Not everyone should start a genealogy business, especially if your goal is to make a lot of money. "Very few of us actually make a living off of genealogy full time," Copestone Resources LLC's Barbara J. Ball, CG (Certified Genealogist), stated.
But starting a business in this field is not too difficult. To identify oneself as a genealogist, you do not require an official certification. However, it is advantageous if you already possess some of the qualities required for success in the field.
The need for these services is rising, particularly in light of the COVID-19 pandemic that has forced many people to take refuge at home. Americans' interest in genealogy is also being fueled by the accessibility of DNA test kits and websites that provide access to a wealth of family history.
Author and professional genealogist Pam Anderson listed five skills as essential traits of prosperous genealogists and business owners in her article "Transferable Skills: You're Quitting Your Job to Do What?!" for the Association of Professional Genealogists Quarterly.
- Self-starter
- Goal-oriented
- Analytical
- Effective communicator
- Client-centered
You're off to a good start if you can relate to this.
Launching a genealogy business: first steps
Depending on how much experience you have, you might want to gain more knowledge before pursuing a career in genealogy. American Genealogy Studies is an online course created by certified genealogists and offered by the National Genealogical Society. It's a self-paced course.
A Professional Education Certificate in Genealogical Research is available online from Boston University. There are only certain times that these classes are offered.
The ProGen Study Programme, which is based on the textbook Professional Genealogy, was also suggested by the genealogists we spoke with. Both the practical side of operating a genealogy business and the field of genealogy are covered in this programme.
The next logical step is to define your company.
Craft your mission statement
Describe your services to people in a few compelling words. This could serve as your company's compass. It will assist you in maintaining focus on the issue at hand without outlining your plan of action.
Here are some instances to think about:
- I assist those of Panamanian heritage in learning more about their forefathers.
- For those who are interested in learning about their past, I rediscover it.
- For those who run into problems with their genealogy, I solve historical mysteries.
Define your revenue model
How are you going to get money? There are numerous approaches to making money. Selecting the model that best suits your genealogical business can help you concentrate your efforts. The three business models that are most likely to put you in a successful position for a genealogy company are production, subscription, and fee for service.
Fee-for-service model
In the field of genealogy, the fee-for-service model is the most popular for individuals with specialised skills.
Consider physicians, attorneys, and personal trainers. They are all paid by you (usually on an hourly basis) for the special skills they provide you. Why? since you yourself lack these abilities.
Or perhaps you already do. Consider a babysitter or a housecleaner. You can watch your children or clean your home, but there are times when you need assistance from someone else.
Consider a photographer or plumber who may need a fee-for-service contract due to their specialised equipment.
An additional example of a special talent is genealogy. In most cases, fee-for-service is employed by genealogists.
The most popular way of billing is asking for payment by the hour from clients. Like auto mechanics, genealogists are sometimes faced with mysteries that must be solved by "popping the hood." It is never certain for genealogists what their clients are looking for.
Many genealogists begin their work with a predetermined number of hours to answer a specific query, like "Where was my mother's father born?" It's okay if the research offers a neat response to the client's query.
However, the client may agree to pay for more time if more research is required. For example, a client may consent to a longer delivery time for records from an overseas archive.
Franklin County, Pennsylvania, genealogist Pam Anderson stated, "I like to do it in small phases." "To see how we work together, I prefer to work no more than 20 hours at a time."
Production model
The model for production is extremely basic. Someone pays you for something you make. Consider an automobile manufacturer or a jewellery designer. or a cultivator.
Although it is not a product in and of itself, genealogical research can be made into one. A 20-page family history or a family tree with at least five generations' worth of information could have a standard price assigned to it.
Subscription model
The model of subscriptions is becoming more and more popular because of the introduction of automatic renewal billing. A business that relies heavily on subscriptions is a fitness gym. The fundamental concept is that you pay for a service's access regardless of whether you use it or not. Convenience is the benefit to the customer. When they need it, it is available.
The popularity of the subscription model among genealogical enthusiasts has been demonstrated by Ancestry.com. However, Ancestry.com subscriptions only grant users access to their resources; users are still required to conduct their own research.
If prospective clients are curious but lack the time, they might be prepared to pay a monthly fee to access your knowledge.
What’s the competition?
