You need your competition

Part of the logic and emotions that drive paying to be listed in a business directory, is whether there is competition. Directories push the fear that because your competition is listed, you are missing out and letting them run away with all the business. We marketers react emotionally, often signing up out of fear...or arrogantly rejecting being listed because the competition is there. But realistically, what is the right answer?

What directories and marketplaces do (or should do) is create an environment where prospects can confidently shop. Seth Godin soothes us in this post from a week ago called The proximity effect:

"Too often we're beaten down by comparison shoppers and companies issuing RFPs and commodity buyers who won't take the time to hear our story. Too often, frustrated marketers believe that they'd do better if they just didn't have any competition.

In fact, the proximity effect can work in your favor. It usually does if your product or service is special. The proximity effect gives the consumer confidence. It creates a category where no category existed before. It lets you sell the difference, as opposed to the whole thing."

The proximity effect is part of the Hotelling effect. Don't know about this? First it is named after someone, not hotels and explains why Burger Kings can be found so close to McD's. Hotelling said that two competitors located centrally have access to the whole marketplace, instead of being separated and only having access to part of the market.

This is what drives our desire to be listed in Directories. Its the same as the physical world...its location, location, location!