Starting Online Classified Ads Internet Site Business

Building an online classified ads business is proving to be a very successful concept. While people mostly expect to be able to post text-based ads for free, you can make revenue by letting people to post enhanced advertise­ments (e.g., ads with pictures) or classified ads with hypertext links to a Web site. Extra income would come from direct advertising sales (e.g., banner ads). An alternative you may wish to think 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.

All you need to succeed is, basic computer skills, and a knowledge of Internet marketing.
Most of your budget 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.

One employee is needed to run this business. Organization is your biggest concern. A lot of confusion can come about from having a site with users posting classified ads. Clearly express 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.

For 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.

You can generate extra earning 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 make 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 income for you.

Online example, 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.