When most people think of competition in business, they usually picture two companies competing against each other for supremacy, such as Coke and Pepsi. However, most businesses face more complex forms of competition.
It's not just other similar services that compete with you. Your competitors may also be your customers, or they may be from entirely different industries. You must comprehend the problem the customer is facing, your solution, and how to make it stand out from the competition before you can respond to the question of who your competitors are.
What is the problem your customers have?
- They are worried about health problems and don't know anything about their family history.
- They run into a dead end while looking up family members.
- They feel unfulfilled in life and yearn for a closer relationship with their history.
An absurd hypothetical: What if you found a thousand-strong descendent of Henry VIII's long-forgotten daughter? These people have an issue that they are unaware of: how to establish their royal status!
More seriously, trustworthy genealogical research may warn people of potentially dangerous health risks as medical research continues to uncover the genetic causes of many serious diseases.
How is your service better?
After you've determined who your competitors are, you must determine how your service offers your clients a better option than what they have to offer. Successful goods and services frequently include:
- Simpler
- Faster
- Higher quality
- More efficient
- Less expensive
- Some combination of the above
Which of the aforementioned advantages can you offer prospective clients that no other company can?
Possessing a Ph.D. in American history and thirty years of experience in the field of genealogical research might make you stand out from the competition. Being a quick writer and researcher could allow you to charge less or deliver research faster than your rivals. Should you possess specific expertise regarding Portuguese immigration during the 1830s, you might be able to fill a void that other genealogists are failing to address.
Pennsylvania's genealogist Pam Anderson resides in a rural area of the state. Hers is the only genealogical service provider in her community. Anderson is the best resource available to people from out of state who wish to look into a local ancestor.
Why would someone pick you to solve the same problem when they have other options? A business lacks a purpose if it doesn't have one.
You should modify your mission statement to reflect your advantage or niche as soon as you have a competitive advantage.
Marketing
You've already given careful consideration to the issue you wish to resolve for your clients. It's time to consider the clients directly now.
Creating a customer persona
One essential tool that all successful marketers use is customer personas. A business such as Nike develops comprehensive buyer personas, or customer profiles, of the individuals most likely to purchase athletic footwear and apparel. Nike keeps these personas in mind when developing merchandise, ad campaigns, and social media content.
Your company's marketing efforts are maximised when you create personas. You can start with these ten free customer persona templates.
You'll need to respond to inquiries like these regarding your prospective clients in order to finish them:
- How old are they?
- What is their education level?
- What is their salary?
- What motivates them?
It's likely that you have multiple potential clients, but try to limit the total number of personas you have. A decent place to start is with three to five personas.
COVID-19’s impact on the genealogy market
Millions of people are spending more time online and inside their homes as a result of the COVID-19 pandemic. The market for genealogy has expanded as a result. Customers who may not have had the time to research their family history in the past but now have the opportunity are becoming more interested in doing so.
The pandemic has opened up new avenues for expanding an already established genealogy business or launching a brand-new one. Ultimately, an at-home setting is ideal for a genealogy business. To get started, all you need is a computer, some family tree software, and a video conference app. An appealing way to raise extra money during the pandemic for genealogical hobbyists is to start an at-home business.
Not just business owners are aware of that. For $4.7 billion, the investment management company Blackstone purchased Ancestry.com in August 2020. According to Reuters, David Kestnbaum, senior managing director of Blackstone's private equity group, the company sees more room for expansion at Ancestry as more people show an interest in discovering their ancestry.
There is financial assistance available if you are having trouble with your genealogy business during the pandemic and already have one. The U.S. Small Business Administration (SBA) provides low-interest, long-term loans through its Economic Injury Disaster Loans (EIDL) programme and forgivable loans through the Paycheck Protection Programme. President Joe Biden pledged more aid, but it's unclear if and when a fresh round of stimulus will be approved.
Reaching potential customers
It's time to locate your customers now that you know who they are.
Where does each demographic that uses your genealogical research services spend their free time? Here are a few options:
- On social media sites
- In front of the television
- Listening to the radio or history podcasts
- At gathering places like churches, malls, parks
- At community events like festivals and parades
- At gatherings of groups dedicated to genealogy or history
And where do they look for information to address the issue you've pointed out? These are a few of the most plausible choices:
- Search engines
- Online genealogy forums
- Genealogy or history magazines
- Local historical societies and archives
You can start reaching out to your customers once you know where they are.
