How to Build a Profitable Online Directory

What if you could build a website that earns thousands per month in relatively hands-off income while traditional SEO struggles?

That’s exactly what Frey Chu has done with his directory-style websites. While article-based content sites have been getting hammered by Google updates, directory content has remained resistant to these changes and continues to generate that elusive semi-passive income online.

Frey built his first directory in the thrifting space, and six months later discovered it was getting 1,000 visitors per day. He quickly monetized with ads and made $1,200 that first month without doing much of anything.

Today, Frey earns a few thousand dollars monthly from his directory portfolio at ShipYourDirectory.com and teaches others how to replicate his success.

Tune into Episode 692 of the Side Hustle Show to learn:

How to find profitable directory niches using data-driven research
Where and how to collect massive amounts of location data at scale
Proven monetization strategies beyond just display ads
Marketing tactics that actually work for directory sites

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Why Directory Sites Are Thriving When Blogs Are Struggling

People aren’t going to ChatGPT to find “barbers near me” or “daycares in Austin.” Local SEO operates differently than informational content, and the consequences of choosing the wrong local business are often too high for people to trust a simple AI prompt.

As Frey puts it, “With the daycare, you’re handing your child to some random people. I’m not just going to one prompt ChatGPT and ask, ‘Where are the nearest daycares?'”

There’s also the price sensitivity factor. You might call 10 different service providers and get quotes that vary by hundreds of dollars.

Your directory becomes the place that consolidates that information and makes comparison shopping easier.

The Business Model That Checks All the Boxes

Frey’s breakthrough came during a particularly dark period in his entrepreneurial journey. He was closing down a footwear business, feeling “super depressed” and at a “very low point.”

That’s when he got clear about what he really wanted from a business. Frey was looking for a business with 5 specific criteria:

Scalable
Cheap to start
Remote (no physical inventory or warehouses)
High margin
Sellable as an asset

He found two options: Software-as-a-service (SaaS) or websites. Since this was pre-ChatGPT and he wasn’t a coder, SaaS felt out of reach. That left websites, but not just any websites.

Directory sites check every single box. Once built and ranking, they require minimal ongoing maintenance while generating consistent revenue through multiple streams.

The Personal Connection That Sparked Success

Frey’s choice of the thrifting niche wasn’t random. He’d spent the previous year flipping items from flea markets and garage sales, paying his rent through reselling. “Most fun side hustle I ever had though, 100%. Like there’s no better thrill,” he says.

This personal experience gave him crucial insights into what thrift store shoppers and resellers actually wanted to know. It wasn’t just basic store information — they needed to know when new inventory arrived, which stores had the best selection, and insider tips for finding valuable items.

Finding Your Profitable Directory Niche

Frey recommends a 70% data-driven, 30% passion-based approach to niche selection. The data ensures there’s real demand and opportunity, while the passion component keeps you motivated through the inevitable challenges.

The Data Component (70%):

High search volume keywords with low competition
10,000 to 40,000 monthly search volume is the sweet spot
A clear “bounty” – an existing successful directory that’s outdated or clunky

The Passion Component (30%):

Something you’re genuinely interested in or curious about
An area where you already have some expertise or personal experience

Keyword Research Strategy

The most effective starting point: Search “near me” in Ahrefs and filter by:

High search volume
Low keyword difficulty
Keywords that show successful directory-style results

Some examples from his research that caught his attention:

Pizza near me: 2 million searches (though he warns this is harder than it looks)
Plasma donation near me: 40,000+ searches
Splash pads near me: 32,000 searches, keyword difficulty of zero
Laser tag near me: solid volume with low competition
Basketball courts near me: consistent local demand

Pro tip: Don’t just focus on the main “near me” keyword. Look for related city-specific searches like “plasma donation San Antonio” which often have much lower competition than the broad national terms.

The Three-Question Framework

When evaluating potential niches, Frey asks three key questions: “What saves people time, earns people money, or saves people money?”

This framework led him to focus on a specific type of thrift store that most people don’t know about.

The “Bounty” Strategy

Look for what Frey calls a “bounty” — an existing successful directory that could be improved. It tells you so much, especially with a lot of concern around SERPs changing.

