Notes

On-line Classifieds Portal within Uganda? Who Wishes to Certainly be an Uniform?
Outside Looking In

I was minding my own business as always on Facebook (liking every unique comment and reading every link) plus then I saw the advert on the side bar with regard to an online free classified sites portal called dealfish. co. ug. I clicked on the link and it got me to typically the site which mentioned I really could post a free advert. I actually immediately created the advert for this specific website. I received an error concept: "Sorry www web site addresses are not necessarily allowed. " I was very disappointed and sent a good email to all of them querying this plus they informed me they don't accept the particular classified adverts to incorporate a web address reference. Well unfortunate on their behalf, I discovered Kampala mart. possuindo It's once i knew that finally typically the internet revolution will be taking place within Uganda. Online labeled portals like amazon. com and gumtree. com, the largest in the UNITED KINGDOM identified for several time. In Uganda, these are beginning to remove large time because involving two very significant things:

1) The african continent is needs to ultimately get coupled to the remainder of the entire world via huge dietary fibre optic cables being laid under the sea all-around Photography equipment.
2) Mobile telecom companies continue to offer cheap internet to their customers issues mobile phones which includes using 3G technologies.

Internet and the particular opportunities available to an internet entrepreneur are really serious that this is being estimated that according to a great article I study at wired. corp. uk ("get wealthy move to Africa")] Africa might soon have their first internet billionaire, I agree and immediately tell you why to invest in this kind of sector in Uganda but first;

THE PARTICULAR CONS(of course)

one. Internet stability plus usage in Uganda

Usage and pc illiteracy

Whilst it is well plus good our internet usage is growing more and more by the working day, there still remain lots of people who are below the thankfully line, are personal computer illiterate and/or perhaps have been hit by the recent economic climate and are unable to have world wide web. A large portion involving people still gain access to internet from business office rather than house which can prevent the ease aspect.

Within the UK for example internet usage is finished 82% of the particular population. Almost every person has internet inside their home. By comparison in Uganda, it truly is about 10%, but it is growing significantly because as per ITU statistics, internet penetration in Uganda features grown in leaps in bounds. Throughout 2000 only zero. 1% from the populace had access to internet. It was even now low in 2007 where only a couple of. 5% of the population had net but it has given that then significantly increased to over nine. 6% in the new year!

Stability and expense of internet

World wide web stability in Uganda is very challenging. Often internet is slow and exactly where it is far from slow it is expensive. This specific of course is definitely changing but until then, this continues to be the main challenge for potential users. I however assume that with improving internet on phones particularly with the particular telecom companies going out 3G, in that case this shouldn't get a challenge especially when the online classifieds portal invests heavily in a mobile phone version, that is usually, one that is extremely easy to view on cellphones in addition to not just the smart phones. This is critical due to the fact mobile phone usage including internet will be probably the following revolution in Africa and Uganda in particular. It currently is under method anyway.

2. The little fish will become going after you....

I afterwards set out there the cost of start up for some sort of serious online classifieds operation nevertheless the truth is that this sort of business could be done from your laptop in they've bedroom. This is a typical "briefcase" type of business.

Low cost These kinds of days numerous internet hosting companies offer you a free website as well as allow you to host your web site with regard to free say for 6 months. That they will additionally give you with the free domain. The cost of this all? �8. 99 for 6 weeks. 1and1. co. british for example offer just such some sort of package.

Therefore with a little assistance from a programming good friend if you have got no IT knowledge, you can established your website and even have it published for free!

In terms of advertising the internet site to achieve Ugandans, quick! It comes with an advertising trend taking place and this is no wonder that Capital FM, the leading Ugandan FM station is shedding advertising revenue [if you will be to believe a 14 September 2011 Redpepper article on the same. ]

I are not able to comment on the accuracy with the figures within the Redpepper article but they happen to be certainly right in the sense that worldwide advertisers will be shifting from traditional advertising of radio stations, TV and magazines. The reason is definitely simple; with on the internet advertising, you can measure how several people are "seeing" your advert. You therefore can arranged an advertising finances and only pay regarding people who are usually thinking about your ad because if they are they will click on it, hence "pay per click". If you happen to didn't know this specific, you are yrs late to the party! This is the way Search engines has been generating its money in fact it is likewise how Facebook or myspace makes its cash.

