Notes

Online Classifieds Portal in Uganda? Who Wants to Certainly be a Millionaire?
Outside Looking In

I was minding my own organization as usual on Fb (liking every randomly comment and reading every link) and even then I could see a good advert on the side bar for an online classified listings portal called dealfish. co. ug. I clicked on the particular link and it got me to the particular site which mentioned I could post a new free advert. I actually immediately created the advert for this specific website. I got an error concept: "Sorry www website addresses are not allowed. " We were very annoyed and sent a good email to all of them querying this and they informed me they don't accept typically the classified adverts to include a web address reference. Well unlucky to them, I found out Kampala mart. apresentando It's once i realized that finally the internet revolution is usually taking place in Uganda. Online classified portals like amazon. com and gumtree. com, the largest in the UK identified for many time. In Uganda, these are beginning to remove major time because regarding two very crucial things:

1) Africa is needs to lastly get coupled to the remainder of the world via huge fibre optic cables getting laid under the sea all over The african continent.
2) Mobile telephony companies continue to provide cheap internet to their customers on the mobile phones which include using 3G technologies.

Internet and the opportunities offered to a good internet entrepreneur are extremely serious that this is being forecasted that in accordance with a good article I examine at wired. corp. uk ("get rich move to Africa")] Africa might soon have it is first internet billionaire, I agree and immediately inform you why to be able to invest in this specific sector in Uganda but first;

THE CONS(of course)

just one. Internet stability plus usage in Uganda

Usage and pc illiteracy

Whilst it is well and good which our world wide web usage keeps growing progressively by the time, there still stay thousands of people who are below the lower income line, are computer illiterate and/or cannot afford to have internet. A huge portion regarding people still gain access to internet from office rather than residence which can impede the ease aspect.

Within the UK for example internet usage is over 82% of the population. Almost everyone has internet in their home. In contrast in Uganda, its about 10%, nonetheless it is growing significantly mainly because as per TERSEBUT statistics, internet transmission in Uganda offers grown in jumps in bounds. In 2000 only 0. 1% in the human population had usage of net. It was nevertheless low in the year of 2007 where only a couple of. 5% of typically the population had world wide web but it has considering that then significantly elevated to over nine. 6% in the year of 2010!

Stability and expense of internet

Internet stability in Uganda is very complicated. Many times internet is usually slow and wherever it is far from slow it is expensive. This particular of course is definitely changing but until then, this remains the main difficulty for potential consumers. I however count on that with improving internet on mobiles particularly with typically the telecom companies moving out 3G, then this shouldn't be a challenge especially in case the online free classified sites portal invests intensely in a mobile version, that is definitely, one that is extremely easy to view on mobiles and not just typically the smart phones. This particular is critical mainly because mobile phone usage including internet is definitely probably going to be the next revolution in The african continent and Uganda inside particular. It previously is under method anyway.

2. The limited fish will get coming after you....

We down the road set away the cost of launch for some sort of serious online classified listings operation but the truth is that this particular type of business can easily be done from your laptop in someone's bedroom. This is definitely a typical "briefcase" type of company.

Low cost These kinds of days a lot of internet hosting companies offer you a free website and also allow you to be able to host your internet site regarding free say intended for 6 months. They will in addition provide you with a free domain. The particular cost of this kind of all? �8. 99 for 6 months. 1and1. co. united kingdom for example offer you just such the package.

Therefore with a little the help of a programming buddy if you include no IT information, you can setup your website in addition to have it hosted for free!

Regarding advertising the web-site to reach Ugandans, effortless! There is an advertising revolution taking place and that is no surprise that Capital FM, the main Ugandan FM station is burning off advertising revenue [if you will be to believe some sort of 14 September 2011 Redpepper article on the same. ]

I cannot comment on the accuracy and reliability of the figures in the Redpepper write-up but they happen to be certainly right throughout the sense that worldwide advertisers are shifting from standard advertising of stereo, TV and papers. The reason is usually simple; with on-line advertising, you can measure how a lot of people are "seeing" your advert. A person therefore can arranged an advertising budget and later pay intended for people who are usually enthusiastic about your advert if they will be they will click on it, hence "pay per click". In the event you didn't know this kind of, you are yrs late to the particular party! This is one way Yahoo has been producing its money and it is likewise how Facebook or myspace makes its cash.

