MerchantCircle

About MerchantCircle

MerchantCircle operates as a digital marketplace and social network specifically designed for local small and midsize businesses (SMBs). The company was co-founded in 2004 by Ben T. Smith IV and its public launch was announced in June 2006. Smith, a serial entrepreneur and venture capitalist with a background in strategic consulting, also co-founded other tech companies like Spoke and Wanderful Media. His experience spans from advising large corporations to launching startups, providing a foundation for building a platform aimed at helping SMBs navigate the digital landscape.

The platform's core function is to enhance the online visibility of local merchants and connect them with customers in their area. It combines the features of a traditional online business directory with the community-oriented aspects of a social media site. Businesses can create a free profile, which serves as a detailed business listing where they can add contact information, services offered, and hours of operation. To further engage potential customers, merchants can upload photos, write blog posts, create coupons, and send out online newsletters through the network. This model serves businesses that may lack the financial resources or in-house expertise for extensive digital marketing. For consumers, the platform is a resource for finding local services, reading and writing reviews, getting expert advice from business owners, and receiving competitive quotes.

MerchantCircle's revenue is generated through a freemium model. While basic listings and tools are free, the company offers paid subscription packages that provide enhanced advertising solutions. These premium services include search engine marketing, better placement in search results, and the removal of third-party ads from their business listing page to minimize distractions for potential customers. The company's journey includes several key milestones, such as securing over $14 million in venture capital from investors including Rustic Canyon Partners, Scale Venture Partners, and IAC. It also made strategic acquisitions, such as online scheduler TimeBridge and RSS feed company Bloglines in 2010, to expand its service offerings. By 2011, the network had grown significantly, leading to its acquisition by Reply! Inc. for approximately $60 million.