Notes

Online Classifieds Portal inside Uganda? Who Would like to Be considered a Millionaire?
Outside Looking In

I was minding my own business as usual on Facebook (liking every unique comment and looking at every link) plus then I saw the advert on my personal side bar with regard to an online free classified sites portal called dealfish. co. ug. I clicked on the particular link plus it got me to typically the site which said I really could post a free advert. I actually immediately created an advert for this website. I obtained an error concept: "Sorry www internet site addresses are not necessarily allowed. " I actually was very disappointed and sent an email to all of them querying this in addition to they told me that they don't accept the particular classified adverts to incorporate a web tackle reference. Well unfortunate on their behalf, I discovered Kampala mart. com It's after i realised that finally the particular internet revolution is taking place inside Uganda. Online categorized portals like eBay. com and gumtree. com, the most significant in the UK identified for some time. In Uganda, these are starting up to lift off huge time because regarding two very essential things:

1) Photography equipment is needs to ultimately get coupled to the rest of the entire world via huge dietary fibre optic cables becoming laid under the sea all over Cameras.
2) Mobile telecommunications companies continue to give cheap internet in order to their customers on their mobile phones including using 3G technologies.

Internet and the particular opportunities open to a good internet entrepreneur are incredibly serious that this is being forecasted that according to a good article I study at wired. company. uk ("get wealthy move to Africa")] Africa may possibly soon have the first internet billionaire, I agree and instantly inform you why in order to invest in this particular sector in Uganda but first;

THE PARTICULAR CONS(of course)

a single. Internet stability and even usage in Uganda

Usage and computer illiteracy

Whilst this is well and good which our web usage is growing progressively by the day, there still stay thousands of people who happen to be below the thankfully line, are personal computer illiterate and/or cannot afford to have web. A big portion of people still gain access to internet from workplace rather than residence which can hinder the convenience aspect.

Inside the UK such as internet usage has ended 82% of the population. Almost everyone has internet within their home. By comparison in Uganda, it truly is about 10%, nonetheless it is growing significantly due to the fact as per TERSEBUT statistics, internet transmission in Uganda features grown in advances in bounds. Inside 2000 only zero. 1% from the human population had use of net. It was nonetheless low in 2007 where only 2. 5% of the population had world wide web but this has considering that then significantly elevated to over on the lookout for. 6% in the year 2010!

Stability and cost of internet

World wide web stability in Uganda is very challenging. Many times internet is usually slow and w here it is far from slow that is expensive. This kind of of course is definitely changing but until then, this is still the main difficulty for potential customers. I however assume that with increasing internet on phones particularly with the telecom companies rolling out 3G, then this shouldn't end up being a difficulty especially if the online classifieds portal invests intensely in a mobile phone version, that is, one that is incredibly easy to view on cellphones and even not just typically the smart phones. This is critical due to the fact mobile phone use including internet will be probably the up coming revolution in Cameras and Uganda in particular. It currently is under method anyway.

2. The tiny fish will become coming after you....

We afterwards set out there the cost involving start up for a serious online free classified sites operation however the reality is that this type of business could be done from the laptop in they've bedroom. This will be a typical "briefcase" type of company.

Low cost These kinds of days a lot of web hosting companies will give you a free website and in many cases allow you to be able to host your web site with regard to free say for 6 months. That they will furthermore offer you with some sort of free domain. The particular cost of this particular all? �8. 99 for 6 weeks. 1and1. co. british for example present just such a package.

Therefore along with a little the help of a programming buddy if you have no IT understanding, you can established your website and have it managed for free!

In terms of advertising the web-site to reach Ugandans, effortless! There is an advertising trend happening and it is no wonder that Capital FM, the leading Ugandan FM station is shedding advertising revenue [if you will be to believe some sort of 14 September last year Redpepper article on the same. ]

I are not able to comment on the accuracy and reliability in the figures throughout the Redpepper write-up but they will be certainly right in the sense that will worldwide advertisers are shifting from conventional advertising of stereo, TV and newspapers. The reason is simple; with on the internet advertising, you can easily measure how several people are "seeing" your advert. An individual therefore can set an advertising price range and only pay with regard to people who are thinking about your offer because if they happen to be they will simply click it, hence "pay per click". In the event you didn't know this specific, you are decades late to typically the party! This is how Google has been producing its money in fact it is likewise how Myspace makes its money.

