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OLX- Marketing blitz
Rank: Veteran Joined: 11/17/2009 Posts: 2,038 Location: GA
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OLX marketing budget must now be nearing the 50 million mark with prime time ads on all tv stations they even now have a TV show. and its still offering FREE services 
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Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
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madollar wrote:OLX marketing budget must now be nearing the 50 million mark with prime time ads on all tv stations they even now have a TV show. and its still offering FREE services someone explain to me like a 2 years old, how does olx intend to recoup this investment in Kenya? Receive with simplicity everything that happens to you.” ― Rashi
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Rank: Elder Joined: 10/9/2008 Posts: 5,389
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Have seen that they are all over the world from the US, India, Australia, Argentina, SA, Nigeria etc Cant believe how cheap houses are in the US, much cheaper than in Kenya despite our incomes being soooo low. e.g. http://knoxville-tennessee.olx.com/wyndham-pointe-in-karns-master-on-main-level-iid-527135524http://trenton-michigan.olx.com/trenton-mi-wayne-county-home-for-sale-3-bed-2-baths-iid-527102926
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Rank: Member Joined: 4/20/2010 Posts: 412 Location: nairobi
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Hizo nyumba ni za plastic. A fair comparison would be if you identify houses built using stone/concrete. The only time you should be looking down on others is when you are helping them up.
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Rank: Elder Joined: 10/9/2008 Posts: 5,389
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mmarto wrote:Hizo nyumba ni za plastic. A fair comparison would be if you identify houses built using stone/concrete. Even closer here in SA in Jo'burg, Ksh 14m can get you a nice brick and mortar stand alone house in a nice area with big garden and pool, like this one: http://johannesburg.olx.co.za/a-fantastic-family-home-in-kensington-house-for-sale-in-kensington-from-realnet-bedfordview-and-edenvale-iid-524813458
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Rank: Veteran Joined: 11/17/2009 Posts: 2,038 Location: GA
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dunkang wrote:madollar wrote:OLX marketing budget must now be nearing the 50 million mark with prime time ads on all tv stations they even now have a TV show. and its still offering FREE services someone explain to me like a 2 years old, how does olx intend to recoup this investment in Kenya? This has to be one of the strangest business models considering its replicated worldwide how do they finance their operations even google big as it is some services have to be paid for .
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Rank: Elder Joined: 3/19/2013 Posts: 2,552
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I think they intend to eventually take a portion of the ads revenue from google and newspapers once the site becomes the go to place for ads.Something like a search engine for ads.
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Rank: Veteran Joined: 4/1/2009 Posts: 1,883
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don't they pay more taxes/rates/insurance etc than kenya...such that owning a house may be more expensive in the long run...in kenya the rates are next to negligent and insurance for houses isn't even widespread if at all...once you have a house here you are all set.
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Rank: Veteran Joined: 1/4/2010 Posts: 1,668 Location: nairobi
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mkenyan wrote:don't they pay more taxes/rates/insurance etc than kenya...such that owning a house may be more expensive in the long run...in kenya the rates are next to negligent and insurance for houses isn't even widespread if at all...once you have a house here you are all set. A south african beach house costs same as langata house. Its all coz of Kenyan skewed taxation system. http://a4architect.com/2...using-costs-by-over-100/As Iron Sharpens Iron, So one Man Sharpens Another.
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Rank: Member Joined: 1/24/2013 Posts: 325
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You also have to remember those Diasporians or whatever they call themselves end up paying property taxes which are not cheap and condo fees alike...
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Rank: Member Joined: 1/24/2013 Posts: 325
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ChumsQuest wrote:You also have to remember those Diasporians or whatever they call themselves end up paying property taxes which are not cheap and condo fees alike... In addition, if you are renting out your unit you are liable for all maintenance and the renter can decide to give you the worst of nightmares feigning problems such as broken pipes, leaking roofs et ust to get away without paying rent. The law is mostly on the renter's side and the landlords end up very frustrated....
