Getting to Know Yelp's Business Model Followed By a Packed Party Complete with Drink Spill

UPDATE: The Yelp folks sent some points of clarification to this post, see below. Also, I've received some comments/concerns about 'drinking the Yelp Kool-Aid'. That's what comments are for folks. I write what I hear. If there are pieces of the story I'm missing, comment away...

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The Communications Director of Yelp, Stephanie, reached out to CTR to meet, chat and fill me in on Yelp, developments, etc. With recent questions I received from the local Yelp user base, I took her up on her offer. Yelp's Chicago manager, Andrea, also joined us.

We met up at Tempo and thanks to your questions, I had topics to discuss right away.  The first question many of you had: 'It seems that Yelp's marketing blurs with user generated content. Are companies stacking the reviews?' The Yelp team reminded me that yes, advertisers can buy terms, similar to the Google Adwords model,and appear on top of search results.[ From Yelp:  Qualified Yelp businesses can advertise with Yelp and part of that includes impressions in our search results based on category (not keywords) Here's a little more info on our sponsorship program."]

For example, I just typed in 'pizza' and got an orange shaded sponsored ad for Aurelio's Pizza. The word 'sponsored' is clear.

There are tweaks a business can do to 'soup up' their business listing as well.  Stephanie also mentioned a past scam that Yelp was able to squash. A series of business owners with complementary skill sets were commenting and reviewing on each other's businesses. I don't know how complex the algorithms are over at Yelp, but yes, there are checks in place to make sure people don't game the system.

Another question you had 'It's expensive for small business owners to list their service/product.' Yelp does have a free way for a business to list their business,  by claiming it.  Ad rates start at about $150, depending on the vertical you are in.

I attended a bit of the Yelp Around the World event last night. The Elite Yelpers had access to the party from 7-8. I got there at 8:15.  One of my friends is part of the Elite squad and was there at 7:30 and couldn't believe how packed it was. Food, drinks and dessert stations lined the walls with free sample galore. This is a terrific way to thank those reviewers for contributing the majority of content to your site, so yes, you should supply the goodies.

What was interesting was what I heard from multiple people when I got there for the 'public' portion at 8:15. 'You better get the food before it's gone'. Wow - that's terrific. Looks like the Elite pack came in full force. What isn't terrific is being 'prepped' with this information as you walk into an event that is publicized as being open to the public at 8 with plenty of food, drink, etc to sample. Of course, I completely understand how it is to plan a mass event. Last minute show ups, etc. 

Our group got to the top of the Dank Haus and were greeted with tons of folks and bumping music. The DJ was terrific, but as I talked to friends I knew at the event, they couldn't talk to each other that well. Yelp is about reviews and communicating,  yet the event's music was so loud, the people in the room were screaming at each other:). I hung out with a 3-year Elite veteran and he had a good time, but was keeping to himself and the food. Too hard to meet up with his crew and ask how life is, etc.

I also had someone bump into me and spill a Cosmo down my white cardigan. Needless to say, I spent much of my time dousing my sweater with water:) The food that I did sample was delicious, the music was inviting, but too loud. We stayed just under an hour and met friends out in Lincoln Square for drinks.

In a nutshell:

• Yelp does their best to make sure folks don't game their ratings system
• Advertisers can buy ad space, yes, but when they show up, it's supposed to be set apart from the reviews [From Yelp: This is incorrect. The unique thing about Yelp is that we always tie your reputation and reviews to your sponsored ads in search.]
• If you are going to have a big bash for your reviewers, you may want to adjust the volume a tad so they can talk:)
• Carry a Tide to Go stick with you at all times

It was nice meeting you, ladies!
Pictured, me and Shane

Comments

[Laura Roeder (Shortcuts Online Marketing Blog)]

I advertise on yelp, so if you have any questions about yelp from an advertiser POV let me know.

[Generic Viagra]

Hello very very interesting blog!!

[Viagra Online]

Hi I attended a bit of the Yelp Around the World event last night. The Elite Yelpers had access to the party from 7-8. I got there at 8:15. One of my friends is part of the Elite squad and was there at 7:30 and couldn't believe how packed it was.
John B. Barnhart