If Google has chosen to rank a directory-style website on page one for months or years, it finds it trustworthy and matches user intent and search intent to some extent.

The key is finding directories that are successful but outdated, poorly designed, or missing important information.

Red flags to avoid:

Competitors with Domain Rating 90+ (extremely trustworthy domains)
Sites getting backlinks from massive websites that wouldn’t respond to outreach
Oversaturated niches (like food directories)

Data Collection at Scale

Once you’ve validated your niche, it’s time to collect the data. Frey uses Outscraper to pull information from Google Maps, including:

Business names and addresses
Phone numbers and websites
Operating hours
Review data and ratings

The process:

Research Google categories for your niche on Google Maps
Set up Outscraper to target specific locations and categories
Export everything to a massive CSV file
Clean the data (remove closed businesses, outdated info, etc.)

Adding Value Beyond Google Maps

The million-dollar question: If all this data exists on Google Maps, why would someone visit your site instead?

Two key value propositions:

1. Consolidation – People will pay (with time or money) for someone to organize scattered information into one useful place.

2. Specialized Data – Information that exists but in low-quality, hard-to-find ways. Examples:

Daycare pricing (requires calling each location)
Store restocking schedules for thrift shops
Equipment availability at gyms
Specific amenities and features

Frey’s thrifting directory success came from calling 130+ thrift store owners to find out exactly when new inventory arrives, then packaging that into location-specific guides.

Site Structure and Content Strategy

Two main approaches:

Pillar Page Directories: One comprehensive page per state/region listing all locations. Works well when people search for “thrift stores in Texas” rather than specific business names.

Individual Listing Pages: Each business gets its own detailed page. Better when people research specific business names, like daycares or service providers.

How to decide: Look at your top 3 ranking competitors and the most successful bounty site. What structure are they using? Follow what’s already working.

Monetization Strategies

Display Ads (Primary Revenue Stream)

Frey uses Mediavine Grow
His thrifting directory: $1,500-$2,000/month from ads alone
98% profit margins (minimal expenses beyond hosting and email)

Digital Products

Location-specific guides and schedules
Insider information that’s difficult to obtain
Frey’s thrift store schedules guide: $500/month passive income

Lead Generation (Advanced)

Partner with service providers for referral fees
Higher earning potential but requires relationship building
Example: Luxury porta potty directory where rentals are $2,000/day

Featured Listings

Paid placements like Yelp or TripAdvisor
Recurring monthly revenue from businesses wanting visibility

Software/SaaS Upsells

The highest-earning directories often lead to software products
Examples: CarParts.com, Retreat.guru (both 7-8 figure businesses)

Marketing and SEO Tactics

Reddit Validation First step after building: Post in relevant subreddits. “Hey, I made a website to make finding XYZ easier.” This provides:

Real user feedback
Ideas for monetization and additional features
Initial traffic and validation

Backlink Strategies

1. Badge Links: Create “Top 10 [Business Type] in [City]” badges that businesses can embed on their sites linking back to you.

2. Competitor Backlink Analysis: Use Ahrefs to find your bounty’s backlinks, then reach out to those same sites with link swap proposals.

3. Strategic Partnerships: Connect with complementary businesses (nutritionists referring to meal prep services, web designers referring SEO work, etc.)

Low-Budget Google Ads

Only $5/day budget works because there’s almost no competition for local directory terms
People are already searching; you just need to show up

Tools and Tech Stack

Data Collection:

Outscraper for Google Maps scraping
Enrich.directory for automated data enrichment (Frey’s co-founded tool)

Website Building:

WordPress with directory-specific plugins
Geo Directory plugin for large-scale imports
WP All Import for CSV data importing

Analytics and Research:

Ahrefs for keyword research and competitor analysis
Google Analytics for traffic monitoring

What’s Next for Frey?

Frey continues expanding his directory portfolio while exploring AI coding tools like Cursor and Claude Code to build functionality that wasn’t possible with WordPress alone.

He’s also passionate about helping others build location-based businesses through his YouTube channel @FreyChu and membership community at ShipYourDirectory.com.

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Enter your email to get my free Directory Ideas Database now:

You'll also receive my best side hustle tips and weekly-ish newsletter. Opt-out anytime.

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