How Classified Websites Make Money? 1

How Classified Websites Make Money?

How online classified websites makes money? How they make money when users “Post Free Ads” in their website?

Update: We have a list of different live Classified Websites and Business Directories along with example Scripts and Themes to make sites similar to them here.

Here we will learn five different money making process generally followed by all free classified websites.

We have studied many Online Classified sites and found these Money Making Opportunities from these Classified Websites stated below alternatively you can say Profitability Model of Classified Sites. Classified sites makes money from these following systems. I have demonstrated all ways with proper examples below. Please read on.

How Classified Websites Make Money? 2

Five ways to make money from online classified websites:

Top five general ways are described here and Additional four ways to make money from Classified Websites are below. Keep reading to know more and don’t forget to comment if you need clarification.

1st way to Earn Money from Free Classified Website:

Google, Bing etc. Ad-Networks: You can place CPC, PPC, Fixed Banner etc. type Advertisements at different places of your Classified site. Below example shows a Google AdSense ad at Olx website. If your new site is not accepted in Google AdSense then you can try to show different Affiliate Products and Service Ads.

How Classified Websites Make Money? 3

2nd way to Make Money from Free Classified Website:

Premium Classified Websites: They charges money per Advertisements and/or for specific time to show these Ads. If you are a start-up and have a very specific micro niche  (here Niche means a very specified type of product/service category like Vintage Cars, Rare and Old Coins etc.) only then you can Charge Consumers per Advertisement because there are numerous Free alternatives out there for General All in one type classified site but Niche only sites are very few. This below example shows how JamesEdition, a Luxury Car Marketplace classified site charges their sellers.

How Classified Websites Make Money? 4

3rd way to Generate Money from Free Classified Website:

Feature based Pricing: Initially Posting of Advertisements may be FREE but with limited features like restricted number of Photos, Videos, contact details or other specific features like Messaging, Calling or Chat. Then you can charge users to use these features as per their requirements. Example of CityVibe, an Escort Classified  site is shown below. We can see different features they provide in their classified website to make money. (Click on image to go to official site and there you can find all possible features of a good premium classified website.)

How Classified Websites Make Money? 5

4th way to Get Money from Free Classified Website:

Top Features: You can charge users for showing their Advertisements on ‘Top of others’ with Bidding or Fixed pricing. Another way can be restricting Free Ads to one category and/or City and Premium to more than one. Below Quikr Premium Ad Credit packs are good examples we can see.

How Classified Websites Make Money? 6

Fifth way to Make Money from Free Classified Website:

Selling Consumer Data and Database: Lots of traffic flows in and out these type of Classified Sites in everyday basis. Many businesses buys Consumer Data and analytical data insights from these Classified websites.

** Additional Ways to Generate More Money from Classified Websites are:

  • Start your Own Advertising network inside your Classified Website and Sell Ad Spots to your users for specific traffic monthly basis or PPC basis.
  • Make an Android and iPhone App for your Classified website and start Google Admob Advertising inside your App.
  • Build Auction feature inside your Classified Site and charge users for using Auction feature.
  • If your Classified website is Hyper-Local and servs inside a limited area like a City or Town they you can build a Delivery Network to give additional service for your users. They can use your delivery network to transport goods from seller to buyer. Example Food Home Delivery services like Zomato, Swiggy etc.

Remember: If it is a new startup then you have to wait for some times to Make Money. After a sufficient number of Classified Advertisements posted by users  and regular “User Visits” then you can think of these alternatives to make money out of it.

Also you can check our other articles like :

Everything to know before Starting an Online Classified Website

Business Process Model of Online Classified Sites

Is There Any Empty Market For Another Classifieds Site Still Today?

About Sukanta Rakshit

He is the founder of Smart Cyber Zone: A Creative Web Designing Agency. He holds professional degrees like MBA in Information Systems, MCSE and Certified Security Specialist and spent 10+ years in IT arena. Contact him for E-Commerce, SEO, Web Development or any IT Consultancy Services.

4 Comments

  1. Thanks, I have also launched a Classified website in Pakistan. But am confused that after how many weeks or months I should Start advertising on My Website.

    1. If you are focusing on Advertising then follow the rules of YouTube. Generally they accept an account for showing Ads after 1000+ Subscribers and 10,000 or more total Views. You can also follow this because if there is not enough traffic your Ads are worthless to put.

  2. Well explained you can also put affiliation etc. I hope you should also add this to your content and increase its length. But thanks for sharing.

    1. Good Suggestion. Affiliation also is a kind of Advertisement and it can be an additional source of income.

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