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Problem With My Startup - Business - Nairaland

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Problem With My Startup by felixchip(m): 3:46pm On Jun 25, 2015
Good day fellow Landers. I hope your day is moving smoothly.
I have a problem that I need your input on.

Recently, I and a friend of mine want to run a Startup.
Now, we're almost launching but, there's this problem we unto. Monetizing it.

I suggested we allow the users book for the services on the website. Then, we ask
the listed businesses to pay a commission on every customer sent.
And, also allow businesses to pay for the featured spots on the homepage.

My partner was suggesting that we allow businesses to register(maybe the first 100) for free.
Then, after a period of time, we add a subscription box on our business registration page.
This makes it mandatory for businesses subscribe to a package before getting their services listed and open to visitors.
And, also with the featured spots.

We're stuck here. And, your input will mean a lot.
Thank you.

1 Like

Re: Problem With My Startup by pneumaticos(m): 4:52pm On Jun 25, 2015
You r take on it will work well than that of your friend,since you will be providing a service and not really buying any physical stuff that will cost you money,its better you go the commission way,

But if the service cannot be fully provided by the platform built by you guys
Then your friends suggestion will work better

If i were the one i would test the waters with your friend idea to see if we could pull in some cash,though this is highly dependent on the demography of your customers,
If you cistomer are the common people on the
Re: Problem With My Startup by pneumaticos(m): 5:02pm On Jun 25, 2015
You may not be able to go for your friends idea

In all ,do both if possible and implement yours if not possible
Re: Problem With My Startup by grownaira: 5:26pm On Jun 25, 2015
The following steps might lead u to success:

1. Invest in publicising your start up very well

2. Allow businesses/clients to register for free (for probably six to twelve months) without charging them a kobo even on commission.

3. With good traffic on ur site, u can start generating little revenue via adsence, selling ad spaces etc.

4. After the 6to12 months, you can then charge ur clients commission on sales plus annual or monthly rent fees for using the site.
Re: Problem With My Startup by felixchip(m): 5:29pm On Jun 25, 2015
pneumaticos:
You r take on it will work well than that of your friend,since you will be providing a service and not really buying any physical stuff that will cost you money,its better you go the commission way,

But if the service cannot be fully provided by the platform built by you guys
Then your friends suggestion will work better

If i were the one i would test the waters with your friend idea to see if we could pull in some cash,though this is highly dependent on the demography of your customers,
If you cistomer are the common people on the

Well, the main target is women. And he was saying that getting them to make payments online may be difficult. That, I understand. But, we were to include an option that allow users pay after receiving the services.

His problem was that some businesses may fail to admit that we sent them customers after they must have collect their payment.

Then, I suggested that we keep in touch with the users after booking for a service and provide an option on the "account profile" where the user can mark a booking/service complete and rate the business after receiving the booked service(s) from the business. This will help us to know when they've paid the business.

But, he was saying that users won't have time to rate and mark bookings "Complete".

That's the problem.
Re: Problem With My Startup by felixchip(m): 5:40pm On Jun 25, 2015
grownaira:
The following steps might lead u to success:

1. Invest in publicising your start up very well

2. Allow businesses/clients to register for free (for probably six to twelve months) without charging them a kobo even on commission.

3. With good traffic on ur site, u can start generating little revenue via adsence, selling ad spaces etc.

4. After the 6to12 months, you can then charge ur clients commission on sales plus annual or monthly rent fees for using the site.

With my idea: Businesses will register free of cost. But, will have to pay a commission on every customer we send to them.

We're working on building strong relationship with people/businesses that will help us get to our target market.