Advertising
The most straightforward way to tell customers about your service is through advertising. Your message needs to be direct and concise because most advertising is interruptive.
Social media
You can target potential customers on social media platforms by utilising their interests and demographics. You could make an advertisement that is only visible to women in their 40s who live within ten miles of your business, for instance, if that is one of your customer personas. Alternately, you could go after any state resident who has a fascination with African history.
The social media platform with the most comprehensive and efficient targeting is Facebook.
Television
Producing and airing television advertisements is costly. They typically only make sense for businesses that sell in large quantities (like fast-food restaurants) or high-priced goods (like auto dealerships). A genealogy company does not meet either of these requirements.
Radio
Radio advertisements reach a larger audience than television advertisements, but they are also less costly. More people outside of your target audience would likely see your content than inside it. For a genealogy business, radio advertising is not likely to be cost-effective.
Podcasts
The podcast market is booming. Over 550,000 podcasts are available, with the majority being directed towards specific niche audiences.
Those who are interested in the past are probably also interested in their own past, which makes history podcasts one of the most popular genres. Podcast sponsorships can be achieved at a reasonable cost. Reaching your target audience could be made easier with the right podcast.
Search engines
Google, the most widely used search engine, allows companies to show advertisements that show up when users type in a specific query. Google these important terms for genealogical research to get a sense of the landscape, and take note of which advertisers come up:
- Family tree
- Census records
- Find ancestors
You probably saw some of the key figures in the genealogy industry. Search phrases that are frequently used for advertising can be the most costly (if you want more proof, look up "buy a car" or "fly to Paris").
Alternatively, you can target any term with your search engine ad. Consider the segments of your customer base. What particular phrase or term would they type into Google to conduct a genealogical search? It could say something like "ancestors Korea" or "church records Sonoma County." We refer to these as "long-tail" terms. To reach the clients who are most likely to require your service, you can focus your advertising on these particular terms.
While direct advertising is the quickest way to attract clients, it is also the most expensive.
Direct referrals
The most lucrative client is one that you can obtain without spending any money. Your company can be far more successful if you can figure out how to draw clients for nothing.
Local genealogy spots
Part of how South Central Pennsylvania's Pam Anderson became a genealogist was by accident. She provided research assistance to individuals looking up their ancestors while volunteering for the local historical society. There were times when those folks required a record kept exclusively at the courthouse. Since no one else could take care of these people, Anderson said, "I started feeling bad for these people."
She started providing these services herself, and the main source of business for her is still direct referrals from the historical society. Of her twelve new clients in 2018, six, according to her, came through recommendations from the historical society.
Genealogy directories
You can be included in the directory of the Association of Professional Genealogists by becoming a member. You can search the directory based on your location and area of expertise.
Content marketing
Search engine rankings and social media visibility can be attained without advertising. Creating your own website, blog posts, e-newsletter, graphics, videos, and other assets to promote your business is known as content marketing.
Your potential clients will find you through content marketing. You may, for instance, put together a Guide to Tracking Down Greek Ancestors for your website. You might be able to use search engine optimisation to make this page appear highly when people search for "finding Greek ancestors" and similar terms on Google. People who were interested in the subject would learn about your services in this way.
Reaching out to customers through content marketing can be particularly successful for knowledge-based companies, such as genealogy research services. It is a long-term investment, though, as the majority of content marketing campaigns don't yield results for at least 18 months.
Word-of-mouth advertising
It's likely that you've heard that word-of-mouth marketing works best. A product's recommendation from a reliable friend or associate has great power.
But this isn't the right approach to launch a company. Before you can receive a recommendation from a customer, you must first acquire one.
Word-of-mouth marketing aids in business expansion. When you finish a project for a client, think about how they could assist you with the next one. Could they introduce you to someone? Don't rely on word-of-mouth to spread by itself. Act as a stimulant.
Business expenses: location, equipment, resources
To do your job well, you need a place to work as well as a few supplies and services. To ensure that your first few months go smoothly, it's a good idea to identify these needs early.
Firstly, where will you be employed?
Home-based businesses
One of the best things about running a home business is that you don't have to pay for an office. Your commute will be short as well. But there are disadvantages.
