Looksmart Ltd, once known for its paid submission-based directory, has recently overhauled its business strategy, transitioning to a pay-per-click (PPC) model. This pivot has sparked a mix of confusion and frustration among its user base, as the implications of the new system begin to unfold. While the company touts the change as an enhancement, many customers are finding themselves entangled in a web of hidden fees and reduced service value. This article delves into the nuances of Looksmart's strategic shift, examining the impact on small businesses and the broader search directory landscape.
On April 3rd, Looksmart customers received an email introducing the Small Business Listings, a product that combined the features of 'Submit' and 'Site Promote' into a singular PPC offering. This announcement raised eyebrows across the industry, as it seemed to indicate a move towards a PPC model without clear customer demand for such a change.
A subsequent email on April 12th confirmed the launch of the Small Business Listings, replacing the previous services. Looksmart automatically updated existing accounts and offered incentives such as waived setup fees and free click credits. However, the catch was that customers had to "activate" their accounts by a certain deadline, which involved providing credit card details, to access these benefits.
Customers soon realized that the "free" clicks were capped at 100 per month, a stark contrast to the unlimited clicks under the old model. Reports surfaced of sites exhausting their monthly quota within hours of activation, revealing that maintaining previous traffic levels would require significant additional spending.
The new model imposed a $15 minimum monthly spend and limited sites to 1,200 clicks per year unless more money was paid. Additionally, updating listing descriptions now came with a $49 fee, and the system lacked the bid control features standard in other PPC models like Overture.com.
The transition to PPC also meant that sites previously enjoying high rankings might lose their positions unless they purchased "relevancy keywords." Furthermore, Looksmart's messaging suggested that non-paying listings could be removed, although this was not guaranteed.
Despite claims of creating a lower entry cost for small businesses, the startup costs were actually higher than the old Basic Submit model. The one URL per site limit also reduced the ability to direct traffic effectively.
Many customers reported discrepancies between the clicks Looksmart claimed to provide and the actual site traffic. The company's approach to migrating accounts without explicit customer consent further eroded trust.
As an SEO professional with multiple Looksmart accounts, the author of the original article expressed a refusal to invest further in the platform due to the lack of value and deceptive practices.
Industry experts like Danny Sullivan have noted Looksmart's aggressive account migration tactics. The company's prioritization of profits over customer satisfaction could lead to a decline in its user base as alternatives emerge.
Looksmart's strategy has been criticized for its apparent desperation and disregard for customer loyalty. The company's actions may have short-term financial benefits but could ultimately lead to its downfall in the competitive search engine market.
Looksmart's transition to a PPC model serves as a cautionary tale about the importance of transparency and customer-centric business practices. While the company may have sought to innovate, the execution of its strategy has left many questioning its future viability.
Disclaimer: The opinions expressed in this article are the author's own and do not necessarily reflect the views of Web Rank. While efforts are made to ensure accuracy, no guarantee is given for the content's correctness. Web Rank disclaims all liability for any inaccuracies found.
For further insights into the evolving landscape of search engines and directories, consider exploring authoritative sources such as Search Engine Land and Moz.
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