It’s the community, stupid!
23.01.2007 von Stephan Uhrenbacher(why did I use this headline: see wikipedia on Clinton’s 1992 campaign)
Yesterday, at the super-hip Digital Life Design conference in Munich, many already treated us as one of the big startups, as one of those who made it. This is too early.
However, traffic numbers for Qype are now very visible on Alexa, as well as the x-factor, which becomes visible once you visit the site. We managed to achieve this in Germany not by running parties, but by some other secret recipe which helped us achieve reviews in more than 2000 cities and a very lively community in more than 10.
One question that came from every other VC at DLD is: “what do you make of insiderpages and of Judysbook?”. Everybody reads techcrunch, and as Insiderpages have ented the “dead pool”, this obviously raised some eyebrows.
For those who have not been following this: In the US, Yelp is the only company to get any traction in “our space”, and they do an amazingly good job around physical local communities which was very visible since their start. In contrast, Insiderpages, funded by Sequoia and idealabs, was from the start a “yellow pages plus reviews” site, with clever design, but nevertheless, it still is “just a yellow pages service”. They bought reviews, giving people gas vouchers worth one dollar per review and redid the site quite often.
When we tested an alpha version for Qype in January 2006, we quickly discovered that people are not interested in yellow pages and business listings. People are interested in other people. We hence binned the whole site and started building something that focuses on the people active on the site, our authors. We also discovered that users did not like the traditional categories yellow pages offer (we also did not have the money to buy a yellow pages catalogue), and we were the first site to adopt tagging for local reviews. Despite the disadvantages, we still think that this was a good move. . Also, from the very beginning, I could not think of a model that works when you have to pay users. Not because you can not afford it, but because you will attract the content that you don’t want to have on the site: Not first hand experience, but just “generated content”. We rather focus on those who like what we offer them: A great forum, visibility, a great user experience.
In Germany, we originally had 7 companies competing with us, and the most important (well funded) one has all but withdrawn from the market after failing to get any traction. They had built a great yellow pages + review tool. Now in an admirably quick move they followed Judysbook’s move towards a “user powered shopping portal” and started dealjaeger.de
Sven, one of the founders, and myself agreed yesterday:
It was right to focus on the community and not on yellow pages.
And we (Qype) will continue to do so.
In the end this may mean that we will not have as many reviews for dentists, financial advisers, or other areas as yellow pages guys like to see on their site. In the end, Qype may remain just a platform for what people like or don’t like in their neighbourhood. Great!
In one of my next posts I will try and follow a new tradition and explain what works for us and what doesn’t.
Tags: dealjaeger, digital-life-design, dld, insiderpages, Qype, yellow-pages, yelp
23. January 2007 um 19:18
Hi Stephan!
Great post. And job well done! While I´m surprised & honored you quoting me in your blog, the quote is correct. But I guess the “And we will continue to do so.” are your words. In addition, you should mention Germany´s best directory assistance site by URL: http://www.dialo.de.
And please let me correct two statements in that post:
* We´re still working hard on Dialo.de and will continue to do so. Our repeat customer rate is currently significantly rising, since the new Dialo.de version (V2.1) is online. Check it out for yourself: Among many features we offer a truly unique map search functionality that none of the incumbants (e.g. GelbeSeiten.de, Klicktel.de) can match.
* We have NOT followed Judysbook´s approach. Dealjaeger.de already differs significantly and will soon be even more different. In addition, Judysbook combined yellow pages, service reviews AND shopping recommendations in one single site. I truly believe that does not make much sense.
Looking forward including Qype reviews in Dialo.de ;-) Best, Sven (Dialo.de- & Dealjaeger.de-Team)
23. January 2007 um 20:10
Hi Sven,
don’t worry, I will leave your comment in, and thanks for clarifying the dealjaeger bit, which I really had not picked up.
At least I kept my promise to blog about dealjaeger as requested ;-)
25. January 2007 um 9:26
[...] Stephan Uhrenbacher von dem Bewertungsportal Qype berichtet, dass seine Firma auf dem diesjährigen DLD-Kongress ohne Ende hochgejubelt wurde: Yesterday, at the super-hip Digital Life Design conference in Munich, many already treated us as [...]
25. January 2007 um 9:38
Daniel, bei allem Respekt vor Deinem ansonsten wunderbar durchdachten Blog:
Deine Schlussfolgerung lässt sich nun aus dem was ich gebloggt habe nun wirklich nicht ableiten.
Im Gegenteil: Qype ist nach wie vor noch relativ klein, und mein extra fett gedrucktes “this is too early”, bezogen auf die Behandlung als großes Startup hast Du weggelassen.
Wahrscheinlich hagelt es jetzt in anderen Blogs Kommentare, wie klein wir sind, wie viele im Markt sind, wie schwierig es ist mit local reviews Geld zu verdienen usw. Bin schon gespannt.
9. March 2007 um 10:38
“myheimat” könnte Regional- und Wochenblättern das Fürchten lehren…
Gestern lernte ich einen der Gründer von “myheimat” kennen. “myheimat” ist ein Stadtmagazin, das derzeit in 17 Städten (bzw. Städtchen) in Süddeutschland erscheint. Ein hochwertiges, gut gestaltetes, farbiges A4-Magazin, mi…
15. April 2007 um 21:06
Ist Google My Maps ein Qype-Killer?…
QYPE setzt neuen Google-Funktionalitäten Community-Building entgegen….