Now how can you advertise your web site to Ugandans? Nicely Facebook contains a "clever" computer. It is aware of where an consumer originates from therefore when you select to advertise with these, they will notify you the amount of "Ugandans" you will achieve with the maximum marketing budget. They also give you some sort of rough estimate associated with a good bare minimum advertising budget you may set. You could however choose exactly what you can afford.

In the basis involving the above, you are able to therefore set your advertising budget inside Facebook at even $2 (they will simply captivate advert to less people). If you established your advert to run for 30 days, that may be $60 which in an exchange rate regarding $1 = Shs 2, 605 works at Shs one hundred and fifty six, 300 a month.

You may therefore formally start this company with your aged laptop and just Shs 156, 300!

This is a good thing right? Yes, nevertheless so is this for everyone else. You can therefore assume that there will be many of these quickly and I actually mean SEVERAL ARE USUALLY COMING SOON, ABOUT TO CATCH THE ONLY ONE WHO WANTS TO GET RICH (OR DIE TRYING).

Why don't see how many online classifieds portal I can find using Google search:

dealfish. co. ug
kampalamart. com
kwatadeal. com
classifiedsuganda. com
easyuganda. net/about-us. htm
tagsaleuganda. com/
majestysdirectory. com/
And counting!

At this point the catch It implies therefore that for that investor, you include to ensure your site stands away from the masses so as to be able to attract both marketers and visitors.

A person will therefore include to employ different marketing strategies so that your web site has sufficient buyers coming there then you can appeal within the advertisers (where did you believe you were will make money from duh? ). Gumtree the leading online classified internet site in the BRITISH for example features clear statistics online to show their customer reach. This kind of information needs to be satisfactory to convince an advertiser.

Alternatively get more info will need to consider designing a specialized niche. autotrader. co. ug for example is 1 such site. They have focused solely upon cars.

3...... the top boys are arriving too!

Unlike a conventional business model claim farming or minicab business, online company are not place dependent and consequently whilst the buyers and sellers might be in Uganda, the organization owners may be foreign. After almost all, hosting a site doesn't need the Ugandan presence in addition to neither does "pay per click" advertising. As an trader in this particular sector, an individual can therefore anticipate that when you start off, you will end up being competing with typically the really big fish who in their global expansion will the majority of certainly look in order to utilize this market. Can you such as compete with Craigslist ads or eBay have to they choose to target on Uganda? How about Schibsted? Not heard of them? Well you should know them because in this particular business, these people are not slumbering, they are expanding.

Even dealfish. corp. ug for instance is the "Ugandan" branch of the particular Dealfish brand which in turn now count is definitely in 9 countries.

I will not have to get surprised if still local newspaper giants like The Brand new Vision(with Government's serious pockets) and The particular Monitor (which will be backed by typically the mighty Nation Mass media Group) soon venture into this sector. Brand new Vision for instance provides the enteruganda. contendo portal (under design as at time with this article) which often can easily be spun into the online classifieds site and the Keep an eye on has an online business directory which will easily have some sort of classifieds section.

As a result the business will be expected to become tight but is it the real McCoy?

And after this the POSITIVES

1. Excellent profitability and return about capital in less than 1 year

And right now looking to discover out why many people are looking to move into this industry. I define below my projections of the estimated earnings, start up expense and return upon capital that can easily be achieved with this sector.

I experience used the Kampalamart. com website as a model. Their own model is this particular; Customers can post ads for cost-free. Some can on the other hand choose to boost the visibility of their own ad to 3 locations online: The particular top most banner The side banner ad or even a featured advertising banner on important pages

These three prominent places unlike one other ads within just the myriad of ads in the classes cost money. These types of are the methods loans the company plus its this model I actually use to exhibit the particular profitability of this specific sector.

You have to of course be aware that there are other models of obtaining revenue:

You could such as charge intended for certain categories. Regarding example on bubble gum tree. com exactly where rentals and task postings(by employers) are really charged. You can easily use a shell out per click strategy whereby certain "adverts" are targeted to be able to specific customers dependent on their on-line behaviour (behavioural advertising).

I therefore placed my analysis while below. In the particular model below I present two somme columns. The provide position plus the expected position.

I task that there will be a 60% growth inside revenue and a new 25% increase inside costs. The expansion inside revenue is founded on web usage growth throughout Uganda between 08 and 2010 like per ITU statistics.

