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When ChatGPT was launched, everyone told me that my directory business was finished.
I will admit, I did not know what was going to happen. But even through all that uncertainty, I had a feeling that people would still want third party resources for local businesses. AI is not going to stop people from walking through the doors of shops, car mechanics, dentists, mental health facilities, and every other brick and mortar business.
I am happy to report that my directories are doing better than ever.
Today, I will break down some of the numbers and try to convince you why you should start your own directory as well.
LFG. 🔥
How To Build A Great Business Directory That Generates Traffic
Generating traffic to a directory through SEO is actually quite simple. Keep in mind, simple and easy are not the same thing, but the concept is straightforward. The trick is to ask yourself a simple question.
If I were a person looking for “insert business type here”, what kind of information would I be looking for?
For example, if I were looking for the best local ice cream shops, I would probably want to see:
Reviews
Taste of the ice cream
Average wait time in line
Is the place family friendly?
Do they have vegan options? Nut allergy alternatives?
How much does it cost?
Do they have actual kid sizes (not a kid size that is really a giant scoop of ice cream that keeps your kids up all night... iykyk)
If you want Google to rank your directory for search terms like “best ice cream shops in Denver,” you simply have to provide that exact information.
Google wants to send traffic to the websites that best answer the search query. Google’s entire business depends on giving people appropriate answers to their problems.
It really is that simple. Create a directory that solves problems, and the organic traffic will follow.
Why Directories Are Monetizing More Than Ever
This is not speculation, this is data.
I will be the first person to tell you that AI overviews, ChatGPT search, and Perplexity have impacted search. Media websites like news outlets, blogs, and affiliate sites are getting crushed.
General web queries like “how does an engine work?” or “top 10 travel tips” are getting rekk’d from “Zero-Click Search” and high organic traffic loss. AI Overviews synthesize these answers inline, so users no longer click through to blogs or information sites.
Local directories do not see the same trend lines or have the same vulnerabilities.
Here is why local directories are thriving:
Review Verification: Users facing high-risk decisions (medical clinics, emergency services, home repair) demand verified social proof. AI summaries cannot replace the trust of real customer reviews, local photos, and long-standing directory reputations.
Data Loop: AI engines do not eliminate local directories, they depend on them! When AI Overviews or voice assistants answer local queries, they pull directly from structured directory schemas and verified NAP (Name, Address, Phone) data.
LLMs Do Not Have GPS: Generative AI models don’t have physical data like live geolocation, inventory, or real time operational changes (for example, if a business is closed during a Jewish holiday.) Search engines rely on structured directory databases to prevent displaying inaccurate information.
The Local Reality: Unlike general top-of-funnel queries where users accept quick AI answers, local search has intent. People who search for local businesses are looking to buy a product or service. Searchers need contact details, exact directions, operating hours, and transparent pricing.
AI answer engines have actually made directories more valuable. When someone uses AI to find a local provider, that engine is pulling its answers directly from directory databases.
Directories win on both fronts: direct user search and AI sourcing.
Take my niche directory, Sober Nation, as an example. Below is our growth chart.
Traffic has only continued to climb. Featured listing sales have doubled, as have standard listings, claim listings, and sponsored posts.
How To Start Your Own Directory
Sign up for directorly.app.
With our platform, you can categorize your site by location or by industry.
You can use our AI agents to scrape the web and curate the exact data required to make your directory the authority in your niche.
After that, you just keep building.
The beautiful thing about directories is that the product and the marketing are the same thing. The product solves a problem for local searchers, and local businesses pay for exposure to those same active searchers.
If you focus on making your directory the best resource available, you automatically expand your audience while increasing the value of your listings.
The platform monetizes itself.
Conclusion: I Am So Happy I Committed To This
Entrepreneurship is an emotional journey, often much more than a logical one.
I felt plenty of anxiety when AI first broke into the mainstream. Knowing my directories relied on search traffic filled me with fear and anxiety. But I held on to one core truth: people will always need local services, and local businesses will always need leads.
AI does not change that reality.
I chose to stick to the fundamentals and double down on the boring business models that have always worked for me. I’m not trying to build Facebook, I’m trying to generate cash in my bank account.
Now, business is doing better than ever, even while people keep telling me the model is obsolete.
lol.
I am long on directories. I am long on boring businesses. I am long on building a personal brand and providing genuine value.
Love you guys. Talk to you next week.
Tim
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Hi Tim, I'm glad you're doing well. I think what you're saying is, people want genuine real time results, from other real people and their opinions which are based on first hand experiences. I hope that makes sense. It does to me because I want to do business with people that are receiving true value from me and then happy to pay me.
Tim, am I getting you right that you are saying across your content that selling knowledge is just so much... over? But selling results is always a solid thing?