Google HotPot Just Made Google Places – And Your Business – King [video]

(Can’t see the video*? View the Google HotPot video here. *Sound problem fixed.)

If you own a business with a physical location, stop what you’re doing right now and give this issue your full attention. If you own a business that does not have a physical location, stop what you’re doing right now and give this issue your full attention, because after you read this, you’ll see many cost effective reasons for having one.

Yes, it’s that important.

It doesn’t matter what size your business is – this is worth five minutes of your time. Why does this need your attention right this second?

Because what Google did today will either change your business forever, or the next company to get this right will. Either way, if you want your business and its revenue to continue to grow, it’s absolutely essential that you stop, right now, and pay attention to Google HotPot and Google Places.

I sent out a tweet when Google HotPot debuted this morning. For a Google announcement, it got a lukewarm reception, possibly as a result of being in the wake of a major Facebook announcement. Google HotPot is still so new, if you type it into Google search, it still says “Did you mean Google Hot Pot?

There are only 300,000 web results as of this writing at the end of the business day on the same day of the announcement, and only 183 news stories.

Google’s main blog is focused on Google Voice for iPhone, and Google Goggles. For goodness sake’s, it’s not even trending on Twitter, though Matt Cutts mentioned Google HotPot there today.

Why does that matter?

Because most people are not seeing what you and I are about to have a full understanding of in the next few minutes. That gives you a huge jump on the rest of the world. Google HotPot has a dreary name, sure. (honestly? HotPot? You couldn’t add an S in there and make it sound like what it is – a way to find the hot spots around you?)

But it’s done something incredibly game-changing, so game-changing that even if Google fails miserably at this, the company that gets this right could topple Google in the local search arena.

Enough foreplay. Let’s talk about what Google HotPot is, why it’s a game changer, and how it can benefit you and your business seconds after your Google Places account is in order.

Google HotPot, as I mentioned, is Google’s consumer-facing socially-based local recommendation engine. From the Google HotPot announement in Google’s LatLong blog:

…. today we’re excited to share the first step: an early release of Hotpot – a local recommendation engine powered by you and your friends. With Hotpot, we’re making local search results for places on Google more personal, relevant and trustworthy.

Doesn’t seem like a big deal right?

Until you go and see the user interface. The major points of concern to us:

1. It is addictive.

The more you use it, the more you are rewarded with new places to discover.

It exploits basic human needs we have that companies that make video games and marketers are all too aware of – we love getting new information, we love being the source of new information and we love to be rewarded for our accomplishments, even small ones, especially when the rewards are immediate.

2. It is social.

You can leverage the knowledge of your social circle to get more information.

3. It makes discovering the world around you – BUSINESSES around you – easy and fun.
4. It makes providing information about the establishments you use very easy.

Now, with Facebook Places and Foursquare, this isn’t exactly new territory. FourSquare made public discovery of local spots easy and fun ages ago, though they don’t have the existing 500 million user base that Facebook has.

But here’s the difference.

Facebook and Foursquare are not verbs that mean search. Google is.

You have to sign up for Facebook and for Foursquare. If you want to Google something, whether on your phone or your computer, you just go to Google – it’s often the default search.

Consumers want to easily and quickly be able to find resources using our mobile phones and computers, with reviews to help us decide who to patronize. Businesses want consumers to easily and quickly be able to found, and good reviews increase business.

Google HotPot put those two items together. In one place. That everyone already uses.

I bet you can name only a handful of people who know what FourSquare is, and ten people you know who still aren’t on Facebook.

Name one person who has never used Google.

Now, this is an early release, though interestingly enough, not a Google Labs project.

Google may promote the hell out of it, even integrate the Google HotPot tools into the main search functions.

But even if, for some reason, Google is crazy enough not to put this in the spotlight – or isn’t forced to by an enthusiastic user base – another company will take this concept, tie it to an audience that rivals Google, and own the locaction market space.

And whoever ends up owning local/location will own it all. Because the web is fun and all but most of our lives take place offline. Even social lives and business lives that take place partially online have an offline component.

I believe that Google HotPot has the potential to solve the biggest problem that both you and I as consumers and business owners face – we want thorough, social, and relevant local search and discovery tools. Google Maps, Google Local, heck, even Yahoo and Bing local work fine, but this takes it to the next level.

One reason is that until now, only if you had a bad or a really great experience with an establishment was there a reason to create a tip or add a review. And there are still plenty of local businesses that don’t see the need to enter their information into Google Places.

Now, there’s a reason unto itself.

Not only is there a rewards system within the Google HotPot application – which will drive usage up – there’s more of a reason for businesses to give rewards and discounts to people who come to their Google Places page, just as there is for people who check-in on Foursquare or visit a Facebook Page.

Only there’s no opt-in. If you’re not entering a tip or making a suggestion, no sign-in is necessary. You get/give the discount details on the fly and keep rolling.

So what should you do now?

1. Find out as much as you can about Google Places.
2. Enter your business into Google Places- if you already have an account, make sure Everything is filled out and that you have pictures up.
3. Get recommended.
4. Start using Google HotPot.

Join me as I complete last week’s Grow Smart Business series with 100 resources local businesses need to increase web leads, and with more Google Places information throughout the week.