. So I was very meta, looked for directory WordPress themes and got, you know, that was the top search result into their directory. Like, oh, here's a bunch of WordPress themes that are good for directories.
25:24Another one that came to mind would be like solar installers. Like this is a higher ticket type of project. Like if you want to put these panels on a roof, like who do you trust? How does it work? And you can go and curate that type of kind of lead genera. And then like there's built in monetization. Like you might have to go make some deals with these companies. But like I imagine if it's a$25 ,000 install, like they're probably willing to pay you a little bit for that lead. I actually think that the safest way to build directory is to go after really high tickets like solar or in my case, for example, MVP visits.
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25:56It was really successful having very little traffic because you'll need a lot. You can have 100 visitors a day on this directory and you can monetize that really, really well. If you have a commission system where you get 20 % on the money they pay to the vendors and they pay like 10K, then you get 2K back. And that's a lot. So one deal brings you 2K. And that's huge. So I think that space is really empty. I don't see a lot of competition there because for some reason, the directories mostly target high traffic niches. because I think most directories still go after affiliate marketing links and channeling the traffic and very few go after high tickets and a few sales.
26:42So I think that would be where I would go if I had nothing going on right now. I would go there. Okay. Yeah. It doesn't need a ton of traffic volume or even a ton of search volume. It's like you can be the go-to authority in that tiny niche. Then all of a sudden, if you've got the attention and the leads, yeah, people will be happy to pay for that. Exactly. You don't even need the items like with solar power, for example, you can say solar power in Texas. And then you have to just find all who can deliver it in Texas. And that's not a lot. You can spend one evening and find them all on the internet and then you put them there.
27:16And then the chance that you will score high for those who search for that is really high because it's a local search and local search is way easier to win than any other search because Google really rewards its websites. You know, scraping data sounds kind of technical. Hiring a researcher sounds less technical. Talk to me about this data curation process, because this is the value add in a lot of ways. And then adding your own, I guess, insight expertise to layer on top of that. But to first collect the meat and potatoes, the listings themselves in the directory, that's kind of the hard part here.
27:51Exactly. I think you should do it yourself first so that you understand where to find them. You understand how to evaluate them. Because if you hire somebody to do that or you're scraping, you still have to read through all the items and make sure that they have, like you have to put some categories, tags, and you have to make sure that the description is roughly the same size. So that you don't want to have one item with one sentence and the other has a book in it because you want to have a similar thing there. So I think you should spend a few days yourself just doing that and collect first 50 or 100 items yourself.
28:26I always done that, but I always did that for every directory I have. And once you understand it really well, just write the spec for it, like where to search, what to look for, and how to describe it, etc. And then the job is easy to outsource to people, too. So you would go to a place like AppWork, for example, and you would put your entry there. you would pay a few hundred dollars for that and somebody would do the job for you. What kind of data points are you going to make sure to collect in that initial research phase? I start really small. I go for title, URL, and description, and the category.
29:05I even skipped logo and images because I think it is not that important. And then later, I just enrich the data I have once I see directories working out. But at the first, at the initial stage, it makes more sense to put more effort into finding more items and putting some time into writing descriptions because I write them myself. And that's very interesting. So if you don't write them yourself, there's a problem. They all will look the same. Like, for example, you have a microphone and they will all say, good microphone works best for podcasts. And then you find hundreds of those and they all have the same text on them.
29:44It works great for podcasts and everybody loves it. No value, right? So your job is to simplify the suffering for the users because they have unlimited choice and they want to pick one. And that's why I look at all of them and I try to come up with descriptions to actually differentiate them. Like this one is the smallest microphone or the cheapest microphone or the microphone that works well when there's noise around etc so some microphones have that option where you can have a cheapest biggest smallest etc some don't have that but for them you just say something like it's rather good value for money and then for others say it's durable it lasts for 10 years but if you're not pro maybe go for something cheaper so i'm kind of like a reviewer who reviews every item based on everything i find about the item on the internet.
