Google, Google Business Referral Representatives, and the Hyper-Local business

Implications: • Google needs sales force to reach over 25 million US hyper-local businesses because self-provisioning has failed for the 1 millionth year in a row • Collecting data in this new program is not a sales force and will be a trail of tears • This program will have no success in developing cogent data or sales momentum initiative  

Analysis: Google has long realized that the Holy Grail in local advertising is a direct relationship with the hyper-local business. Hyper Local simply means it is so local as to be known largely to those that live around the business. These are your favorite neighborhood restaurant, plumber, lawn service, and mechanic that do not serve an area more than a few miles from their location. Google, like every other business in the world wants this direct relationship. They, however, think they have found a way to build that trusted partner with the Google Business Referral Representative (GBRR) program. It seems simple:

{Excerpted from
http://www.google.com/services/local-business-referrals/repfaq.html

"What will I be doing as a representative?

As a Google Business Referral Representative, you'll visit local businesses to collect information (such as hours of operation, types of payment accepted, etc.) for Google Maps, and tell them about Google Maps and Google AdWords. You'll also take a few digital photos of the business that will appear on the Google Maps listing along with the business information. After the visit, you submit the business' info and photo(s) to Google through your Local Business Referrals Center, and we'll pay you up to $10 for each listing that is approved by Google and verified by the business.

All you need to be a successful Business Referral Representative is a passion for helping local businesses succeed, a love for the Internet (some knowledge of Google is great, too), and access to a computer and a digital camera."

In order to have the tools, a person will need a PC and a digital camera. In commuter cities such as Los Angeles, a car might be helpful.

Here is why it will not work.

First, the relationship between Google and the representative smacks of myriad emails, handbills, and direct mail pieces shoved in the recycling bin every day claiming you can “make a living working from home”. The economic structure is as follows:

[Excerpted from
http://www.google.com/services/local-business-referrals/repfaq.html]

"How much will I be paid? How will I be paid?

You can earn up to $10 for each approved, verified referral you submit. This includes $2 when a business referral is approved by Google; and $8 when an approved business verifies that the information you submitted is accurate. Referrals are approved by Google based on the completeness and quality of data supplied by representatives. Businesses verify their information either by sending us a response postcard or verifying their information online.

As long as your earnings total at least $25 a month, you'll receive a monthly check."

Source: http://www.google.com/services/local-business-referrals/repfaq.html

$2 for getting to a business and copying its basic extended data (hours of operation, methods of payment, Brands carried, etc) seems very easy. Educating the business about Adwords and Google Maps (assuming the GBRR has any understanding of these that continue to perplex seasoned ad professionals) is a little more difficult. Every interaction will take the time of an owner or manager in such businesses. Getting that time will be difficult. Local businesses are not all that interested in Google’s agenda; they are very interested in their own agenda. That agenda is largely consumed with finances, management, inventory, employee issues, and, when time allows, sleep.

Yet, assume that a GBRR that owns a PC of some quality, a digital camera and an eye/understanding of photography and marketing, the gift of sales and prospect education, can find it economic to fill in 10 of these referrals in a day (assume that each will take 30 minutes to an hour) including taking pictures. It is important to note that many businesses, for competitive reasons, will simply not allow pictures to be taken. For a whopping $4 per hour (not including the amortization of hardware and soft costs of fuel/insurance/depreciation, or a basic bus pass/shoe leather) the GBRR can submit to Google their work product. A hard days work for $20 “when a business referral is approved by Google. Referrals are approved by Google based on the completeness and quality of data supplied by representatives.”  Understanding that this approval will require a real person to make sure what has been submitted is real as well, this process can take some time. Once the “approval” is provided for the gazillion fast food restaurants and pictures, the checks should be flowing, right?

Not so fast. The second stage payment of “$8 when an approved business verifies that the information you submitted is accurate” via post card or online. Again, this will take the time of a leader of the business, the recollection that this event happened, and a really good bit of luck to actually get the business to verify the information. If you have questions about the expense and duration of this part of the process, look no further than InfoUSA, the leader in local business data verification, and ask why, if this is so easy, they have not been able to get more than about 50% of all businesses in the data base, let alone inclusion and verification of extended business data.

If the absurdity of this program has not hit you yet, think about the “other” issues. For example, how will territory be assigned? What happens when two GBRR’s submit the same data for the same business? How will the GBRR establish to the business (of which no more than 10% have a relationship online) that they are who they really are? Will Google allow them a business card? What is the Brand implication to Google when (not if) an untrained, unprofessional GBRR misrepresents or offends? Even though the relationship between the GBRR and Google is one of independent contractor status, a person wandering into a hyper-local business and requesting competitive information based on the “trust me, it for Google” line will likely be discouraged away within a day, if they even get past the “we will throw you under a bus and own all the value created by you” Terms and Conditions a GBRR must agree to [see: http://www.google.com/local/referral/terms} in order to apply.

The real irony is Google missing what they do not know: the fluid nature of hyper-local business that makes a 100% perfect database corrupt the very next day. Hours change. Brands change. Methods of payment change. Locations change. Names change. Businesses open. Businesses close. Over 3 million local businesses move to a new address every year. Phone numbers change. Who will maintain this data? How will it be recertified? Users expect perfect data every day.

I do not believe that Google will have to deal with the maintenance of this local business data, however; the GBRR will be a foot note in the book of failures entitled “It’s easy, All you have to do is …”