How to overcome credibility issues in setting up an online business
directory in australia to get subscriptions for business listings? In
Australia many online directories in the past have not delivered or
folded leaving customers dry after having paid the annual
subscriptions. We are genuine and offer value for the product we are
offering. Thank you

Ashok,

I am not familiar with your online business, but the most obvious
answers to a generic online business is 1) to design a 'guarantee of
quality' system (e.g. money back) 2) to deliver that guarantee promise
3) to design a system that allows future customers to see that you are
delivering on your guarantee promise.

Go into equivalent online business for American companies, and see how
they deal with it.


Unfortunately, changing peoples perceptions based on their past
experiences is very difficult, but if your service is truly worth the
money, then slowly you will get customers.

Claudietta

As someone who has experience trying to sell an online library of
information online to businesses, the best way to create credibility
is not to ask for money at first. Offer your services for free because
the only way credibility is built on the internet is by concrete
proof. Once you generate enough traffic to your directory as a free
service, you can start charging people a subscription price and
justify it with concrete proof. If you don't like the idea of offering
all of your services for free, consider having a free directory with a
"gold member" option where you get a bigger description or direct
hyperlinks for an additional cost. I would check out directories for
Yahoo!, DMOZ, and other big directories for ideas.  Remember that a
directory is not going to be instant money and it takes time to build
a reputation. There is no magic formula.

I like the suggestion provided by leeann-ga.  I would just like to add
that if going for the free directory is not an option for you then to
charge on month to month basis (monthly fee rather than annual fee).
This way your customers can be assured that they are not out of lot of
money if your directory does not do well.

I agree with the suggestion of a payment model that limits the risk
the company is taking... free or monthly.  Perhaps supported by ad
revenue from an top-notch name brand office supply company in your
country.  Consider giving them free ad space for a while... if a
legitimate company is advertising with you, that will lend
credibility.

Further, be blessed by a respected organization.  For example, work
out a deal with the equivalent of your chamber of commerce.  Another
example is something like American Express's small business resources.
 If you can affiliate with something known to be credible, your
company will have greater legitimacy.