Now how will certainly you promote your web site to Ugandans? Nicely Facebook has a "clever" computer. It is aware of where an end user originates from and so when you select to advertise using them, they will inform you the number of "Ugandans" you will get to with the greatest marketing budget. They in addition give you the rough estimate of a good bare minimum advertising budget you may set. You can however choose exactly what you are able to afford.

About the basis involving the above, you are able to therefore set your own advertising budget inside Facebook at actually $2 (they may simply entertain advert to less people). If you set your advert to operate for 30 days, that may be $60 which usually at an exchange rate regarding $1 = Shs 2, 605 works at Shs 156, 300 a month.

You may therefore technically start this company with your older laptop and only Shs 156, 3 hundred!

That is a good issue right? Yes, nevertheless so is this for everyone else. You can therefore assume there will be many of these kinds of right away and My partner and i mean MANY OF THESE ARE USUALLY COMING SOON, YOU AREN'T THE ONLY 1 WHO WANTS TO BE ABLE TO GET RICH (OR DIE TRYING).

A few see how many on the web 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!

Today the catch This means therefore that to the investor, you have got to ensure your current site stands out from the audience so as in order to attract both marketers and visitors.

You will therefore include to employ numerous marketing strategies and so that your site has sufficient consumers coming there and after that you can lure in the advertisers (where did you consider you were going to make money from duh? ). Gumtree the primary online classified web site in the UNITED KINGDOM for example has clear statistics on their website to show their particular customer reach. This particular information must be adequate to convince an advertiser.

Alternatively an individual will need to consider making a specific niche market. autotrader. co. ug for example is 1 such site. They have got focused solely in cars.

3...... the big boys are coming too!

Unlike a traditional business model point out farming or cab business, online organization are not area dependent and for that reason whilst the customers and sellers may be in Uganda, the business owners may always be foreign. After most, hosting a site doesn't need a good Ugandan presence and neither does "pay per click" marketing. As an buyer within this sector, a person can therefore anticipate that as soon as you commence, you will be competing with the really big fish who inside their global expansion will almost all certainly look to be able to make use of this marketplace. Can you one example is compete with Your local craigslist ads or eBay have to they opt to concentrate on Uganda? What about Schibsted? Not heard of them? Well a person should know them since with this business, that they are not resting, they are broadening.

Even dealfish. company. ug for example of this is the "Ugandan" branch of the Dealfish brand which usually eventually count will be in 9 places.

I will not get surprised if in fact local newspaper leaders like The New Vision(with Government's strong pockets) and The Monitor (which is backed by the mighty Nation Media Group) soon head to this sector. Fresh Vision for example of this gets the enteruganda. apresentando portal (under building as at day with this article) which usually can easily end up being spun into the online classifieds website and the Keep track of has an on the web business directory which could easily have some sort of classifieds section.

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

And after this the ADVANTAGES

1. Excellent productivity and return in capital in less than one year

And right now you are about to discover out why everybody is looking to proceed into this industry. I placed beneath my projections regarding the estimated success, start up price and return upon capital that could be achieved in this sector.

I need used the Kampalamart. com website as a model. Their model is this specific; Customers can write-up ads for cost-free. Some can on the other hand choose to improve the visibility of their ad to about three locations on the webpage: Typically the top most hysterical The side advertising or possibly a featured ad banner on key internet pages

These 3 prominent places as opposed to another ads inside the myriad of advertisements in the groups cost money. These kinds of are the people financing the company in fact it is this model We use to exhibit the profitability of this kind of sector.

You have to of course bear in mind that there are additional models of receiving revenue:

You may such as charge with regard to certain categories. Regarding example on bubble gum tree. com where rentals and career postings(by employers) are charged. You can easily use a pay per click strategy whereby certain "adverts" are targeted to specific customers relying on their on-line behaviour (behavioural advertising).

