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[size=15pt]What's OLX please?[/size]

On Line Xchange

From little experience online, maybe i can answer some few questions and contradictions


Corrections

The last time i checked, Nairaland does not make money from adsense or any ppc/ppm affiliate site. Nairaland has its own private ad placement which he charges even higher than what adsense pays. There is also a possibility that nairaland could be generating some revenue through traffic partnership " seller its users email to nigerian companies for a huge sum"... Also i will like to state that nairaland is a forum networking site thus will never be accepted by adsense as a result of its content not been original. Post post on nairaland are news article that was reshared here for discussion.

Olx is a classified site that enables people to buy or sell stuffs online for free. At the moment, olx might be generating some minimal ads revenue from its affiliate like google but i believe its future aim is to generate enough amount of traffic that will enable her apply the same revenue strategy that nairaland might be using.

Okay lets think analytically, a new online company wanting to enter the nigerian market knows that it will be very difficult to get traffic from the start stage, it could decide to approach nairaland and something like this will be discuss

New company: oga seun, u don dey this market tey tey, how u fit help me naa..
Oga seun: u fit place your ads for my site naa, e no too cost.
New company: okay i go do am, but no b everybody dey see ads or click ads naa.abi u no no say naija people wise.i want sharp sharp converting traffic.
Oga seun: okay naa, i get 3 million unique naija email address for my database. I fit sell am for you for 10 million naira.
New company: that one better naa, but e fit cost. Make i pay 9milla
Oga seun: okay naa. I go just do am for u but i no go fit releave the emails to u oo. Just give me ur message and i go send am.

By so doing, seun receives tha money, sends the email and still has his email list intact.



Like most other classified site, olx has always been free but might in future introduce some advance listing that shows your ads on front page but you will have to pay the premium. They call it premium listing.

Have you wondered by facebook is free and still making huge revenue. Bcus when he asked you whats on ur mind, and u mumulishly share it on your fb page. Advertisers that have a solution to whats on ur mind immediate show their ads on one corner of ur fb wall. This process is called targeted advertising.

Discuss about money and fb will show you bank and finance ads, discuss about party, cloths,wedding and the rest of them and fb will show you product ads. Advertisers bid for this keywords just as they do with google adword.

So to sum it up

Facebook offers you its service for free and in return, they sell out the things in your mind " whats on your mind syndrom" It puts ur information on the auction house and allow advertisers to bid for it... Read their privacy statement for further info.

Facebook is able to target a particular audiance by country, region, age group, job category (wealth),relationship status and many more. Thats why most advertizers prefer facebook to any other marketing strategy.

Gone are the days when companies advertise on news papers and billboards. This days companies believe in the philosophy thats says " it is where my customers are, there will i go" .. Every body is on facebook and nairaland, thats why most infant startups are placing their advert there.

Online sites makes more money through private ad placement than using adsense. Take a look at nairalands cost of placing ad and compare it to the cents that adsense pays you per click.

Most online sites sell out their users email address list for huge sum. I can not confirm that olx or nairaland does it but it is a norm for most big traffic websites.

So for all naija newbizz interested in setting up a site, going online and staying online and making money online, A good way to do that is try to get traffic to your site. Offer your site for free and in return sell out infos and adspace. But thats after you get the traffic.

An easy way to get quick traffic is through the use of nairaland and facebook ad placement. Its up to you to decide who your audiance are and how you want to target your audience. Try to be specific i.e, if u dey sell akara, no expect customers to buy your akara if your shop dey for vgc.

Kingslaw: Abeg o,i get 1.5k.any body here fit desighn a mini forum for me.pls am a brother in need 4 now pls.

Sorry, i didnt understand what you mearnt by 1.5k.. But could be of help if you need a forum site. Up within 24 hours . Pm me

mrnestyy1985: Nairaland has its own private ad placement which he charges even higher than what adsense pays.

Not true. We charge lower. Much lower.

mrnestyy1985:

THANK YOU FOR TAKING THE TIME TO EXPLAIN IN SIMPLE TERMS LIKE THIS.

Seun: Not true. We charge lower. Much lower.

Bro,

You didnt understand me. Google use a revenure share technique. It means what ever adertisers pay for their ads is shared between you and google.

But since you allow private ads without using googles ads network, you get 100% of what ever advertisers pay.

Nairaland allows you to target unique Nigerians. If my business target market is the nigeria market, i will surely wanna place my ad on nairaland rather than google. After all, its the conversion rate that matters and nairaland will convert more.

mrnestyy1985: You didnt understand me. Google use a revenure share technique. It means what ever adertisers pay for their ads is shared between you and google.

But since you allow private ads without using googles ads network, you get 100% of what ever advertisers pay.

100% of what we charge today is lower than than the 68% that we would be getting from Google for the same level of traffic.

They make their money only two best ways which are:

1) Online Advertising like Google Adsense
2) CPM (Cost Per Click) : When visits visit their sites.

Others include paid ads which is rare.

shakaz:
Met A guy in the bus today that was defruaded via OLX...
Instead of building on quantity of users why not work on quality.
The likes of Amazon and Ebay has customer protection policies.
Ebay in particular started with a single broken pen he placed on auction. oLX and Google trader on the contrary has become sites where fraudsters practice there inhumane cheap skills.
So my take is I won't attempt any deal on OLX that is not cash and carry.. My 2cent

There are seriously working on that. You and I understand our type of country plz don't treat OLX with disdain, I believe some positive measure will be taken as against bad heads.

I which to develop such site. Na money dey hold me. When I have enough # I will invite the developer. They're doing good work.