Bruce Marler listened to his clients. Then he changed his geodomain business model.

People weren’t very interested in buying local ads anymore. But they were interested in something else.

I remember to go-go days of geo domain names. There was an annual geo domain conference where owners of geographic domain names – e.g. city.com or state.com – got together to boast regarding their success.

But the business model for these domain names has always been a bit elusive. It shifted during the recession. The tried-and-true model of directory listings and display ads was questioned. It was harder work than many imagined. Businesses want clients in the door, not the chance of clients in the door.

For example, Chicago.com shifted from the directory model to vanity email. Now, following being sold, its homepage is all regarding events.

Bruce Marler, the entrepreneur behind Missouri.me, was doing OK with the directory/display model. He was also offering webdesign and mobile web products to local businesses. It was working – sort of.

“Businesses are tired of advertising people coming in over and over again to pitch them,” he told me.

Something strange happened when Marler started listening to those prospects.

“We had 5 clients in 3 weeks ask us for a loyalty card service as soon as we started doing custom mobile apps,” he stated.

So he abruptly scrapped the ad sales model and created a loyalty card app, right now branded as Missouri.me. During a two week soft launch period, 10 clients signed up. The number has grown since then.

Marler found that selling modest businesses on a $50/month loyalty card app worked a lot better than an ad placement.

Someone might click the ad. Which may result in business. But businesses can clearly measure value from the loyalty card app.

Times change. Business models must change. I’m going to keep on eye on this one.