Web Designer has a quick chat with Rob Webber, commercial director of Richweb Media, the company behind comparison website Broadband Expert. The site compares broadband packages by download limits, speeds, set up fee, first year cost and minimum contract. Plus, they advise the type of usage each package is suitable for and provide a broadband speed checker and monthly download estimator.

What made you decide to break into the comparison site industry?

Three years ago, when a work colleague Richard Patterson and I decided to develop a web based business, the comparison site marketplace wasn’t saturated like it is today.
Having both worked at a company that provides competitive intelligence to online marketers, we had a fair idea about what would make a good online business. We were encouraged to try out our skills because we knew we could provide a better service to online consumers than many of the existing comparison sites, who we could see were still making big profits.
We set up www.broadband-expert.co.uk and took the plunge to go full time.

What skills did you need in order to set up?

When we began, we knew that an understanding of online marketing would be essential. You can build the best comparison site in the world but if you can’t get visitors to use it then it’s worthless. We turned to the internet to brush up on our marketing skills and read books, articles and magazines covering all aspects of online marketing to prepare us for what was in store, but it was – and still is – a learning curve for us.
We made a lot of mistakes early on by assuming we knew more than we did about the online industry. We learnt the lesson that it is important to get experts involved in the areas you are not knowledgeable about. For example, creating a comparison website relies heavily on search engine optimisation techniques, so we ensured we turned to the experts in this area for advice.

How has the comparison site industry changed since you started out?

It is getting more difficult to stay profitable in the comparison site business due to such fierce competition, especially in the more obvious areas like comparing credit cards, energy prices, loans, and even broadband. In order to remain successful and profitable, we try and dominate a few key areas rather than spreading ourselves too thinly.
For example, two years ago we chose to switch the focus of our UK broadband site away from home broadband to mobile broadband which was a growth area with less competition. We also run our business very efficiently and are very careful with costs. Additionally we have invested in technology so that we can pinpoint the advertising that works for us, allowing us to get the very best from our expenditure.

What are the opportunities for web designers looking to start out in the comparison site sector?

There are still opportunities if you can find a less competitive niche or an up and coming area. For example, we launched www.simonlyoffers.com in 2009 and this is now the leading site in this marketplace. We were quick off the mark to set up this site – and it paid off. If we’d waited just a few more months to begin establishing SIM Only Offers, then competition would have made it much more difficult to have succeeded.
The UK is leading the field in online marketing and comparison sites and the market is strong with some talented people involved, so we’ve launched sites further afield and now have broadband comparison sites in the US and Australia. Competition in these regions is weaker than the UK though there are a number of other hurdles that present themselves in its place.

What are the advantages of designing a successful comparison site?

Despite the fierce competition and a rapidly changing business landscape, there are big advantages of operating a comparison site business. You can maximise your return and reduce overheads by running your business from home. There are also generous returns from running even a small comparison website if you are savvy in keeping your costs to a minimum.

What does the future hold for Richweb Media?

Our future depends on developing high quality sites that offer real added value to the online shopping experience. Identifying opportunities to differentiate our site from the competition will be the key to making our sites stand out from the rest.