Classifieds

Classifieds
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Wednesday, October 24, 2012

What is a Classifieds website?

Classifieds website may be defined as a business marketplace where consumers or users sell their products or services to other consumers or users who are looking for the same.Some good examples of classifieds website are Craiglist, Olx, Backpage etc.

Why classifieds website models have been so successful?

There can be a lot of reasons why a classified business model has become successful. Here are some of my perspectives.

1. Users can easily display a product to a whole bunch of people who are looking for the same.
2. Users searching for the product has many options available to look into. You would be able to find a lot of similar products/brands with different price range which in turn helps you make a choice for buying.
3. On the search engine perspective, the website attracts a lot of traffic and users, with new content being added as the website keeps growing- attracting more customers and content.

Though it is well known that a classifieds website can be a successful business, not everyone who starts the business has become successful. If you have the time, money and power to penetrate the market and instill your classifieds website brand into people, then you probably would start becoming successful. 

How does Classifieds website generate revenue?

There can be various revenue models for classifieds website. Some of them are as follows.

1. Ads: Advertisements have been the single major source of revenue for classifieds website as the number of users and visitors visiting the website is huge. Additionally classifieds website that are highly successful are also tapping in revenue by selling premium ads on their website for each category.
2. Selling Leads: Leads generated in classifieds website are sold to third party companies for marketing directly to users. For example: if a user has registered in the website and is searching for a car or real estate to buy, this could be a good lead for companies selling cars or real estate.
3. Online Research: Help companies get customer views of their product. Affiliate marketing is also another source of making revenue.

Can Paid advertising on Classifieds website make a positive revenue to your company?

This really depends on the kind of business you are doing. As long as I have seen and understood businesses offering high value goods with good profit margin have been successful. For example: A construction company who has recently completed construction of an apartment can easily sell the apartment if he/she lists it on the top classifieds website in that locality. You would easily find a lot of customer leads by doing so but the conversion of leads into sales really depends on the end product quality, cost etc.

Post your comments and view on the same. Thanks.



5 comments:

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