30:40And then I put a few lines on every item on the directory so that you don't have to do that work I've done. So I'm compressing my work and making it easy for you to pick the right one. Okay. And this is like one of my earlier projects was a, I guess you could call it a directory for footwear. It was like, where can you find the best price on your next pair of shoes? But in that case, it was affiliate driven. And so the retailers would happily give you their product catalogs. And so you could mash all of that data into one, central database. And then the challenge became kind of normalizing it where there wasn't a hard SKU or product ID across, you know, every different store that carried the same product.
31:19And so we had to kind of develop our own type of algorithm to compare this product to this product and make sure it was really the same. And what kind of common words were we going to ignore and which ones were we going to say like, okay, this is actually the same thing. And this is, you know, the price, but like, that's kind of the, that's the value add here. I think you had a good term, normalizing data. And I think most directories bring that as the key value because most potential directories or the niches, they don't have that. Nobody has ever done that. And just doing that is huge value.
31:51And if you're looking for the idea, that's one way to evaluate the potential. If that's not done in this space, then it's something you should do because if you do something that doesn't exist, Like in my case, for example, with all GPTs, what happened is that it didn't exist when they created it. And then you win all the traffic from Google because people search for something and there's nothing except you there. And even if you're on the page number five, people will find you because they're looking for a specific thing. People always say to me, like, probably the directory thing has too many people in it.
32:29And every directory that could be created has been created. I'm like 9 % are not created yet. 9 % like every day when I search for new directory ideas I find so many that I don't know how I will ever build them all like at least 10 per day. So now I'm actually giving away these ideas because I have no time to build them all. And if it already exists find a way to differentiate it in some way make a pivot to niche it down to serve a different market. The advice that stood out several years ago on the show from John Lee Dumas was like, hey, when I started Entrepreneurs on Fire, I was the best daily entrepreneur interview podcast.
33:09I was the worst daily entrepreneur interview podcast because I was the only. It'd be the best, worst, and only. Like if you can be a market of one, if you can be the only, it can be a really powerful place to play. More with John in just a moment, including the role of AI in your directory project and marketing and monetizing the thing to start making some money right after this. There are less than 100 days left in 2025, which means less than 100 days left to hit those goals that you said or to refocus your energy on what really matters. If you've got some catching up to do and maybe you've been procrastinating on taking that next step, our sponsor Indeed can help you find the best candidates for the role you need to fill and find them fast.
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34:25Just go to indeed.com slash side hustle show right now and support our show by saying you heard about Indeed on this podcast. Indeed.com slash side hustle show. Terms and conditions apply. Hiring. Indeed is all you need. One of the tools I've personally seen make a huge difference for business owners is Quo, formerly OpenPhone. It's the same great business phone system you've heard me talk about before, just with a new name. When you're running a business, you know that every missed call is a missed opportunity. So Quo, formerly Open Phone, this is the number one business phone system that streamlines your customer communications.
34:59It works through an app on your phone or your computer. So no more using your personal number as your business line. No more carrying two phones around. With Quo, your team can share one phone number and collaborate on customer calls and texts just like a shared inbox. So anybody can jump in to keep response times fast. And this is where it gets super cool. You can set up Quo's built-in AI agent in just a few minutes to handle calls after hours, answer customer questions, and capture leads on autopilot. I want to invite you to get started for free. Plus, Side Hustle Show listeners get 20 % off your first six months at Quo.com slash Side Hustle.
35:37That's Quo.com slash Side Hustle. Look at them getting that three-letter domain. Quo.com slash Side Hustle. And if you've got existing numbers with another service, Quo will port them over at no extra charge. Quo, no missed calls, no missed customers. Tell me about the role of AI in either this data curation or this. I feel like there's got to be a way to accelerate because I spent nine years building out this virtual assistant directory. And every time I'm trying to come up with what new companies launched this month and should they be included here? and then hiring somebody to go research them and interviewing the founders.
