As a matter of fact, new directories have a high failure rate - high enough that I am scared of. According to my personal research and calculations as many as 70 to 80 percent of new directories fail in their first quarter of existence. In fact, I know far more people who could not establish a profitable directory than a number of people who actually do.

The following mistakes are the most important common causes of directory failures:

• Lack of experience: not having enough the know-how in order to run general or niche directory. (Most of the time niche directories appear to be much more successful than general directories)

• Lack of expertise: not having enough essential knowledge of directory operations, including seo, category creation, design and user usability.

• Lack of strategic leadership: not taking the time to set up performance objectives and to implement the strategy.

• Poor financial control: not keeping track of advertising campaigns, measuring its performance, and a failure to account and control all other expenses.

• Growing too quickly: lack of controlling expansion and addressing the right problems at the right time.

• Insufficient commitment: not spending enough time running the directory and not meeting performance objectives.

• Ethical failure: failing to act ethically and legally towards both customers and search engines.

I hope this article is going to help you understand the causes of your failure and ways to eliminate them. Please leave your thoughts and ideas by commenting.

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