Overview of Business

Building an online classified ads business is proving to be a very successful concept. While people generally expect to be able to post text-based ads for free, you can generate income by allowing people to post enhanced advertisements (e. g., ads with pictures) or classified ads with hypertext links to a Web site. Additional revenue would come from direct advertising sales (e. g., banner ads). An option you may wish to consider is setting up an e-mail system for your users, where they can register for a free e-mail account. You could then send them advertisements based on their opt-in preferences.

Coupons, auctions, real estate information, and so on, are all related topics that would be appropriate for your site.

Skills Needed

All you need is the drive to succeed, basic computer skills, and a knowledge of Internet marketing.

Cost to Start This Business

Most of your costs will be attributed to Web design, development, and the initial promotion for your site. You will likely incur database development costs as well, because your site should include a searchable database of the various classified ads. Initial costs will likely run between $4,000 and $12,000.

Number of Employees Needed to Start

One employee is needed to run this business.

International Potential

There is lots of international potential for this type of business.

E-Business Model/Payment Processing Method

E-business level 3 is most appropriate for this type of business. For more information, see Part 1.

Important Business Issues to Be Addressed

Organization is your biggest concern. A lot of confusion can come about from having a site with users posting classified ads. Clearly state the guidelines for posting and maintaining ads. You also have to be on the watch for inappropriate postings.

It will require a greater investment, but you might want to have a fully automated site developed where, upon paying a fee, the client has access to a form to enter the text and any graphics to be included in his or her ad.

Online Marketing Techniques

• Develop as many links as possible from related Web sites, meta-indexes, and directories.

• You should consider having your site listed with various cybermalls that are frequented by your target market.

• Participate in newsgroups, mailing lists, and discussion forums where you could easily promote your business with a cleverly designed signature file.

For a more detailed description of these techniques, along with many other effective online marketing methods, I recommend the companion book 101 Ways to Promote Your Web Site. You can also find tons of free resources at Http:// www. susansweeney. com/resources. html.

Additional Income

You can generate additional revenue by selling sponsorship opportunities for your mail list. Your mail list should encourage participation from your Web site by asking if the visitor would like to be notified when you update your classifieds or when a particular type of item is posted.

You can generate banner advertising revenue from your site. If you have high traffic volumes, your classified advertisers will be happy and your banner advertisers will generate higher revenue for you.

Online Examples

Buy & Sell Online Classifieds

Http:// www. buysell. com

A Canadian buy-and-sell classified ads site.

The Ad Net!

Http:// www. theadnet. com Internet classified advertising.