Depending on your home environment, working from home can be overwhelming or extremely distracting. Potential clients might be someone you want to meet with in person. Do you think having them visit your house is okay? You can meet anywhere, even at a coffee shop, but is that the best way to convey the stability of your business?
The answers to these questions are unique to you. You can save a significant amount of money on your monthly startup costs if you think you can meet potential clients from home and maintain focus.
Office or coworking space
An office provides a dedicated area for work and business transactions, but this convenience is not free. In addition to your rent payment each month, you also need to provide internet access and phone service. Most likely, a lease must be signed as well.
After the pandemic is over, a coworking space might not be available. It was once a well-liked choice for some new companies. Most provide networking opportunities with other business owners in addition to standard business services like internet. Usually, you pay on a month-to-month basis as opposed to taking on the debt of a long-term lease.
Genealogy business equipment and expenses
You've chosen your workplace. You now have to choose what you'll need to finish your work. The following items could be essential for a genealogical researcher to have on hand:
- A laptop computer
- Internet access
- A printer and scanner
- Research notebooks
- Filing cabinets or drawers
- Subscriptions to the major genealogy research sites like Ancestry.com
- Transportation to local archives via private car or public transportation
- Marketing collateral: business cards, website, brochures and flyers
Create a basic budget for your business based on your expected income and monthly expenses.
Writing a business plan
You almost have everything you need to write a business plan now that you've decided what to sell, how to sell it, where to reach customers, and how much it will cost to operate your company.
There's a great online business plan builder hosted by the SBA.
Why write a plan of business? In the first place, it's a useful exercise that aids in providing important answers regarding the cornerstones of your company and its future expansion. Additionally, obtaining funding from banks or other investors requires a business plan.
Funding your business
Every new company must pay upfront expenses. When starting a genealogy research business, your startup costs are very minimal. You may have already bought some items on that list when researching genealogy was just a pastime.
The following are some possible sources of funding for a genealogy research company.
Bootstrapping
Bootstrapping is the process of launching and expanding a business with your own funds. One advantage is that you can get started without anyone's consent.
You might not have enough money to continue, though, depending on how much you think you need to spend on marketing. If you want to start as a side project while earning money from other sources, that's acceptable, but if bootstrapping is your only source of funding, you may quickly run out of money.
Because the startup costs are so low, bootstrapping is a good option for a genealogy research business.
Personal loans
Enterprises that necessitate significant upfront expenditures for marketing or equipment might require extra funding to give them a head start. Personal loans are a better option than maxing out your Visa because they typically have lower interest rates than credit cards.
A personal loan could be helpful for someone starting a genealogy research business to pay for expenses while they concentrate on developing their clientele and reputation.
Government funding
SBA-guaranteed loans can be helpful in starting a business. The SBA does not directly provide the loans; rather, private entities such as banks, microlenders, and community development organisations do. If you default on the loan, the SBA agrees to repay the majority of the loan, up to 85%. SBA's online lender referral tool can help you get in touch with participating lenders.
It takes longer to get funding approved for an SBA-approved loan than it does for a personal loan. The time could be better used concentrating on marketing for a company with as low of an initial investment as a genealogy research company.
Venture capital
Venture capital firms make investments in a wide range of businesses with promising future growth. They purchase a portion of the business and stand to gain greatly if it succeeds. Small Business Investment Companies (SBIC), which provide loans or buy equity in businesses, are matched with entrepreneurs by the SBA.
Unless your genealogy research company has a high growth plan (think hundreds of millions of dollars in revenue), a venture capital firm is unlikely to be interested.
Crowdfunding
Entrepreneurs possessing innovative ideas can frequently garner public backing via crowdsourcing platforms such as Kickstarter, Indiegogo, and GoFundMe. Though they frequently receive rewards, such as the company's first product, these "investors" do not own any equity in the companies they support.
Crowdfunding may be an option if your genealogy research business caters to a particular market or if you intend to create a written product. Crowdfunding has been used by numerous authors to help them with research and book writing.
Vendors
Without the assistance of trustworthy suppliers, many businesses are unable to operate. Paper cups are necessary for coffee shops. Architects require printed drawings. Gardeners require mulch and potting soil.
Your company's success depends on every product you'll need, so find a dependable, trustworthy, and affordable supplier to supply it to you. Because vendors are professionals in their fields, you will likely save time and receive the best possible product from them.