36:15Like it was very tedious and time consuming and there's gotta be a way to accelerate this stuff today. AI makes it way easier to run directories because AI can normalize the data. AI can look at all the items and extract certain properties of those items for the business ideas directory. AI could say like, you probably should add a column of difficulty. How difficult is the idea? And I always use AI for that because AI is really good at looking at the big picture, looking at a lot of data and extracting certain common properties. I just take the data as CSV file and I just paste it into ChatGPT and I ask questions like what columns should I add so that people could filter on those columns and then what are the categories I should use to categorize this list.
37:07and sometimes I ask it to shorten all descriptions, for example, because I wrote long ones and just made them all roughly the same size. And it helps a lot. So I don't think I would even near where I am now without AI. Like there are tools that help you to find the data, there are tools to help you to enrich the data, like these AI agents. But I wouldn't use them if you're building just one directory. So I use them myself because I have a lot of directories. But if you're building just one directory, I would not use AI too much. So I would probably stay with Chachapiti and just use it as assistant.
37:41But still, you have to run the show because one problem with AI is that it makes things look average. So if I use AI and you use AI, our products will look very similar, very similar. And if you're, as a human, you're below average, then AI is better than you. But if you're better than average, then you'll be better than AI. Okay. them. So what I'm hearing is starting pretty lean and basic with as few data columns as possible. And then once it gets traction, then it's adding on going back, doing the additional research, adding the logos and the images and the extra columns that people might want to filter on and all of that other stuff.
38:26But only after, okay, I'm starting to see some interest to this. I'm starting to see some initial traction. Like, what are you doing outside of just relying on SEO? Like, oh, build it and they'll come. Anything you're doing proactively to, you know, to breathe some life, to get some algorithms churning in your favor, to get some traffic to these things? Yeah, you have to because Google will not respect your website if there are no backlinks. It will ignore it completely. So you have to find backlinks. To find backlinks, there are a few ways. So the first thing you have to do is you have to go to places where people ask for this.
38:59for example, the Quora article or Reddit article where people ask for those microphones, for example, and then you go there and you say, hey, I built a directory for the microphones. Just check it out. And the interesting thing is that the directory is the only type of business that you can just plug your URLs into replies and nobody's going to hate you for that. Because it is a value add. Somebody did all this work for me. Yeah. Like really? Because it's free. Because it's a free product, right? Because there is no paywall there. And I've never had even once the case where people said, like, why are you bringing the URL here?
39:37And because on Reddit, it's really hard to put URLs. But this one is fine. So you go to Reddit, you go to Quora, you go to social medias, Twitter, LinkedIn, and you find hundreds of places where people talk about that. And then you place your URL there, but you don't spam it. You just try to answer the questions. For example, the tweet says, what's the best microphone for a podcast? And then you say, hey, I have directory with all the microphones, and I think these three are good based on whatever. So you do a little work for them in the text so that it doesn't look like automated reply. And then you say, but you can go and look for yourself on my directory if you want to learn more about that.
40:20And it works really well because you gave little value and some just use that and then others will click and learn more. And that part is probably the most important part of the directory because you get backlinks from those replies. It's not like reply giving you a backlink for Google. It's just when you reply, somebody sees your link and then there's high chance that people will link to your URL from their blog article or from somewhere else. That's your hope being present in the social media discussions. Got it, got it. So yeah, it's user-generated content. It's probably going to be a no-follow link.
40:57But by virtue of being visible on these, especially Reddit and Quora too, but like all these sites that already have a bunch of search traffic that if people are looking for this thing, you have expanded your surface area of opportunity of luck where now other people can find it and get traffic both from the thing directly and from other people now linking to you in editorial content with hopefully a do-follow link. Yeah, exactly. So that's the thing about directories. Directories are by design made in a way to be shared by others. So you have to do very little for others to share your directory.
