LookSmart has lost most of its competitive advantages and is now loosing 2/3 of its revenue as MSN dumps them. They are aiming to cut costs to survive the storm...LookSmart flag at Half Staff
I suggest LookSmart does the unthinkable and change their business model one more time. Have ads be pay per click. Have the directory build free be their biggest asset, the Zeal community. Make commercial listings in the regular directory either free or low cost 1 time fee.
In doing this LookSmart would be able to provide relevancy and ads. Often times the two do not mix well when sold as a directory. Google, Yahoo, and most other major search engines (except meta search engines) are trying to keep ads seperate from listings. Either LookSmart, or everyone else in the search field is wrong...
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