Revenue Model – Craigslist

Craigslist provides online classifieds and forums for jobs, housing, for sales, communities, gigs etc. It was founded in 1995 and receives more than 50 billion page views a month.  

REVENUE MODELS

Listing Fees – It charges for ads in selected cities: $75 per ad for paid jobs the San Francisco Bay Area; $25 per ad for paid jobs in New York City, Los Angeles, San Diego, Boston, Seattle, Washington DC, Chicago, Philadelphia, Orange County (California) and Portland, Oregon, and $10 per ad for apartment listings in New York City. Similar ads in other areas, and ads in other categories, are free. No charge is made for a successful sale or contact.

Craigslist has not given a profit since inception. The above are able to cover operational costs. Potential sources of revenue through advertising are being mulled in the future. The management however claims that the website’s primary motive is to maintain and enhance user experiences and any revenue model which impacts the same will not be adopted.

Revenue Model – Yelp (Hyperlocal Classifieds)

Yelp is an online classifieds business, helping users find local businesses.

REVENUE MODELS

Local Advertising Sales – Banner ads & sponsored listings are sold to businesses which are reviewed on the website.

Brand Advertising – Brands can give banner and text ads on Yelp.

Other Services – Yelp has other services which generate revenue for it. Some of them are

Eat24 – Online ordering system for restaurants

Seatme – Online restaurant reservation system.

CONCERNS

Extensive Sales Force – To pitch to local businesses, a large sales force is required. Over 65% of the total employee strength of Yelp were sales people.

Revenue Model – Olx (Online Classifieds)

Olx is an online classifieds startup based in India.

REVENUE MODELS

Google Ads – Banner ads as well as sponsored listings are Google ad products which Olx uses to make money. Banner ads are the big banners which run on top of the classifieds and also on the left side of them. Sponsored listings are the links you see above the organic search results of keywords.

Featured Listings – Classified owners can highlight and upgrade their listings to featured listings to get them to be placed above the free listings. Ad placements are based on algorithms running within the site.

CONCERNS

Limited Revenue – Featured listings tend to be a limited source of revenue as only a few classifieds out of the total get upgraded. Also in a classifieds portal, sellers do not pay listing fees (as compared to ecommerce websites).