41:29Very little. Like with SaaS, it's difficult because every SaaS, it has payroll and it has a million competitors. But with directories, it's usually not the case. And people both share and link to it a lot. But you have to show it to the world. So you show it through replies on social media and Reddit. And then if you have good directory, the rest happens. If nothing happens, then you know why. Because directory is not good enough. And often that's the case. Like if you build your first directory, I have this directory guide community where I guide people on building directories. And it's really interesting to watch how people build and how they approach it.
42:09And most people put such a little time. It almost feels like in school when you want to pass with the little effort possible and, you know, get that whatever grade you get and go to next year. So I think a lot of people have that kind of mentality to business too. But with directories, you have to be really pouring your heart into it because people can feel that. It's really easy to judge directory and understand whether somebody put time into it or not. Because if you are a user of a directory, you understand what you're searching for. You understand what you need. You understand the space slightly.
42:45So it's really easy to judge. That's why there's no chance you can make bad directory and it will score. But at the same time, also there's a small chance to make a good directory that nobody is going to link to or share. So it's really fair space. I've got like dozens of ideas of like, oh, shoot, we could build this. We could build it. And to me, that's the mark of a good episode. So I'm sorry to pause and derail. It's like, I've taken notes. I've got it like, that's good. And that's really cool to kind of spark this and kind of broaden the definition of what it could be. And there's limitless niches, limitless potential here.
43:20I think it's really, really cool. The stuff you can do. So going back to the marketing stuff, it was, you know, this first wave of backlinks and mention was from this user generated content, answering people's questions. What happens and hopefully getting some, you know, positive word of mouth from that. Anything else? So what happens next? There are very few things you have to do. It's rather you have to repeat the same thing. So you have to repeat the work on data every day. And that's the thing. A lot of people ask me, what's next often? And I say, do the same thing again. Better data, more data, improve the data, add the data.
43:53Find more content on the internet where people talk about it. Plug it in. Because internet is not static. It's dynamic. And every day there is new stuff there. And also create your own content too. You have a lot of items and there are a million ways of creating articles out of it. For example, best microphones for that. And you can make all those listicles that others do as well. And since you have the data, you can use the data too. Like, for example, if you have data on clicks or something like that, you can have an article saying the most popular microphones this month on my directory. and nobody knows your directory, but people will think you have a cool directory because there's an article that uses your directory as, you know, when you say Craigslist, it's a brand.
44:40And if you use your directory name the same way, it will be like a brand too. And it's on the brand at the start, but if you behave like a brand and you create articles, it'll work. And then you also find all the articles on the internet that talk about this and you contact the author and you tell them that you have this directory and if they want to link to it. And very often they will say yes because it will improve their article by linking to your directory. They will improve it and they will do it. So basically you have to hunt for more backlinks because SEO game is your game and SEO has two factors.
45:13One is backlinks, the other is the content. That's why improve the content every day and make the articles. And then the other thing you can do, you can create little tools. For example, if it's a microphone, you can have a little tool that tests the microphone if it's working or not or something like that. And it's easy to make those tools because you can either pay somebody a few hundred bucks for that or you can just use AI generators and create a tool. And those tools are pretty cool because if your directory is having items, blog articles, and also little tools about the same space, then when the visitor comes in, they have this feeling that you put effort, you're an expert, you know what you're talking about, and you're serious.
45:57Because most directors are not like that. And also, there's really high chance to be linked to. Like, you take this link, and you go to all articles talking about microphones, and you say, look, I also have a link to test, and you can link people to this. So that's kind of the boring part of the job. So you have to just do those little things every day. And do you have an example of a tool that worked for you on one of yours? Yeah, for example, I built this tool to test a website for broken links. I built it with AI in half an hour. So you put URL there and it tells you if there are any broken links on this URL.
46:33It just looks at the whole page. So that one and a lot of small tools like that where mostly you enter something, you click something and then something else happens. It can be a calculator, it can be a generator, and etc. And now it's the best, like now it takes less time to create the tool than write an article because all this AI generators for code, they will work really well. You don't have to be a coder for using them. Fascinating. On the monetization side, we talked a little bit about sponsored listings or even like, you know, the title sponsor of the entire directory. We've talked about kind of a lead generation model, especially for high ticket services where if it's, you know, a multi-thousand dollar solar install or something, yeah, we'll pay you for that lead.