Do you actually think that asking for a subscription fee and commission on each customer from businesses will work out?
Won't it be too much?
'Cause we want to give them reasons to do business with us.
Re: Problem With My Startup by pneumaticos(m): 6:11pm On Jun 25, 2015
The main problem is tracking customers payment,and all..it will be far easier to go from commission to paid than paid to commission in nigeria,

Taking example from the forign guys,your friends suggestion might only work for a short while with a lot of marketing effort,udemy and a lot of othe companies started with commision ...aside this,look at the business model of jumia,javago,bookings.ng,hotels.ng they are all based on commission taken from the amount paid,

I dont really know this business but going the commision way to paid will surely pay,but definately on the long run,...the online businesspher in nigeria may not give u the luxury of the big cash for adverts to get the business to be listed the notion that you are so big and cant run away with their ""5000"" subscribtion on your platform
Re: Problem With My Startup by pneumaticos(m): 6:14pm On Jun 25, 2015
Another thought is ,if each prospective customer to the business listed will contact your startup by phone (a kind of support line) first before getting to the listed business,

Or take a survey in 3 states around southwest to confirm your stand
Re: Problem With My Startup by felixchip(m): 6:25pm On Jun 25, 2015
pneumaticos:
Another thought is ,if each prospective customer to the business listed will contact your startup by phone (a kind of support line) first before getting to the listed business,

Or take a survey in 3 states around southwest to confirm your stand

Bet me, your comments are awesome.
We are not actually looking at basing our revenue on adverts. It's just a part of it.

Thank you very much.
Re: Problem With My Startup by felixchip(m): 6:38pm On Jun 25, 2015
pneumaticos:

I dont really know this business but going the commision way to paid will surely pay,but definately on the long run,...the online businesspher in nigeria may not give u the luxury of the big cash for adverts to get the business to be listed the notion that you are so big and cant run away with their ""5000"" subscribtion on your platform



Can you explain a bit further.
Re: Problem With My Startup by pneumaticos(m): 8:28pm On Jun 25, 2015
en,I suggested that wekeep in touch with the usersafterbooking foraserviceand providean option on the"account profile"wheretheusercan mark abooking/servicecompleteand ratethe businessafterreceiving thebooked service(s)from thebusiness. Thiswillhelp usto know when they've paid thebusiness.

Ratings,reviews and may be an inbound sms from user to ur company will help you to track your leads better,

Secondly,building a relationship of trust with each listed business is very important

Tell your friend that its easier for businesses to use your platform knowing they only pay for exact service render than for them to take a plung,more so,you need their datas to make your business.

So build trust

Track with records from but side,

Track with inbound calls

Track with reviews

Track with sms......just saying,you should find the best that works for ur business model
Re: Problem With My Startup by pneumaticos(m): 8:37pm On Jun 25, 2015
I am not so sure,but i think dealday makes 80% of their business by referers

Dealday me be in ur niche already
Re: Problem With My Startup by felixchip(m): 1:18pm On Jun 26, 2015
pneumaticos:
I am not so sure,but i think dealday makes 80% of their business by referers

Dealday me be in ur niche already

Well, we have not looked at Dealdey. But, from all indications, it seems working on commission is better.
Re: Problem With My Startup by Nobody: 4:44pm On Jun 28, 2015
It all depends on the nature of the deal, if you talk about commission, probably you might not be around to know the worth of your input and the actual commission, I think it's better to make it a kind of subscription, were payment is made on weekly, monthly or yearly basis... just like NARIALAND

Then for the idea of making it free for sometime, YES ! it worth it cause nobody will want to invest in something he or she is not sure of the returns...when the see the impact, it will get more people to subscribe to you

1 Like

Re: Problem With My Startup by 1k001(m): 12:29am On Sep 01, 2015
@ felixchip not sure whether you're still debating what to do. The answer in my opinion is to split test it. Do one for some time and then another for same amount time. Run both concurrently if possible.

Get a lot of feedback at during this period.

Come back after some time and decide based on the objective data you collect.

Nobody knows what will work better, only testing it will tell.
Re: Problem With My Startup by felixchip(m): 8:24am On Sep 01, 2015
1k001:
@ felixchip not sure whether you're still debating what to do. The answer in my opinion is to split test it. Do one for some time and then another for same amount time. Run both concurrently if possible.

Get a lot of feedback at during this period.

Come back after some time and decide based on the objective data you collect.

Nobody knows what will work better, only testing it will tell.

We had a survey, and my opinion was preffered.

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