Yahoo Classifieds (SG) is officially dead and there was a discussion at Sammyboy.com that suggests Mocca.com maybe in trouble too. Yup, apart from sharing juicy secrets and ‘artistic’ media, the boys there are business-savvy too and they certainly did not hold any reservations with their scathing remarks. The (New) Media Slut’s article about the departure of Mocca.com’s Content Editor, Zafar Hasan Anjum, certainly added more fuel to the speculation. You can read about this on PR Web, in a press release by Fairfax Business Media. I did my own investigation and checked with people in the industry - they were aware of changes in Mocca.com’s business model but didn’t know anything about the alleged retrenchment that took place in December. I do understand the need for media companies to look towards the Internet, with the rising ADEX on the new medium. But taking an old idea (I still remember using Interauct and ClassAds from my NTU days in pre-2000), throwing advertising dollars and then HOPING for it to work, is just silly. 1. Anyone Can Start An Online Classifieds 2. What’s So Special About Yours? 3. Singaporeans Love Free Stuff Lump all 3 points together, and you’ll realize that it’s a very competitive niche with a low barrier of entry and you’re trying to beat the odds by charging for ad listings to feed an over-staffed business. So, would I be in this business given a choice? No way.
Today, anyone can download or purchase a ready PHP script for under $100 and start their own online classifieds in minutes. You don’t need advanced programming knowledge or a team of 10 people to run one. Get bloggers to review your site and throw an iPhone as the grand prize for good measure, and you’ve got a winner.
Having features like video uploads are nice, but are they necessary? Craig’s List is immensely huge in the U.S. despite it’s plain vanilla design and very basic features. That being the case, how do you attract people from the many other online classifieds in Singapore?
Put up a signboard that has the word ‘FREE’ on it and you’ll see Singaporeans forming a beeline. Okay, maybe I’m exaggerating but the Internet started out as FREE, and the perception for many services still remain as that. I mean, would the mass market pay for email or would they simply use Gmail, Hotmail or whatever mail? It’s the same for classifieds - the majority won’t pay for it.
Whoa! My boss and I were just talking about Mocca and other classifieds stuff, and reckon that something like Craiglist will win at the end of the day. It will be really a huge waste of money if Mocca closes down after millions of dollar in advertising (they spend about S$2M in September 07 alone)
But what’s more shocking is that Yahoo! Classifieds SG closed down? WOW! This is the first time I hear something of Yahoo! got shut down.
Comment by Razlan on January 17, 2008 at 11:07 pm
That’s what happens when you don’t have a sound business model and an over-staffed team.
Comment by Larry on January 18, 2008 at 8:09 am