Choosing a category: the four tests we run before we build

Demand, fragmentation, decision length and enquiry value, and why we walk away from most ideas.

Building a directory is a twelve-month commitment before it pays for itself. Four tests decide whether we start.

1. Real search volume

People must already be searching the category by suburb, every month, without anyone prompting them. If the demand needs creating, this is the wrong format.

2. Fragmented supply

Dozens of small operators and no dominant brand. If two national players own the category, a directory adds nothing a comparison table on their sites doesn’t.

3. A considered decision

Buyers have to compare before they call. Emergency categories (a burst pipe at midnight) go to whoever answers first, and no listing changes that.

4. Enquiries worth having

One lead a week has to matter to the operator paying for it. That rules out low-value, high-frequency services and rules in anything with a long client relationship behind the first job.

Why most ideas fail

Usually on test two or four. Plenty of categories have search volume and fragmented supply but enquiries worth $40, which never sustains a listing fee. Walking away early is cheaper than launching and maintaining a site nobody monetises.