Guk:

Yes, 1M naira daily. Jumia; Konga & Dealdey are on Facebook 24 hours a day. They are also on Google Adsense. Dealz9ja used both media extensively last year and the advert budget was frightening! Theres also SMS cost; daily email cost etc. Na look before you leap biz O!

lacicrips: Ooops! Double post. Sorry.

I might as well just say something.

Mocality I believe is being sponsored by a powerful group (Nasper). And these old men don't have the patience to see it mature.

Sad though if the news is true, I thought they had an amazing product. Don't mind buying up their technology (that's if I can afford it).

It takes passion and sweat equity to grow these kind of businesses.

lacicrips:

That's like N30m/month, give or take. Naah! Who does that?

I work with a digital marketing agency, and there's no way in the world they're getting that kind of crazy bill from either fb or google, unless of course they're being cheated by the agency they're working with. We work closely with sales/account executives from Google, Facebook and Yahoo. And it's only Yahoo I know charges are on the highside. You need a minimum spend of $3k/month to talk to them, and your ad campaign gets run on all their properties. It used to be $10k, but got reviewed sometime last year. Although, the higher your spend, the more visibility. Same goes for Microsoft's hotmail.

If you got that figure directly from them, it's either it's being inflated or they're obviously being cheated by their agency.

N1m per day? That's some crazy sh.it.

Guk:

Its a good thing that this closing down came up as here a number of lessons to be learnt from it. Pls follow closely.

I am a Business Consultant to Dealz9ja www.dealzng.com/deals/all/ the only remaining competitor to Dealdey. The others in competition were (a) Deals.mocality (2) Rightdealz.com (3)Qlu Qlu (4)All4Naija. They are of now blessed memory.

Pls note that Deal of the Day website are cloned after Groupon and are totally diff from your regular Product websites like Webmallng; Konga; Jumia; Kamdora & such like.

Deal of the Day website DO NOT make a lot of money and could collapse anyday if you dont get your model right. Dealz9ja has bn sustainable becos, a niche has bn carved; subscriber base is sufficient to run at a profit; overheads were contained right from start up; areas that needed to be outsourced were done wt hard negotiations. The truth be told, cost of Adverts is the bleeding point. A typical month on Facebook is =N=500k How do you sustain such from even sharing 50% commission from your merchants? Meanwhile, Deals.Mocality had adverts on DSTV during 2012 Champions league and Olympics. You do not want to know how much such cost. I had predicted their downfall from them as it was not sustainable.

Dealdey has competitive advantage becos they are owned or supported by eMotion, an outdoor advert comapany that is awash with cash. eMotion is funded by ARM & ARM funds the Lekki Epe Expressway & thats why eMotion has the right to advertise exclusively on that prime location from Bonny cam all the way to Ajah and beyond.

Dealdey's commisions are high, and that has pushed some of their Merchants to Dealz9ja. This business is all about Strategy; Knowing the Market; playing the Market & sustaing your business model and grow organically as Dealz9ja can never match Dealdey in advert spending & is not even attempting to. hey have their own clientele & business is good & profitable.

As for Jumia & Konga, the jury is out on them. The Advertisement spend is HUMONGOUS, i hope it doesnt bring them down after a couple of years. Its just not sustainable. You are talking of advert spend of roughly a =N=1M daily!

In 2012 alone, over 5 dozen ecommerce bizs can online, over 90% are gone. Its a marathon biz not a sprint.

More later.....

Guk:

Email me

TokyoBulls: I can't be surprised at the claim of N1M/day advert spend. For the kind of visibility Jumia.com gets online, you need a fortune. An in-house unconfirmed source claims that they have a 'must spend' budget of $7M this year. That's some good dough to spread around and outbid all adverts on Google or Yahoo

naijacutee:

If this is true, then the end is in sight, unless they have projections take over $7m this year from that website, solely from selling their stock.

What's even a 'must spend' budget?

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