One thing is clear, media is a hot M&A market currently and business media seems to be white hot. Besides the Business.com news, Rupert Murdoch seems to be nearing a deal for Dow Jones, owner of the Wall Street Journal.  These potential deals confirm that the value of online business media is increasing.

Up until the Wall Street Journal recently reported that Business.com may be in play, the company’s notoriety was based on the record-setting purchase of the Business.com domain for $7.5 million back in 1999. A deal worth $400 million would certainly turn an ugly duckling into a swan.

While Business.com describes itself as the “leading online business-to-business Internet Directory,” others claim it’s format and ads are hardly adding value to the web. The business model is simple – not unlike traditional yellow page or directory advertising.  You can pay to be listed for a flat fee of $199 or you can advertise on the site on a pay-for-click basis. Business.com promises a “targeted business audience of over 30 million monthly visitors.”

Here is the interesting part to me.  Will a listing on Business.com bring my business more traffic? For example, if you need “tank liners” to protect your chemical storage tanks, you may try a search in Google or other search engine.  If so, you see 2 million results including plenty of tank liner companies such as Royal Liner and Flexi-Liner.  You also see a small handful of traditional industrial directories such as the Thomas Guide. While Business.com shows up in the sponsored listings, it doesn’t show up in the natural search until the bottom of page two.  That is not helping much.

I admit, the aforementioned example is anecdotal and a random sample of one - so I, nor should you, read too much into it.  But it makes me wonder a few things. Would I rather have my business be at the top of a Google Search or at the top of a Business.com search?  Are my potential customers more likely to look for me in a Business.com directory or in a search engine search? Are they more likely to find me in Business.com versus a search engine? Will they trust a search more in Business.com or a search engine? Will they be more likely to buy from a business.com search versus a search engine?

One thing is clear, it is not a slam dunk to be listed on page one of a search engine. So maybe that is where the domain name has value. Business.com is an easy domain to remember and if I use it and it works, I am likely to return and use it again. With such a strong domain name, Business.com certainly has potential to be much more than directory. Maybe $7.5 million becomes $400 million and $400 million becomes.......??? if  a new owner can put more meat on the bones.

But as a small business, would I shell out $199 to be listed on business.com? I am not convinced. Only if I cannot get any traction in a search engine or in search PPC.

Perhaps Business.com’s valuation implies more about the lack of effective online marketing opportunities for small business than what it says about a great domain name and business.