47:20Just strike up those partnerships. We talked kind of on the affiliate side, more traditional product affiliate marketing, you know, best blenders, best podcast mics type of stuff. Anything else that we should know about on the monetization side once this thing is built, once it's got some traffic and traction? Yeah, so there are two ways of monetizing. So one is by using technology and one is by using sales. So by using sales, you can just sell the ads, you can sell the data. So one, you can sell the ads to anyone. It doesn't have to be somebody who owns these items. It can be anyone who is interested in the audience.
47:54Like if it's microphones, you can sell ads for those who sell light, right? Because it's the same audience. And I usually do that really very often. And then the other way is to have paid listings. So you don't let anyone list anything on the directory and you charge them something for listing. It works really well if your directory is large and you expect a lot of people listing things there, like yellow pages. And then you have these freemium directories where you show something and then you hide something else. So it can be anything. It's kind of a gamification. So you either show all the items and you hide the rest.
48:34You show 100 and then you hide the 500. Or you have categories. For example, you have, if it's cars, like the cars that are cheaper than 30K, you can view them. And if it's more expensive, you have to pay. No, I forget the name of the company, but it was like industry research reports where they show you like a little bit of the data. But then some of it is grayed out and you got to pay them the$29.95. At least it is. Maybe it was that. Yeah. Whereas, you know, if you want the full report, you can pay us for it. Yeah. They do really well with that. I pay them, and I can imagine how much money they make because they charge a lot.
49:11So you have to gamify so that people get some value out of your directory for free. And maybe even the first time they come, they're satisfied, but then they come there the third or fifth time, and then they will pay to see more. It can be either items or it can be the metadata of the item. For example, you see all the items, but you don't see reviews or you don't see the contact information. In some cases, the contact information can be hidden. So that's really common on job boards where it's like, hey, we'll show you the profile and some of the skills and qualifications. But if you want to be able to actually contact this person for an interview or hire this person, then you're going to have to pay us.
49:51Exactly. Anything around humans is going to work that way. Like if it's a marketplace for skills or jobs or anything, then you have humans, then you have their contact information. You can hide that and charge for every click or charge subscription and then show it completely. And then the other way is to let businesses claim their items. So you add items with really poor metadata and then you email all the owners. Like intentionally poor? Like not bad, but poor, right? So you just put title and that's it, for example. Okay. Just not super complete. Got it. So it's still there. Yeah, exactly. So it's still there.
50:29But if anyone is logging for items in this directory, they would probably ignore the one that has only title. But they can still click on it. And for the sake of quantity, you have it all. For the sake of trust, you have them all too. If I know that item and I see the title, I'm happy. It's there. Okay. And then you email all the owners. And I think this is probably the strategy that will make you most money at the start. So you just find all the owners, you email them, and you say, hey, your item has 20 people viewing it last week. Do you want to improve the listing? Like right now it's this.
51:04And do you want to improve it? Like add images, add tags, add contact information, add a link to your website or something like that. Then click here and claim the item and pay for it. And then it's verified as well. So you just list the perks. It's verified with a checkmark. Your contact information is there and the link is do follow because that's important very often. Got it. There's so many different directions that this type of project can go and what you could build and how it can make money and how you can get traffic. And it's just lots of different niches and ideas spinning around in my head.
51:40Anything stand out to you as far as mistakes to avoid or common problems? Because you built dozens of these things and by your own admission, not all of them work. So does the hit rate improve over time? Or what do you see as mistakes to avoid for new directory builders? Well, one thing, use short names in the domain name. Interesting. The shorter the name, the higher is the traffic in my directors. There is like direct correlation between traffic and the name. Because when you're looking for a good name that has high traffic on Google, often it's something out of few words and it's long. and don't go for that.
