Just one month into the hyperlocal biz, and startup Neighbortree has $120,000 in angel money. The company hopes to build out a network of hyperlocal sites. I should say “hyper-hyperlocal sites,” since the company’s goal is to have sites as micro as neighborhoods and apartment buildings. The company offers its services for free to anyone who wants to start such a site. Writes TechCrunch:
“Evidently, the company aims to generate the bulk of its revenues from local businesses advertising on neighborhood websites, which can be equipped by locals with news updates, photos, a local events calendar, discussion boards and more.”
Neighbortree’s website explains a little more about its business model:
“…not only do we share a percentage of our ad revenues with our participating communities, we provide extra incentives when neighborhoods help us recruit advertisement and sponsorship partnerships.”
It’s going to be a tough sell, for sure. (“Would you like to buy an ad for our condo site?”) And depending on people in the neighborhood to post continuously is risky. At the risk of writing a cliche close, we’ll have to see how things go.
UPDATE: A post from “Neighbortree” (we have no reason to believe otherwise) further explains its business model:
“Thanks Steve! We actually sell adverting in groups of neighborhoods, by zip code(s) or by metro, by state etc. Selling advertising neighborhood by neighborhood would be hard, selling an ad to a local coffee shop or realtor for 10-20 neighborhoods in their radius, well that has been a little easier to sell. Plus we share ad revenues with then neighborhoods and raise additional sponsorship funds for our communities (for block parties, improvements, mini-scholarships, etc).”
We appreciate the clarification.