Hi Remko,
Let's work through this scenario together. Let's say that I operate a lead-gen directory for auto dealerships in Texas. Like any business owner, I want to rank well, and my livelihood depends on the traffic I get and the conversions the businesses in my directory receive.
So, in violation of Google's guidelines, I list myself in Google My Business, knowing that I'm not supposed to. What can happen then?
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Any random Google user looking for an auto dealership and encountering my directory in the local pack can feel frustrated by the waste of his time in calling me or driving to my business only to discover I'm not an auto dealership. In his frustration, he can report me to Google for spam. And, he certainly doesn't trust my directory after this experience, seeing that I've misled him.
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An auto dealership owner in Texas who has been pitched about joining my lead gen directory may look at the local pack and decide that, in essence, I'm stealing a spot in the local pack results that he or any other legitimate dealership can't occupy because I've taken it. Angry about this, he can report me to Google for spam. And, at the same time, he will no longer consider my lead gen directory a place he would want to be listed, because it's not adhering to guidelines. He doesn't feel he can trust such my business. So, I've just lost a customer for life.
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The SEO team working for an auto dealership in Texas sees I'm violating Google's Guidelines, and can report me for spam.
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A Local SEO anywhere in the country sees what I'm doing while they're doing their job, and can report me to Google for spam.
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And, at any time, Google can realize I'm spamming on their own, either as a result of their algorithm detecting that my business doesn't meet their guidelines or because this is detected manually by Google staff.
The risks to me of any of the above 5 scenarios are that:
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Google will take down my listing, so my efforts at rankings will have been in vain and any marketing spend I put into this will be wasted.
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I now have a black mark against my business in Google's eyes for violating their rules. This could prejudice them against my whole business, and who knows what that might do to my organic rankings?
So, these would be the risks I'd be facing. And they are big ones. Most businesses would not want to deal with these risks.
What Would Be A Better Way?
So, I revisit my marketing plan**,** because I realize I can't afford to risk angering consumers and losing their trust in my brand, auto dealership owners who might become customers of mine, or Google upon which I'm dependent for traffic. I realize that it's not fair to take local pack spots away from legitimate car dealerships. And yet, I need to survive, so what is open to me?
I have two options: organic rankings and PPC. So, I'm running a lead-gen directory. In order to be successful, I have to prove to auto dealership owners that I can rank highly in the organic results for their core terms, so that I'm getting leads I can send to them. I have to acquire the organic SEO skills that will enable me to live up to this claim, meaning I've got to learn what it takes to earn those high organic rankings. So, this is where I turn all of my attention: earning organic rankings that I can legitimately have a claim to and without risking my business.
Where I can't manage to get organic rankings yet due to high competition, I am going to have to invest in PPC, just like any other business. Hopefully, I can chip away at this over time and move up in the SERPs as my directory becomes of higher value in Google's eyes, but until then, I may have to fill in the blanks with PPC.
What I've outlined here would be considered ethical marketing for my business, and respects the idea that I want to stay in business for the long haul. Unlike spam practices which mean the hammer can fall on all my work at any time, the practices my hypothetical directory has determined to take have the goal of building a brand that can be trusted by consumers, customers and Google for years to come.
To me, there is no question that this is a much stronger approach to marketing.