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How Does OLX Make Profits? - Business - Nairaland

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How Does OLX Make Profits? by mhozzis(m): 8:08pm On Nov 07, 2013
OLX has adverts that feature celebrities on radio, television and other media.

So my question is: how do they cover cost for the adverts since using their service is free of charge?


I THANK WHOEVER MOVED THIS TO FRONT PAGE.ITS A SIGN THAT I'M FAVOURED IN THIS YEAR AND ALL THE PLACES I SUBMITTED MY CV WILL SOON CALL ME FOR EMPLOYMENT

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Re: How Does OLX Make Profits? by proselector: 8:27pm On Nov 07, 2013
mhozzis: OLX has adverts that feature celebrities on radio, television and other media.

so my question is : how do they cover cost for the adverts since using their service is free of charge.

me self dey wonder

www.nairaland.com/1507688/nairaland-e-cooperative-society

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Re: How Does OLX Make Profits? by critic(m): 8:30pm On Nov 07, 2013
I follow Una wonder too o...

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Re: How Does OLX Make Profits? by ULSHERLAN(m): 8:44pm On Nov 07, 2013
All of una come dey wonder land......una go come back safely o

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Re: How Does OLX Make Profits? by mhozzis(m): 8:51pm On Nov 07, 2013
Make person wey sabi help us den
Re: How Does OLX Make Profits? by Iyemik: 9:16pm On Nov 07, 2013
..

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Re: How Does OLX Make Profits? by naijacutee(f): 9:19pm On Nov 07, 2013
I don't think they are making a profit yet. I think they are after market domination - and my reasons for thinking this is that they are in the same business in at least 3 African countries. I might be wrong, but I think this is their plan

- Advertise the service heavily and get everyone to know about it & use it.
- Beat competitors, dominate the market by making people familiar and comfortable with their service
- Improving the service and offer customers what they want for free (big database of items in Nigeria for sale)
- Introduce paid adverts after all this is completed - to recoup investment.

I think they can afford to take the first 4 steps above without any revenue because they have outside investment. Thus they are spending now, to by a share of the market now in the hopes that they make money from the large market share in the future.

25 Likes

Re: How Does OLX Make Profits? by mayorall(m): 10:37pm On Nov 07, 2013
naijacutee: I don't think they are making a profit yet. I think they are after market domination - and my reasons for thinking this is that they are in the same business in at least 3 African countries. I might be wrong, but I think this is their plan

- Advertise the service heavily and get everyone to know about it & use it.
- Beat competitors, dominate the market by making people familiar and comfortable with their service
- Improving the service and offer customers what they want for free (big database of items in Nigeria for sale)
- Introduce paid adverts after all this is completed - to recoup investment.

I think they can afford to take the first 4 steps above without any revenue because they have outside investment. Thus they are spending now, to by a share of the market now in the hopes that they make money from the large market share in the future.


Nice one. But madam why is there no complaint thread on this section.
Re: How Does OLX Make Profits? by dominique(f): 11:06pm On Nov 07, 2013
@naijacutee
Don't they get commissions off goods sold on their site? I thought that was their major source of income. undecided

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Re: How Does OLX Make Profits? by Jamji: 6:50am On Nov 08, 2013
mayorall:


Nice one. But madam why is there no complaint thread on this section.

It is very much needed. There are so may complaints i want to share, some especially against naijacutee herself.
Re: How Does OLX Make Profits? by mhozzis(m): 7:14am On Nov 08, 2013
Thanks for this
naijacutee:
Re: How Does OLX Make Profits? by Incrizz(f): 2:14pm On Nov 08, 2013
dominique:
Don't they get commissions off goods sold on their site?
Not at all. No commission whatever. It's just you and your buyer when you meet.

Modified
That was in 2013. This is 2016; they collect now.

2 Likes

Re: How Does OLX Make Profits? by talk2D: 8:09am On Nov 09, 2013
I posted something like this on another thread
Advertising makes good money if the site is getting lot of traffic.
Most of the site online turns into a business when it starts getting traffic.
OLX: Advertising
Vconnect: Advertising + premium B2B offers via email marketing.
Naij: Advertising
Nairaland: Advertising
.
You can start a site like this if you have resources to make people know it exist.
Often, the success of an internet business depends on how you make people find it.
Then, it can later spread through word of mouth.