For example, as a genealogical researcher, you might choose to provide your clients with printed reports. You might find a good local printer who can do the work for you instead of taking time out of your day to produce these at the local copy shop. They will most likely be able to offer suggestions for enhancements to make your reports appear even better.
Build these connections with potential suppliers before you really need them.
Naming your business
In addition to being distinct from the names of your rivals, your company will need a unique name for tax record keeping.
Your state's business licencing office will provide you with an online search tool to check if your desired name is already taken. Your business name must be available in your state.
It might be a good idea to select a name that can be used as a website domain name. Finding you online is made simpler when your domain name and business name match. This is a good way to see available names with an extremely quick search.
Choose a compelling name
Your company name ought to be more than just a unique combination of a few words. Ideally, it should highlight a distinctive quality that your clients will value and find appealing about your company.
For instance, one well-known brand for plumbing companies is Speedy Plumbing. When a person's toilet overflows, what does one care? They want it to end quickly.
Reconsider the distinct aspect of your company that sets it apart from the competition. Is your company the only one in the area? Perhaps you should go by the name [Name of Town] Genealogy Research.
Will your distinct abilities or disposition be the key to the success of your business? Then [Your Name] Genealogy Research might be a suitable name.
Perhaps your area of expertise is tracking down ancestors from a particular area. You may want to rename your company Irish-American Genealogy.
Do you think you complete tasks more quickly than your rivals? If so, perhaps you should adopt a plumbing playbook and name your company Speedy Genealogy.
Licensing requirements and business organization
To operate, all businesses need to have a licence. Depending on where you live, there are different licencing requirements. In addition to a state business licence, you might also require a city or county licence.
Registration will be simple if you are registering as a sole proprietor, which means that you will report all income on your personal taxes and take full responsibility for the business's operations.
Other forms of organization
The majority of businesses begin as sole proprietorships, but you can think about incorporating as an LLC or C corporation to get your business off the ground. There are advantages and disadvantages to incorporation that you should weigh.
The primary benefit of incorporation is the potential protection of your personal assets from debt in the event that the company fails or you are sued. The disadvantages include the need for additional documentation, such as articles of incorporation, higher costs, and the requirement for a board of directors and shareholders.
For those looking to venture into genealogical research as a side gig, a sole proprietorship may offer the most rapid startup. A more formal structure might be appropriate if your genealogy business is going to be your primary source of income.
Verify your community's sales tax regulations as well. Whether and how much to charge for sales tax depends on the kind of product you sell and the locations of your clients.
Sales tax is generally not necessary for professional services such as genealogical research, but it might be if you offer a particular product. To be certain, check with your state's department of taxes.
Training and special licenses
Certain businesses, like daycare centres and restaurants, have unique licence requirements. Some jobs also require certification, such as commercial truck drivers and hair stylists.
As far as we know, there are no unique specifications for genealogical researchers. The Board for Certification of Genealogists offers a certification, but it's not required to charge clients for family history research.
Registering with the IRS
If you want to sell specific products, hire staff, or incorporate, you must have an employer identification number, or EIN. Additionally, if you're completing advanced business paperwork or applying for business loans, this is a standard expectation. Although they can still obtain one, a lone proprietor might not require one. If you are unsure, get in touch with the IRS directly.
Applying online for an EIN is possible.
Open a business bank account
Having a business bank account can make it easier for you to monitor the expenses and income related to your company. I'll really appreciate this come tax season. For a nominal cost, the majority of banks provide business accounts and business debit cards.
Marketing materials
Make a list of the essential marketing materials your company needs and begin producing them.
Logo
A logo is a distinctive graphic representation of your name or brand that can give your marketing materials more professionalism and consistency.
A logo's price can vary. It's free to create your own logo online. Hiring an online freelancer to make one for you is an additional choice. Many print shops provide services for designing logos. Professional graphic designers are more expensive, but they can produce a logo that is more polished and distinctive.
Having a conversation with an experienced designer is usually a smart first step. Consult with others in your professional or personal network.
Basic messaging
You can use a few standard messages to help you promote the content on social media and in person. Make sure you have a prepared 15-second elevator speech ready for when people inquire about your line of work. Your elevator speech should cover your accomplishments, methods, and unique selling point before concluding with a question.
