My good friend and former Spoke leader, Ben Smith, launched his newest company last week. MerchantCircle is a new twist on local search. It doesn't aim to be a consumer destination site (at least that was the original goal), but I can see more and more MerchantCircle pages popping up when I do local directory searches on the web. In it's first week the company has already drawn high praise from industry pundits like John Battelle and Matt Marshall.
Ben and I first started talking about the idea behind MerchantCircle in 2004. It's a big idea. The end goal is to create a viral network of local businesses that support each other to acquire customers and drive folks into stores via newsletters and coupons. When we started 4INFO we did some informal focus groups with local stores to see if they would have any interest advertising on our mobile search service. What we found is the problem that MerchantCircle solves, the only real advertising local merchants do is in the yellow pages or newspapers. Trying to do advertising on the Internet is complicated because it requires them to have a web page that a customer can link on. Well presto, Merchant Circle has already created a web page with them, complete with blog, newsletter sign-up, coupons and more. That's value in anyone's book.
The question remains whether enough customers will find information on stores via Merchant Circle and request coupons or bring the MerchantCircle page into the local merchant to prompt them to sign-up for the service. Otherwise, the company will be dependent on other local businesses to walk around and recruit fellow merchants to join their newsletter groups. Hey, if it works it's going to redefine local search as we know it. I think the team is on the right track and this is the best solution I've seen. Kudos to Ben and the team for having the balls to try this.
The offical launch post is here.