52:21So don't do the best places to go and eat sushi. Like that's too long. Yeah, something six words, you know, dot info and like, no, no, no. Yeah, exactly. So buy only.com or org, like these two. Only these two work for me. The rest didn't work even with short names. Yeah, I guess.org sounds authoritative. Hey, we're building the go-to database directory in this niche and we got the.org to prove it. Yes. Yeah. Sometimes the org is better than com if you target nerds or technical people or like the people who actually like that domain. You don't have to be like a registered nonprofit or anything.
53:00It's just like anybody can register it, right? Exactly. Exactly. But you suddenly look like nonprofit. And that's why I should trust you more when you have the org. But both work really well. And more like a business level mistakes were that I didn't put enough attention into thinking through the directory. Because from one hand, a directory is something simple that lists all the items in the space. But you still have to have this wow moment where people enter it and they fall in love with it. For example, when I launched all GPT, the reason people loved it, there was one clear reason why I won that game.
53:41And it was there were 30k GPTs, 30 ,000 GPTs on the internet. It's a lot, right? How can you pick one? There were no reviews, no ratings, nothing. And if I put that on my directory, I won't have enough data to rank on them too. So I was thinking like I had to figure out how to sort this huge list. because every type of GPT had 100 clones. Whatever you type, it has 100 options. Which one do you choose? I invented this really simple hack where I went to Google and I counted the number of backlinks to every GPT and I ranked based on them because the more backlinks you have, the better is GPT probably.
54:26Like there has to be some correlation. And if you made a clone of somebody's GPT, it was clear. Like, for example, you search for math teacher, for example, and then one item has 500 backlinks and other has zero. It's obvious that the other one is like not used by anyone. It's probably not even good. And when I did that, suddenly the first page of my directory was so good. You come there and you try something and you see somebody put time into this GPT. and when you make a directory, you have to really think hard on what can you do that people try it and they say, wow, it's cool. And in my case, people love it so much that they went on Twitter and they started sharing it.
55:12So I did nothing. So I literally just launched it and it went to slip and I woke up and it was the most popular directory in the world. So why? Because some people saw it. I made a tweet, but it was small tweet and some people tried it, liked it, shared it, and then it was network effect because it was good. And with some other directories, I didn't do that. I just collected items and I made it okay, but it was not great. So I think one thing people should really understand is that like directors are easy to build, but it's really hard to make it great. Every directory I didn't put enough time into failed, or in my case, I don't say it's failed.
55:52It's just in get enough traffic. And now I have to go back and do the real work so that it's actually a good directory. Yeah, I love that line. Easy to build, hard to make it great. I think that's a metaphor for so many different side hustles and so many different businesses where it's like the motivation is so strong early on, you get the thing going, but then to really have that marketing flywheel start to spin, it's got to be great. Exactly. You know, to capture people's attention and get them to do some of that marketing on your behalf, how to turn one user into two, have them spread the word.
56:24It's got to be really a strong product. And that's the challenging part in turning through the data and sprinkling in your own industry knowledge and expertise to make it something that is really worthwhile. So I'm excited. Like I mentioned, dozens of different ideas spinning around as a result of this conversation. What's next for you? You've got all these SaaS projects, you've got all these directories, you've got the directory guide at johnrush.me. What's got you excited these days? Well, I really like to help others build businesses on the internet. And it just feels so good when I see someone launching a directory that's built on my website builder, that's using my blog generator, and the founder has read my directory guide.
57:11So I'll just do more of that. And I think my whole mission is to build tools and guides for founders. So now I launched one more guide called Founder Guide, where it's not just the directories, but it's the other things too. How to build SaaS projects, micro SaaS projects, no code platforms. And I'm launching more products to help the founders. For example, I'm launching one product specifically for directories. It's basically an AI agent that does the curation work for you. You still have to help it and you have to moderate it, but it does the scraping of the internet. It does the enrichment of the data.