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Re: How Does OLX Make Profits? by mhozzis(m): 9:40am On Nov 09, 2013
talk2D: I posted something like this on another thread
Advertising makes good money if the site is getting lot of traffic.
Most of the site online turns into a business when it starts getting traffic.
OLX: Advertising
Vconnect: Advertising + premium B2B offers via email marketing.
Naij: Advertising
Nairaland: Advertising
You can start a site like this if you have resources to make people know it exist.
.Thanks for the detail contribution, but in the case of Nairaland, adverts are paid for unlike OLX.

When people talk about traffic, i understand it's the rate at which our site is visited and sites that makes profit from traffic are either running some kind of pay-per-click ad. Or run google ad but this isn't the case with OLX.

MAYB I DON'T UNDERSTAND YOU SHA

2 Likes

Re: How Does OLX Make Profits? by Cargoed: 12:12pm On Nov 09, 2013
mhozzis:
.Thanks for the detail contribution, but in the case of Nairaland, adverts are paid for unlike OLX.

When people talk about traffic, i understand it's the rate at which our site is visited and sites that makes profit from traffic are either running some kind of pay-per-click ad. Or run google ad but this isn't the case with OLX.

MAYB I DON'T UNDERSTAND YOU SHA

if you have a look at their site i think you will notice, they support contextual adverts. Very discrete but yet productive.

1 Like

Re: How Does OLX Make Profits? by Adex097: 1:37pm On Nov 09, 2013
mhozzis: OLX has adverts that feature celebrities on radio, television and other media.

so my question is : how do they cover cost for the adverts since using their service is free of charge.
I swear, I was thinking about this yesterday when I saw the advert by seyi_law...and I was like "when will Nairaland start its own adert"
Re: How Does OLX Make Profits? by nakwe(m): 1:39pm On Nov 09, 2013
Me self dey wonder o
Re: How Does OLX Make Profits? by Nobody: 1:39pm On Nov 09, 2013
Waooo 1st 2comment

1 Like

Re: How Does OLX Make Profits? by 4reigningqueen: 1:40pm On Nov 09, 2013
***singing***

ko ye won,
yio o ye won lo laaaaaaaa.

1 Like

Re: How Does OLX Make Profits? by Neduzze5(m): 1:42pm On Nov 09, 2013
hmm... I wonder too
Re: How Does OLX Make Profits? by venorite: 1:42pm On Nov 09, 2013
Make I follow una wonder too
Re: How Does OLX Make Profits? by chiboy1928(m): 1:42pm On Nov 09, 2013
I design the site for OLX will gist u guys hw we make our money so keep ur finger cross be right back.

1 Like

Re: How Does OLX Make Profits? by Big4wig(m): 1:43pm On Nov 09, 2013
Abeg who know where i fit get unused old layer fowl? .

1 Like

Re: How Does OLX Make Profits? by eddiebruk(m): 1:44pm On Nov 09, 2013
They get their Commission through Adverts and Site Traffic, if you are asking how OLX make their Profit, then you should be asking SEUN how he makes his, some sites are connected to others like Facebook just to drive Traffic, and same thing goes on with OLX. Traffic and Advert Placement gives them their Profits, they are in so many Countries and as such has a high number of Visits daily

3 Likes

Re: How Does OLX Make Profits? by donpapaecko(m): 1:44pm On Nov 09, 2013
I just asked akpors now and he sayed him no no

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Re: How Does OLX Make Profits? by codernoni: 1:45pm On Nov 09, 2013
Wait its like its only me that doesn't know the meaning of OLX
Re: How Does OLX Make Profits? by IAMBREEZY: 1:45pm On Nov 09, 2013
i also wonder i don't know how they make their profit.
Re: How Does OLX Make Profits? by obeenah40(m): 1:46pm On Nov 09, 2013
So all this sites Makes profit? I thought pple just run them for fun shocked
Re: How Does OLX Make Profits? by Rexyl(m): 1:47pm On Nov 09, 2013
Through ads placed on their site i think
Re: How Does OLX Make Profits? by Nobody: 1:52pm On Nov 09, 2013
Good question.. I really don't think they re making any profit yet, even if they re, it won't cover the cost of d adverts they re currently running.. I think they ve a long term plan.
Re: How Does OLX Make Profits? by Joe50(m): 1:52pm On Nov 09, 2013
Adex097:
I swear, I was thinking about this yesterday when I saw the advert by seyi_law...and I was like [size=32pt]"when will Nairaland start its own adert"[/size]

and who told u Seun is ready to do dat?
dat guy wey dey smile like woman so lipsrsealed lipsrsealed


for the OLX, dey are making their cool money through traffic and signing up using third-party program dat depends on high traffic. not necessary banners must be placed on their site for to click before they get money. high traffic does dat for them.

also with nairaland depends mostly on this.

1 Like

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