Analysis 1: Earnings information

(exchange level of $1=2, 605 used)

Total earnings:

Current: 5, 522, 600. Projected: 6, 836, 160

(based on 6 best banners, 6 part banners, 16 featured ads each incurred at $200, $22.99 and $20 monthly, respectively)

Expenses

1 ) Rent and services charge: Current: 1, 237, 375. Expected: get more info , 237, 375.

(Based on 25sqm in worker's home, a "grade A" building which fee rent at concerning $10-$18 per sq . metre(psm) and services charge of $2 psm. )

two. Internet hosting: Current: 36, 859. Projected: Not any alter

3. Income: Current: Shs. one, 800, 000. Expected: 2, 250, 1000

(3 staff containing of manager/IT employees and office administrator)

4. Marketing: Current: 656, 300. Projections: 820, 375

(including Facebook advertising plus other marketing techniques)

5. Transport, conversation and other: Present: 800, 000. Planned: 1, 625, 1000

(Estimated)

Total Costs. Current: 4, 530, 534. Projected: 5 various, 969, 609

Entire Monthly profit (revenue less expenses). Current: 992, 066. Expected: 2, 866, 551

Total Annual Revenue. Current: 11, 904, 792. Projected: 34, 398, 612

Research 2: Start up capital information

a single. Web development: 3, 907, 500

(estimated at $1, 500 intended for a good internet site to support online classifieds and e-commerce)

2. Rent(6 weeks in advance): Shs 6, 642, 750 3.

3. Workplace equipment: Shs. 7, 495, 000

(computers, office desks, EPISODES, internet installation, multiple purpose machine, lawful costs, signage) 5.

4. Miscellaneous: 849, 500

Total: Shs. 19, 894, 750

Return on funds (Total start way up capital/profit): Current: one particular. 67 years. Projected: 0. 57 many years

2 . not Gain upon eventual sale

The savvy investor might tell you of which if you need to find wealthy quick, start a business using the end in thoughts. Put simply, prepare intended for when you will eventually sale it. When you sooner or later sale the company you have effectively built, you will make money from the acquirer who will most likely be among those big boys like Schibsted? Not heard of all of them? I told you, you need to discover out about all of them!

3. Low launch costs

I did mention as one of the positives the reduced start upwards cost being able to result in a whole lot of competition. In case you are one serious investor, this particular however shouldn't prevent you. It ought to only spur a person into action. Typically the low costs is usually to your advantage.

An individual therefore don't actually have to start with the Shs 20m in accordance with the info above. You could start just like I mentioned with as little as Shs 156, 3 hundred and go about to become successful so go about, so what are you waiting for, do many of us not all want to be billionaires so freakin' bad?

SUMMARISING PLUS THE FINAL WORD

First of all the numbers.

Based on my analysis:

Funds investment(A): Shs nineteen, 894, 750

Earnings per year (revenue excluding all expenses) (B): Shs eleven, 904, 792

Come back on capital(years to get capital back or A/B) will be 1. 67 yrs

If you appearance at 60% expansion, you can on the other hand look to recuperate the investment in 0. 57 decades!

Now the fundamentals you must get right before investment.

Excellent website style. You need to choose a good internet site that can help it simple for users. A person need to keep in mind that few Ugandans have internet from home and so will most likely be browsing in office, within an internet coffeehouse or on the telephone and so a basic design which could support mobile telephone browsing is most likely

Appropriate aggressive marketing. You will need in order to move fast or even smart to record the market together with different marketing methods otherwise your site may get drowned within the crowd. I feel not necessarily saying splash from huge paper adverts(which we understand cannot necessarily get measured for success). There are quite a few methods for example the free press tale, interviews, article marketing, Facebook or myspace advertising et ing. A clear target audience. Who do a person want to reach? You need in order to know who you are targeting and even then go in to produce your services recover client throughout mind. An illustration I actually gave is auto trader. co. ug.

FINAL EXPRESSION

Despite the threat in the big competitors arriving, this is really among those sectors in which even the little man can win and even carry on to get the next Google, the next Facebook or myspace. You don't need to capture some sort of huge portion of typically the market to end up being successful. Kampalamart. contendo for example with the date of this article had about 388 Facebook enthusiasts. If this symbolizes their market talk about of an estimated 304, 000 Facebook consumers in Uganda[early 2011] in that case this represents just 0. 13% associated with the market NEVERTHELESS from the examination above, they would likely already be profitable! Need I say more, go on GET RICH (OR DIE TRYING).
My Website: http://www.4mark.net/addlink.aspx