Suggestions for developing webhost directory

[blueheelers]

I have a premium one word .com name that is related to Windows web hosting and development. The name is currently parked and receiving over 3500 uniques a month.

I'm tired of peanuts so intend to develop the site. My best option is a Windows web hosting directory (think webhostdir.com, hostindex.com, etc). Listing multiple hosts will help me ensure all bases are covered from cheap hosting to dedicated servers. It will provide the opportunity to sell software, payment processing, etc.

As far as monetizing, I am considering 2 options:
1) Affiliate links only
2) Free directory with paid upgrades and paid advertising

If it were a small site, I'd definitely go for #1. However, since this is a good name with great traffic, I think I may be able to pull off #2. When I webhosts and other advertisers paying hundreds/month/link, it definitely makes me question affiliate links.

Has anyone made enough on paid advertising to outperform affiliate links?

 

[blueheelers]

Any suggestions or experiences? I'm new to the board, so would I get a better response in the paid area if I joined?

Thanks

 

[hwy24]

I would recommend you start doing both #1 and #2. That is what I see most big web host directories doing. Yea it does seem dickish to make your paid advertisers compete with your affiliate links BUT thats what everyone else is doing so you're not going to stand out there.

So my suggestion is to try both and see which carries you further. I know that many of the large directories are using sales reps to actively find paid advertisers, so you might not have much luck there without putting in the effort of chasing down hosts.

to give you some reference, a web host can expect to pay $1000 for a 3-month listing on one of the top-10 web host directories. This is for a "standard" listing on a category page with 10 other hosts and of course affiliate links abound in the header and footer.