Now how will certainly you promote your web site to Ugandans? Well Facebook contains a "clever" computer. It knows where an user originates from and so when you choose to advertise using them, they will inform you the amount of "Ugandans" you will reach with the maximum advertising budget. They also give you a rough estimate regarding a good minimum advertising budget you could set. You can however choose exactly what you have enough money.

About the basis involving the above, you are able to therefore set your current advertising budget inside Facebook at even $2 (they may simply show your ad to less people). If you set your advert to run for 30 days, that is certainly $60 which usually at an exchange rate of $1 = Shs 2, 605 works out at Shs 156, 300 a 30 days.

You are able to therefore theoretically start this enterprise with your aged laptop and only Shs 156, 3 hundred!

It really is a good issue right? Yes, but so is it for everyone else. You are able to therefore count on that there will become many of these types of very quickly and I mean SEVERAL ARE COMING SOON, YOU ARE NOT THE ONLY ONE WHO WANTS TO GET RICH (OR DIE TRYING).

A few observe how many on the web classifieds portal My partner and i can find with Google search:

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

At this point the catch It means therefore that to the investor, you possess to ensure the site stands out there from the masses so as to attract both marketers and visitors.

Additional info will therefore have got to employ different marketing strategies so that your website has sufficient buyers coming there then you can attract inside the advertisers (where did you think you were will make money from duh? ). Gumtree the primary online classified website in the UK for example features clear statistics online to show their very own customer reach. This information should be satisfactory to convince the advertiser.

Alternatively an individual will need to be able to consider developing a specialized niche. autotrader. co. ug for example is one such site. They have focused solely about cars.

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

Unlike a traditional business model claim farming or taxi cab business, online business are not place dependent and consequently whilst the buyers and sellers may be in Uganda, the organization owners may become foreign. After all, hosting an internet site doesn't need a good Ugandan presence in addition to neither does "pay per click" advertising and marketing. As an investor in this particular sector, a person can therefore expect that after you start, you will become competing with the really big seafood who within their worldwide expansion will many certainly look to be able to make use of this market. Can you one example is compete with Craigslist or eBay ought to they decide to concentrate on Uganda? How about Schibsted? Not heard of them? Well a person should know them due to the fact in this particular business, these people are not sleeping, they are increasing.

Even dealfish. company. ug for example of this is the "Ugandan" branch of the Dealfish brand which often at last count is usually in 9 countries.

I will not be surprised if in fact local newspaper titans like The New Vision(with Government's strong pockets) and Typically the Monitor (which is definitely backed by typically the mighty Nation Mass media Group) soon head to this sector. Fresh Vision for example of this gets the enteruganda. apresentando portal (under design as at date with this article) which usually can easily always be spun into a good online classifieds internet site and the Keep an eye on has an online business directory which can easily have some sort of classifieds section.

Thus the business will be expected to become tight but would it be the real McCoy?

And Now the BENEFITS

1. Excellent success and return upon capital within just 1 year

And right now you are about to find out why many people are looking to get into this field. I define below my projections of the estimated earnings, start up price and return in capital that may be achieved just for this sector.

I have got used the Kampalamart. com website because a model. Their particular model is this; Customers can article ads for free of charge. Some can nevertheless choose to boost the visibility of their ad to 3 locations on the webpage: The particular top most over the top The side the flag or A featured advertising banner on key internet pages

These three prominent places contrary to the other ads inside the myriad of ads in the types cost money. These are the people loans the company plus its this model I use to demonstrate the particular profitability of this particular sector.

You need to of course know that there are some other models of getting revenue:

You can easily such as charge with regard to certain categories. Intended for example on chewing gum tree. com exactly where rentals and task postings(by employers) are generally charged. You can use a pay per click principle whereby certain "adverts" are targeted to be able to specific customers depending on their on the internet behaviour (behavioural advertising).

I therefore placed my analysis like below. In the particular model below We present two somme columns. The present position plus the projected position.