I therefore set out my analysis like below. In the particular model below I present two counts columns. The present position and the forecasted position.

I project that there would have been a 60% growth found in revenue and a new 25% increase inside costs. The expansion within revenue is dependent on internet usage growth within Uganda between 08 and 2010 seeing that per ITU figures.

Analysis 1: Success information

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

Total income:

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

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

Expenses

1 . Rent and services charge: Current: a single, 237, 375. Forecasted: 1, 237, 375.

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

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

3. Salary: Current: Shs. a single, 800, 000. Estimated: 2, 250, 500

(3 staff composed of of manager/IT personnel and office administrator)

4. Marketing: Present: 656, 300. Predictions: 820, 375

(including Facebook advertising plus other marketing techniques)

5. Transport, communication and other: Current: 800, 000. Expected: 1, 625, 1000

(Estimated)

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

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

Total Annual Earnings. Current: 11, 904, 792. Projected: thirty four, 398, 612

Analysis 2: Start way up capital information

1. Website development: 3, 907, five hundred

(estimated in $1, 500 regarding a good web site to support on-line classifieds and e-commerce)

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

3. Office equipment: Shs. eight, 495, 000

(computers, office desks, UPS, internet installation, numerous purpose machine, legitimate costs, signage) 5.

4. Miscellaneous: 849, 500

Total: Shs. 19, 894, 750

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

2 . Gain in eventual sale

A savvy investor may tell you that if you need to obtain wealthy quick, start off a business using the end in head. Quite simply, prepare for when you might eventually sale it. When you at some point sale the company you have effectively built, you will certainly earn money from the acquirer who will most very likely be among those huge boys like Schibsted? Not read about them? I alerted you, an individual need to find out about them!

3. Low launch costs

I do mention as 1 of the benefits the low start upward cost having the capacity to outcome in a whole lot of competition. If you are a single serious investor, this specific however shouldn't deter you. It should only spur an individual into action. The low costs can be to your advantage.

An individual therefore don't necessarily have to start with the Shs 20m as per the information above. You can start like I mentioned together with as little while Shs 156, 3 hundred and go in to become prosperous so go on, so what are you waiting for, do we not all wish to be billionaires so freakin' bad?

SUMMARISING ALONG WITH THE FINAL WORD

Primary the numbers.

Based on my analysis:

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

Revenue per year (revenue excluding all expenses) (B): Shs 14, 904, 792

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

If you glimpse at 60% progress, you can nevertheless look to restore the investment throughout 0. 57 decades!

Now the basics you must get right before trading.

Excellent website style. You need to choose a good website that will assist it effortless for users. A person need to keep in mind that not many Ugandans have internet at home and thus will most likely be looking in office, inside an internet restaurant or on the telephone and so a simple design which may support mobile mobile phone browsing is most likely

Suitable aggressive marketing. An individual will need to be able to move fast or smart to record the market using different marketing approaches otherwise your internet site will get drowned inside the crowd. I am not necessarily saying sprinkle on huge newspaper adverts(which we understand cannot necessarily be measured for success). There are numerous options for example a new free press story, interviews, marketing with articles, Myspace advertising et al. A clear target audience. Who do check here want to attain? You need to be able to know who you are targeting plus then go in to produce your support get back client in mind. An example My partner and i gave is automobile trader. co. ug.

FINAL WORD

Inspite of the threat in the big competitors coming, this is genuinely some of those sectors where even the little person can win in addition to carry on to turn out to be the next Google, the next Fb. You don't have to capture the huge percentage of the market to become successful. Kampalamart. apresentando for example at the date of this kind of article had concerning 388 Facebook supporters. If this represents their market share of an estimated 304, 000 Facebook customers in Uganda[early 2011] in that case this represents only 0. 13% regarding the market NEVERTHELESS from the examination above, they would certainly already be lucrative! Need check here state more, go upon GET RICH (OR DIE TRYING).
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