I’m embarrassed to say that, after 3-1/2 years in business and almost 12 as an internet professional, I’ve only recently made sure my company was listed in local search. Sure, some of it was the usual problem of the cobbler’s children going shoeless, but it’s more than that. As an internet consultant, I just don’t think of myself as a local business. After all, my online reach is global, right? Sure, in theory, but here are 5 reasons why, in practice, we’re all still local businesses:

Unless your product is 100%, completely virtual, you still have barriers. It’s easier and cheaper to sell to your local market. Even if you have a virtual product or sell services, that product will likely be affected by cultural differences, language barriers, time zones, etc. Your site may be available globally, 24/7, but that doesn’t mean you have a global audience.
Let’s say, for argument’s sake, that you do have a global product, or at least a national one. What about the other aspects of your business? When you go looking for talent, word-of-mouth, funding, and even your first few customers, where are you going to start? You start with your network, and more than likely that has a huge local component. If location were irrelevant to the internet, there would be no Silicon Valley as we know it.
Building a website is relatively easy, at least when it comes to the basics. Anyone can set up shop and put up a veneer of credibility, but having a real, physical location is still vital to gaining trust. Even if you sell a global product, you have an office and a phone number, and that real-world presence matters to customers.
Search is evolving, and local search, with the advent of smart-phones and GPS, is changing rapidly. If you haven’t established yourself in local search, you’re probably missing out, no matter how big you think your market is.
Sorry, but getting a virtual beer on Facebook is just plain lame, even if it is free. We wouldn’t still have conferences and tradeshows if face-to-face contact didn’t matter. No matter how virtual your business is, it’s still ultimately about people, and (for now, at least) you’re more likely to do business with the person you had lunch with than the one you met on LinkedIn.
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