3 ms·
It's a bit of a different model though since Consumer Reports are often producing the reviews themselves (which may or may not include some survey data from use
by devrand 6y ago
It's a bit of a different model though since Consumer Reports are often producing the reviews themselves (which may or may not include some survey data from users) and have first-hand experience to editorialize.
With things like Yelp [1] and particularly with Glassdoor this is a difficult model to emulate. You generally expect users themselves to contribute quality reviews which you then publish directly (plus maybe do a bit of curation to gather sentiment). It's difficult to both ask users to pay you for the service and also contribute the very content you charge them for.
I think the only way to make a user review site work are:
(a) Be a non-profit and have a donation based model. Would people actually donate though? I'm not sure... but at least you don't seem like a greedy middleman.
(b) Charge a membership fee, but grant free durations of membership for quality reviews. The downside here is that you're likely severely limiting the already small pool of people willing to leave a review.
[1]: The nearest comparison to CR<->Yelp would be Zagat (well, pre-Google Zagat) and Michelin. However, they both only cover a narrow slice.
- nerdponx 6y agoWhat about Angie's List?
- function_seven 6y agoThey're just a clone of Home Advisor now. IAC bought them a few years back. They no longer charge their users.
- bryanlarsen 6y agoExcellent point. A glassdoor competitor cannot use the Consumer Reports model since you can't review the working conditions of a company without being inside it. It shouldn't take much money to set up and run a review site so monetization should be a soluble problem. On a 6 figure budget you won't be as slick as competitors but if you're competing on trustworthiness... The biggest problem is going to be combating gamification, that'll be very hard on a 6 figure budget. And even your non-profit suggestion is a problem because what if a company donates $1M with strings attached? I really think the only solution is that all money has to come from consumers. Job hunting is important enough that people would be willing to shell out for it, but only once you have a sufficient pool of reviews. So a real chicken and egg problem here.
- devrand 6y agoAh, to clarify my donation-based suggestion was for users to donate, not companies. Regardless, yes, if the majority of the money comes from a minority of the userbase (whether it be users and/or companies), you're going to have a bad incentive. However, making it a non-profit removes the burden of increasing revenue YoY. I think it's going to be very difficult to make it a viable business, particularly for the job market. It's a usually a fairly fixed size, and when it's growing it's usually not when people shell out for extra subscriptions. Could it work? Sure. But it's a business that while it might be profitable, it won't be growable. That'll make getting investments difficult, and the whole chicken and egg problem that much more difficult to overcome.