When I first started building directories, I spent $500-$1000 (each) to build my first and second websites.
I still think that's relatively "cheap" to start an online business, but realize it's not cheap enough for people just dipping their feet in the directory world.
If my directories disappeared overnight and I had to re-build directories on a budget, my tech stack would look totally different.
I love Wordpress and will always use it in some capacity, but the plugins and premium themes add up quick.
Assuming I started with zero skills and just watched a few youtube videos around how to build directories, here's what my approach would be:
Step 1: Niche Ideation with Claude Sonnet 4
I would use Claude Sonnet 4 and toggle on the research button.
Why?
Because I’ve tried a lot of different LLMs and different models to try to find new directory ideas, but Claude Sonnet 4 (w/research toggled on) is the best option I've found.
For reference, I typically find 3-4 good ideas for every 100 ideas I research.
This weekend, I found 15-20 good ideas for every 100 ideas I researched with Claude code's Sonnet 4 + research.
Here's the generalized version of my prompt:
This is a research task. And the purpose is to identify any niches to build a directory around. I know there's a lot of options out there, but specifically, I'm looking for something very particular. I want to find successful directory opportunities in niches where on the front page of Google, there's already a directory ranking somewhere on that front page for that specific keyword. And it's almost - actually it's definitely always - a local keyword.
Here's what I mean by that. Let's say you have a niche that gets searched maybe 10,000 to 50,000 times a month (that's really the sweet spot I'm looking for, though I'll consider anything with at least 1,000-2,000 monthly searches). One of the key factors I look for is that on the front page of Google, there are directories already ranking. And not only that, but when you click onto these directories, they have location pages. You know, pages that might say something like "[Business Type] Los Angeles" or even statewide like "[Business Type] California."
Key Requirements:
- US market only - I typically build national directories
- Monthly search volume of 1,000-2,000 minimum, but ideally 10,000-50,000+ searches
- Location-based keywords - people search with city, state, or regional modifiers
- Existing directory success - directories are already ranking on Google's front page for these terms
- Location pages ranking - when you click through, these directories have dedicated location pages
Now what I'm asking for are niches where they're location based, and where the front page of Google is prioritizing and ranking location pages like this. So that I can understand which niches are good opportunities.
Please keep in mind that I'm pretty open to any category or industry, but here's the thing - what tends to work best is when you go really deep and niche. I'm not gonna find success with general broad keywords.
Think in layers - go deep:
- Start with broad category (like "shopping")
- Go one layer deeper ("secondhand shopping")
- Go another layer deeper ("thrifting")
- Go another layer deeper (specific brand or store type)
- Maybe one more layer deeper (specific service or product within that)
The more nuanced and niche it is, actually the better - as long as it's still searched pretty often every month by a lot of people.
So basically, I don't want you to just think surface level. Think about those really specific, deep niches where people are still actively searching with location modifiers, and where directories are already proving successful on Google's front page.
Claude Sonnet 4 wouldn't replace the keyword explorer in Ahrefs, but it's damn good if you're sticking to a budget.
Step 2: Data Collection with Outscraper
For scraping the data, I’d probably still use Outscraper. I don’t think there’s anything wrong with it.
- Prices can vary depending on how large your target area is
- Still the most solid option I’ve found
- Yes, there are alternative ways to scrape, but this is still my go to
Step 3: Smart & Simple Data Enrichment (Optional)
Data enrichment is the wild card.
Between factors such as nationwide vs. local directory coverage and the depth of "helpfulness" you're trying to achieve with data enrichment, costs can vary widely.
I’d personally scour the web for a directory niche that's very straightforward and simple.
Something where data enrichment doesn't need to be as thorough.
Typically, these are niches that don't require a lot of complexity and the problem I'm solving is centered around convenience + consolidated data.
It's really more or less just information on page.
The value of these types of directory niches comes from the fact that cleaning/parsing the data is a tedious task in itself.
(i.e. search up "liquidation stores" on google maps and you'll notice the types of businesses that come up. It's scattered and hard to tell which are discount stores, thrift stores or actual liquidation stores)
Step 4: Building with Claude Code + Simple Tech Stack
Then I would go straight into Claude Code and Cursor to build out the website. This is where it gets really budget friendly:
- Claude Pro: $20/month (that’s probably all you need)
- Hosting: Vercel
- Database: Supabase
- Version control: GitHub
This setup is going to be cheaper than any WordPress build with premium themes or third party plugins.
Since I'd keep it stupid simple, there wouldn't be a need for user authentication or complex databases which means it would be way faster to build too.
Step 5 + 6: Backlinks and Monetization
This is a tough one because, again, everyone does their own thing.
In my opinion, the best investment for backlinks is still ahrefs because of the link insert method that I talk about.
AKA finding a competitor, reaching out to a website that gave them a backlink, paying them $50/convincing them to swap out my competitor's link for mine.
I have youtube videos that touch on this in more depth.
Estimated total costs? $50-$150
You could probably get away with spending less than $50 to build this directory out before any data enrichment or scraping costs.
All in costs might be closer to $100-$150, but that’s already an incredibly budget friendly approach to start an online business.
Again, will vary widely depending on your project and niche.
I truly believe that this is the *best* tech stack that's both budget-friendly and that doesn't compromise too much in terms of workflow quality.
I've already chosen a niche where I'll be testing this workflow out.
Will probably make a video around this once it's finished!
Keep building,
Frey
