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.