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Rank: Veteran Joined: 1/4/2010 Posts: 1,668 Location: nairobi
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here is an analysis of construction costs for a project in kenya compared to south africa http://a4architect.com/2...la-vs-south-africa-594/
a4architect.com/2013/07/12/7cost-of-housing-in-kenya-kitengela-vs-south-africa-594/ As Iron Sharpens Iron, So one Man Sharpens Another.
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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madollar wrote:dunkang wrote:madollar wrote:OLX marketing budget must now be nearing the 50 million mark with prime time ads on all tv stations they even now have a TV show. and its still offering FREE services someone explain to me like a 2 years old, how does olx intend to recoup this investment in Kenya? This has to be one of the strangest business models considering its replicated worldwide how do they finance their operations even google big as it is some services have to be paid for .
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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ChumsQuest wrote:ChumsQuest wrote:You also have to remember those Diasporians or whatever they call themselves end up paying property taxes which are not cheap and condo fees alike... In addition, if you are renting out your unit you are liable for all maintenance and the renter can decide to give you the worst of nightmares feigning problems such as broken pipes, leaking roofs et ust to get away without paying rent. The law is mostly on the renter's side and the landlords end up very frustrated.... Your deductions are have major flaws it doesnt matter what taxes the pay...top rate tax in the uk is 50%....for higher earners....yes you may say life is expensive and they are taxed more but they also earn more,make a comparison based on income per capita in USD,then factor in the taxes and make comparisons across board our houses are way expensive... Kenya has a total estimate of 22,000 mortgage accounts...pitiful. The government of most developed countries has subsidised housing...thats why housing is cheap us....NHC is sleeping... possunt quia posse videntur
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Rank: Elder Joined: 3/18/2011 Posts: 12,069 Location: Kianjokoma
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Years later, who understands how these guys intend to make money with their free listings? Some guy told me that they will eventually charge for those advertisers who want their items to appear on top. This will be important especially after they get lots of listings and there is compe for visibility between the ads madollar wrote:dunkang wrote:madollar wrote:OLX marketing budget must now be nearing the 50 million mark with prime time ads on all tv stations they even now have a TV show. and its still offering FREE services someone explain to me like a 2 years old, how does olx intend to recoup this investment in Kenya? This has to be one of the strangest business models considering its replicated worldwide how do they finance their operations even google big as it is some services have to be paid for .
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Rank: Elder Joined: 7/1/2011 Posts: 8,804 Location: Nairobi
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If the service is free then you're the product. The data itself may be monetized to the order of billions ..
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Rank: Elder Joined: 3/18/2011 Posts: 12,069 Location: Kianjokoma
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tycho wrote:If the service is free then you're the product. The data itself may be monetized to the order of billions ..
is this the case with our beloved wazua?
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Rank: Elder Joined: 7/1/2011 Posts: 8,804 Location: Nairobi
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Lolest! wrote:tycho wrote:If the service is free then you're the product. The data itself may be monetized to the order of billions ..
is this the case with our beloved wazua? Definitely. Consider how useful the forum is to stock brokers, political dealers and the like. Wazua is like one beast we've been indoctrinated to love.
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Rank: Member Joined: 1/22/2015 Posts: 682
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Lolest! wrote:Years later, who understands how these guys intend to make money with their free listings?
Some guy told me that they will eventually charge for those advertisers who want their items to appear on top. This will be important especially after they get lots of listings and there is compe for visibility between the ads
Yes, you are right. OLX is a company that's been around for a while now, so their business model is out in the open in other countries, just check the other olx countries to see. The reason they spent so much money marketing is because they understand that online classifieds is an area that eventually forms a natural monopoly. In such sectors, it is worth it to spend tons of money on marketing to get the dominant position. Once that is achieved, you then sit back and milk the monopoly.
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Rank: Hello Joined: 5/3/2011 Posts: 3
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There was also Dealfish who had the same concept ;Closed down after about 2 years of operation
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