Business and Revenue Models for Classified Ads
There is no business owner who wont want to broaden their customer base. In fact, the aim of anyone who wants his or her business to grow or succeed is to widen their audience. In my last post, Business Model: Niche-Based Online Classified Ads, I introduced you into what classified ads is all about. In this post, I am going to share with you some revenue models of classified ads.
Classified Ads is a marketplace or a common platform where businesses list their products or services in other to enhance their reach. With the increasing number of Internet users in Cameroon and Africa at large, many people have turned to be searching for products and services online. This shows that the classified ads business should be a great opening for someone who may want to engage in an online business.
In my previous post, I made mention of the fact that classified advertisement didn’t come with the Internet. It has been an age-old practice especially with newspapers. In Cameroon, we have many online classified advertisement businesses. Do not confuse a ‘Classified Ads’ business with an ‘Online retail’ business.
The objective of this post is to bring out some business and revenue models of Classified Ads. What will you want in starting a business like this if not of making some extra or permanent income for yourself? Note should be taken that it is a business activity that you can also do for part-time. It wont take a lot of your time if you have put everything in place.
We have been providing coaching and business consulting services to would-be entrepreneurs and start-ups that approach us. During one of such sessions, we discussed with one entrepreneur who together with his partners have started a Classified Ads business for freelance technicians. At the end of this post, I will share with you the website. We identified with him some successful business and revenue models of classified ads business which I will share with you below:
1. Subscription or membership based model
This model charges advertisers to become members before they can publish their ads. It can be a one-off fee as well as a monthly or yearly fee.
2. Sponsored listings
Sponsored listings or bounce ads is a model whereby advertisers can enhance their visibility by paying a certain amount. It gives the advertiser the possibility to place their ad back at the top for a fee especially in the case where more adverts are getting listed.
3. Premium options
Businesses are allowed to post their listings for free with the option of having premium features. The premium features can come in as “Featured Ad” or even the possibility to add more photos of your business for a small fee.
4. Paid banner ads
You can allow the users to post their classified ads for free and offer a banner space for them to display their products or service. These banner ads would be placed on the relevant pages as well as categories.
5. Pay per view
With this model, the listing will be paid only if customers gets a view of the ad.
6. Pay per ad
In this model, you charge advertisers a fee for publishing one or more classifieds.
7. Pay per lead
You earn only when the ad gets converted into a sale. In this model, the potential customer is the source of revenue. It is a more specific and targeted model.
8. Google Adsense or other advertising opportunities
You can place Google Adsense on your pages as well as product pages. Note should be taken that for every new product or service that is added, a new page is created. This means your Adsense revenue will improve as more and more businesses get listed.
These are just some of the revenue models of classified ads. You must not put your mind only in using the stereotype models above. You can always innovate and experiment other methods so that you can be unique. You can even blend many revenue models to come up with your own. The most important thing to take note of is for you to know what the advertisers and users need.
To be unique, you can also choose a specific niche for your classified ads business rather than covering every field. This is what Blaise Talla and his partners have done. They decided to target freelance technicians like plumbers, electricians, computer maintenance technicians, and many others.
Freelance technicians should take After 1 year, you will have to renew by paying for both domain this opportunity to widen their audience by placing their adverts on Technicien Freelance.
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