Why Can’t Your Classifieds Site Perform Like CarGurus?
To be clear: CarGurus (NASDAQ: CARG) is not perfect. In fact, dealers have plenty of legitimate issues with the company (I’ll detail a couple here). But, when it matters, CarGurus more often than not delivers results for dealers. CarGurus, you see, easily passes the DISC Test (Does It Sell Cars?).
CarGurus, valued at roughly $5.5 billion as of this writing, is likely the most valuable automotive website today. We can argue their generously high P/E ratio at another time; but, given that the primary goal of any for-profit company is to make money for the owners, the owners (shareholders) of CarGurus are certainly pleased.
This begs a few questions: Why isn’t your classifieds website worth $5.5 billion? Why doesn’t your classifieds website easily pass the DISC Test? Why can’t your classifieds website perform like CarGurus?
CarGurus is saddled with (or, perhaps, blessed with) an odd name that – until somewhat recently – no one had ever heard before. Few dealers would spend money on the site and few consumers would visit it.
Then, they built a better mousetrap. They built a website so search friendly it almost immediately vaulted to the top spot on Google searches for the vehicles on your own lot – yes, ahead of your own website!
Funny, that a relatively new website with an odd name, originally founded as a community blog meant to provide advice to vehicle buyers, is now a vendor-partner with virtually every dealer I encounter. And, despite some misgivings about how they operate, dealers continue to send CarGurus a check every month. Why would dealers do that?
Leads and sales.
Shocking, I know, in this the-leads-are-dead-it’s-all-about-attribution-world we’re living in, dealers would value moving metal over branding.