Start these foundational messages with your mission statement. Assume, for illustration, that your mission statement is, "I assist individuals of Panamanian heritage in learning more about their ancestors."
You could say something like, "I'm a professional genealogical researcher," in your elevator speech. I specialise in assisting individuals of Panamanian heritage in locating the communities from which their ancestors left. I have personal connections at all of Panama's major museums and archives, and I speak Spanish fluently. Do you know anyone who is descended from Panama?
A tagline is a brief statement that sums up the goal of your good, service, or solution.
"Aiding Panamanians in reconnecting with their past" is one example.
You might also think about writing FAQs, or frequently asked questions, especially for your new company. This could be a page on your website, or it could be a resource for you. By providing basic answers to frequently asked questions, the FAQs save you time when a client would otherwise need to call or email you.
A genealogical research company may have the following FAQs:
- How much does it cost?
- How long does the research usually take?
- How will I know what you found is accurate?
- Do you need my DNA?
Recall to update your FAQs whenever a customer asks a new or unusual question.
Website
Customers can access your website whenever they want and, with the help of smartphones, from any location to learn more about your offerings. There are numerous services available that make the process of developing and launching a website quick and easy.
You are operating a knowledge-based business as a genealogist. It might be a good idea to host your website on a content creation platform. The most widely used blogging platform among them is WordPress, which is open-source. To get you started, WordPress.com provides inexpensive web hosting and creation tools.
Social media pages
Social networks are well-liked venues for people to congregate and establish personal connections with businesses and one another.
has the largest viewership. Most people will assume that you are active on Facebook. If you want to run Facebook ads, you'll also need a Facebook page.
is a social network that allows users to share photos and is ideal for companies that sell aesthetically pleasing goods (clothes, artwork) or upscale experiences.
Snapchat
is a well-liked social network among teens and young adults that focuses on video sharing.
is a social network for sharing news and opinions that's perfect for highlighting distinctive voices and personalities.
is a social network for professional development where discussions about jobs and business are common.
Facebook is arguably the most crucial social network to concentrate on if you own a genealogy business. If your voice is distinct, humorous, and controversial, you might want to give Twitter a try.
Business cards and other print collateral materials
The one essential piece of printed material you will require is a business card. Your name, your business name and logo, your contact details, and the address of your website should all be included.
You might also want to create (or have created) a simple invoice that you can use to bill your clients.
To get started, some businesses require extra print materials. A contractor needs a quote sheet, just as a restaurant needs a menu. Take into account your needs, as more printed materials such as brochures might not be required at launch.
A business card and an invoice template are a good place to start when starting a new genealogy business. If you want to submit your research as a report, think about employing a designer to make a visually appealing report layout template.
Employees, contractors and timesaving services
Wearing numerous hats is part of running a business. Being a salesperson, office manager, financial planner, bookkeeper, social media manager, and administrative assistant all during the course of a day can be enjoyable for some people. Others perform better when they concentrate on their strengths or when they are able to select only the most fascinating extra tasks.
Consider the duties you will be required to complete, such as writing social media posts, keeping books, and making appointment schedules, and whether you would prefer that someone else handle them.
You can assign these typical tasks of being a business owner to contractors you pay, employees you hire, or, more and more, subscription software services.
You probably won't be devoting a lot of time to administrative duties when you first start your genealogy research company. If your business grows, you may want to outsource these tasks once you can manage them yourself to keep monthly expenses low.
Tips for a successful genealogy business
You're not the only one considering quitting your current job to pursue a career in genealogy research. Almost all individuals who pursue a career in genealogy originally worked in another field.
If you find others who are just starting out in the genealogy field, your business may grow stronger. Genealogist Pam Anderson stated, "You work by yourself so much, it's important to develop a network."
According to Anderson, she has made a lot of worthwhile contacts at conferences and research facilities. These connections can become valuable assets in the event that you receive an excessive volume of requests or require assistance with particular problems. "Having people to bounce ideas off of is good," Anderson remarked.
Above all, always be ready to learn new things. Although genealogy is the study of the past, the resources available to genealogists are ever-expanding. Even though DNA research is still relatively new, some genealogists focus only on it. If you don't currently have a niche, you might throughout your career. You won't be bored, at least.
Post a Comment