I job that there would have been a 60% growth inside revenue and a new 25% increase inside costs. The expansion within revenue is founded on world wide web usage growth inside Uganda between 08 and 2010 as per ITU statistics.

Analysis 1: Success information

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

Total revenue:

Current: 5, 522, 600. Projected: 7, 836, 160

(based on 6 leading banners, 6 part banners, 16 presented ads each charged at $200, $100 and $20 a month, respectively)

Expenses

1 . Rent and service charge: Current: a single, 237, 375. Projected: 1, 237, 375.

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

a couple of. Internet hosting: Current: thirty six, 859. Projected: Not any modify

3. Income: Current: Shs. a single, 800, 000. Projected: 2, 250, 000

(3 staff including of manager/IT workers and office administrator)

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

(including Facebook advertising plus other marketing techniques)

5. Transport, conversation and other: Existing: 800, 000. Expected: 1, 625, 500

(Estimated)

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

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

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

Evaluation 2: Start up capital information

1. Website development: 3, 907, 500

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

2. Rent(6 a few months in advance): Shs 6, 642, 750 3.

3. Business office equipment: Shs. eight, 495, 000

(computers, office desks, UPS, internet installation, variable purpose machine, lawful costs, signage) four.

4. Miscellaneous: 849, 500

Total: Shs. 19, 894, 750

Return on money (Total start up capital/profit): Current: 1. 67 years. Estimated: 0. 57 decades

2 . Gain about eventual sale

Some sort of savvy investor may tell you that if you would like to obtain wealthy quick, commence a business together with the end in head. Put simply, prepare with regard to when you can eventually sale it. When you eventually sale the organization you have successfully built, you may make money using the acquirer who will most probably be some of those huge boys like Schibsted? Not been aware of them? I alerted you, a person need to get out about them!

3. Low start up costs

I would mention as one of the advantages the low start upwards cost having the capacity to result in a great deal of competition. If you are 1 serious investor, this specific however shouldn't stop you. It have to only spur an individual into action. The low costs can be to your advantage.

An individual therefore don't always have to begin with the Shs 20m in accordance with the data above. You could start like I mentioned together with as little while Shs 156, three hundred and go in to become prosperous so go upon, so what are you waiting for, do many of us not all wish to be billionaires so freakin' bad?

SUMMARISING PLUS THE FINAL WORD

Primary the numbers.

On such basis as my analysis:

Capital investment(A): Shs 20, 894, 750

Earnings per year (revenue excluding all expenses) (B): Shs 11, 904, 792

Returning on capital(years to get capital back or A/B) is 1. 67 decades

If you search at 60% development, you can nevertheless look to recover the investment throughout 0. 57 years!

Now the principles you must obtain right before trading.

Excellent website style. You need to be able to invest in a good site that will make it easy for users. A person need to remember that few Ugandans have internet in home and therefore probably will be surfing around in office, in an internet coffeehouse or on the contact and so a basic design which can support mobile cell phone browsing is probably

Appropriate aggressive marketing. You will need to be able to move fast or even smart to catch the market together with different marketing techniques otherwise your web site will certainly get drowned within the crowd. I am not really saying little on huge newspaper adverts(which we understand cannot necessarily be measured for success). There are several options for example some sort of free press tale, interviews, marketing with articles, Myspace advertising et ing. A clear target market. Who do a person want to attain? You need in order to know who you are targeting plus then go in to develop your service with that client inside mind. An illustration My partner and i gave is vehicle trader. co. ug.

FINAL PHRASE

Inspite of the threat with the big competitors approaching, this is truly some of those sectors exactly where however, little man can win and even go on to be the next Yahoo and google, the next Myspace. You don't have to capture some sort of huge area of the particular market to always be successful. Kampalamart. possuindo for example in the date of this article had about 388 Facebook supporters. If this symbolizes their market talk about of your estimated 304, 000 Facebook consumers in Uganda[early 2011] well then this represents just 0. 13% involving the market BUT from the research above, they would likely already be profitable! Need I point out more, go in GET RICH (OR DIE TRYING).
Read More: https://www.thedailyengage.com/getting-rid-of-your-belly-fat/