The Most Overlooked Way to Make Money On the Internet | Ep. #164
May 2, 2025
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In this discussion, Frey Chu, a directory website expert, reveals how he transitioned from flea market flipping to generating up to $3,000 a month in passive income. He shares his insights on finding untapped SEO opportunities, utilizing tools like Ahrefs and Reddit for market research, and building simple yet effective directory websites. Frey emphasizes the importance of understanding niche markets and reveals monetization strategies that anyone can implement, highlighting the potential of this often-overlooked income stream.
Frey Chu emphasizes the importance of identifying low-competition niches for building profitable directory websites that generate passive income.
Effective utilization of SEO tools like Ahrefs enables entrepreneurs to discover untapped opportunities and optimize their directory sites for better traffic.
The journey of building directory websites involves trial and error, requiring patience as significant traffic growth can take months to achieve.
Deep dives
Understanding Directory Websites
Directory websites serve as platforms that organize specific information, often providing users with location-based queries. Examples include popular sites like Travelocity and smaller niche directories such as DryiceNearMe. These websites present opportunities for entrepreneurs to create profitable ventures with minimal initial investment. By identifying a market gap where search demand outstrips supply, individuals can build directory sites using simple tools and templates, often yielding passive income once they begin to rank organically.
The Importance of Niche Selection
Choosing the right niche is crucial for success in building a directory site. Beginners are advised to focus on low-competition areas rather than broadly competitive niches like towing or food, which require extensive knowledge of SEO and backlinks. For instance, exploring areas such as local thrifting, dog parks, or specialized services may present untapped opportunities with high search volume and low difficulty. The key is to utilize personal experiences and observations to find unique niches that others may overlook.
Leveraging SEO Tools for Success
Effective use of SEO tools like Ahrefs can significantly enhance the process of building directory websites. These tools help in conducting keyword research, analyzing competitor traffic, and identifying low difficulty keywords with high search volume potential. For example, by assessing keyword difficulty and search intent, users can discover opportunities that may not be immediately apparent. Additionally, leveraging existing successful directories can inform strategies for keywords and content structure.
Generating Passive Income through Directories
Building directory websites can result in substantial passive income over time depending on their traffic and monetization strategies. Initial efforts may yield anywhere from a few hundred to several thousand dollars per month, depending on the niche and approach taken. Examples illustrate that successful directories can maintain consistent traffic and revenue streams without ongoing management. By optimizing their sites for search and refining their monetization strategies, such as affiliate marketing or advertisement placements, creators can increase profitability.
The Journey of Directory Entrepreneurs
The journey to build a successful directory website often begins with a period of trial and error, where valuable lessons are learned through practical experience. Entrepreneurs are encouraged to remain patient, as significant traffic development may take months, if not longer, to achieve. Many find that the act of building multiple directories simultaneously can lead to unforeseen successes, accelerating overall growth. Ultimately, embracing the learning process and maintaining focus on niche markets contribute to achieving long-term success in the directory business.
I sat down with Frey Chu (https://x.com/freychu), who started by building profitable directory websites and later began teaching others how to do the same. We talked about how he went from flipping items at flea markets to pulling in up to $3,000/month in passive income from sites he barely touches. He broke down his process for finding untapped SEO opportunities, how he uses Ahrefs and Reddit for research, and shared a realistic approach to building simple, mostly passive websites that can steadily bring in income over time.
00:00 The Power of Simple Solutions 03:12 Opportunism and Business Growth 06:01 Navigating Online Criticism 09:23 The Nature of Selfishness in Business Relationships 12:16 Stress Management and Decision Making 15:09 The Role of a CEO 18:03 AI in Business Efficiency 21:54 The Impact of AI on Employment 25:18 Navigating Wealth and Parenting 31:53 The Reality of Entrepreneurship 36:15 Business Ideas and Getting Started 42:03 The Book Writing Journey
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