57:47and it finds the emails of the items and then it helps you send them an email to claim the item. So basically I'm trying to automate the whole directory thing for myself because I have more than 20 and I don't have resources to run them all and I want to automate it. And when I automate it for myself, I basically automate it for the others too. Well, very good. We've got the founder's guide on top of the directory guide. We'll link up all this stuff. Unicorn platform was the directory builder platform of John's. We'll link all the stuff up in the show notes for you. All you got to do is follow the show notes link in the episode description, and I'll get you right over there.
58:22John, this has been awesome. Thank you so much for stopping by. Let's wrap this up with your number one tip for Side Hustle Nation. Enjoy the process, not the outcome, because it takes way longer than anyone expects or anyone says. And for me personally, it took more than 10 years to get to a place where I could build things and make money on them. So I think if you start this and expect to make money in a few months or a few weeks, you're going to have difficult times. Well, come on. Where's the clickbait headline in that? It took 10 years. Exactly. So I say things people don't want to hear, but I think the only thing you have to be focused as a startup founder or somebody who is doing site hassles is just be better than yourself.
59:08today you have to do better than yesterday and just try to learn because the business and side hassle is no different than musical instrument or sport like there's no secret to become good at sport you have to just do a lot of the sport and i think exactly same goes with side hassles or businesses you have to learn you have to learn to sell learn to build learn to design learn to market. And it takes years to do that. That's why look at this as learning. And then as a side effect of this, one day, you know, you will get great results. Be better today than yesterday. Enjoy the process. Wise words from John Rush.
59:50A couple of takeaways from me before we wrap. I liked the section on niche research first, trying to come up with maybe even a potential monetization model before you go into it, looking at the existing competition and seeing if there are already directories ranking, which, you know, an earlier me would have been discouraged by that. But no, John says, hey, that's actually a positive sign that Google is rewarding and ranking. If I can build something that is better, that's differentiated in some way, then there's a chance to compete and win there. I like the, you know, speed of execution part, this like, you know, quick launch, quick validation, like, look, if nobody likes a thing, then either back to the drawing board or try something new.
1:00:29Like maybe that just wasn't good enough. And I liked your line about, look, AI makes things look average. Don't be average. You gotta love the niche, fall in love with this problem, and really build something that is great, that is worthy of traffic and attention in an era of really fragmented attention. So build something that's great. AI makes things look average. Don't be average. Whether you're a first-time listener or a long-time listener, thank you so much for tuning in to The Science Hustle Show. If you're wondering what to listen to next, make sure to build your own personalized playlist.
1:01:01How it works is you go to hustle.show, you answer a few multiple choice questions, takes a couple minutes, you can do it on your phone, and it'll spit back out a custom curated playlist based on your answers for the side hustles or the episodes, eight to 10 episodes that will hopefully be most impactful and insightful and actionable for you based on where you're at, where you want to go. Again, that's hustle.show. Big thanks to John for sharing his insight today. Big thanks to our sponsors for helping make this content free for everyone. You can hit up sidehustlenation.com slash deals for all the latest offers from our sponsors in one place.
1:01:37Thank you for supporting the advertisers that support the show. That is it for me. Thank you so much for tuning in. Until next time, let's go out there and make something happen. And I'll catch you in the next edition of the Side Hustle Show. Hustle on.
From the publisher
Why should your first online business be a directory? This is one of the most overlooked yet potentially lucrative side hustles out there.
I've got a little bit of experience in this space (I actually built a virtual assistant directory years before), so this is something close to me.
But my experience is nothing like John Rush’s from JohnRush.me, who is a master at quickly building and marketing these little side projects.
He has launched 30 directories in just the past year, managed to monetize 10 of them, and even sold one (AllGPTs.co) for a sweet five-figure exit.
(If you want more resources, check out John’s full Directory Guide or his no-code builder at Unicorn Platform.)
Tune in to Episode 647 of the Side Hustle Show to learn:
Why directories are a great starter side hustle
How to pick the right niche
The tools and strategies to build your directory
Full Show Notes: How to Start an Online Directory as a Side Hustle
New to the Show? Get your personalized money-making playlist here!
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