

DormItem: 50,000 listings (3,700 a week), how we got there, and where we're going - zackcoburn
http://dormitem.com/blog/177

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natrius
I know optimism is nice and all, but what makes you think Facebook isn't going
to crush you?

~~~
epi0Bauqu
If you are only after millions and not billions, there is generally always
business room for a #2, 3, 4, etc. Different UI and customer acquisition
processes will naturally create different niches. Even if these niches are way
smaller than the biggest group, they could still make very lucrative
businesses if operated intelligently.

In classifieds in particular, there is often incentive to list the item
multiple places if you want to move it quickly. Spillover from the largest
sites alone could create a nice business.

~~~
natrius
These are college classifieds. Most of their target market visits their main
competitor _every day_. The number two or three general classifieds site could
maybe make a dollar or two, but when you're that marginalized in a niche
market, the chances of success are pretty slim.

I'm sure the people behind this site have other ideas, and the opportunity
cost of continuing to pursue this one probably isn't worth it. Best of luck to
them.

~~~
epi0Bauqu
Well if they can get 100,000 live listings and they can get average views up
to about 1 a day per listing (seems doable at their rate with organic traffic
and such) and get $10CPM off of Adsense or whatever (~ what I get across my
ad-based sites), then they're talking $1000/day or $365K a year. If it costs
essentially $0 to operate and it is one or two people, that is a decent salary
(especially for one). Additionally, if it costs hardly anything to maintain
(including their time), they can run this thing for cash and work on other
things at the same time.

Also most of their target market may visit FB every day, but not all. And some
will just search the Internet for listings. Some of course go to craigslist
and other sites. And plenty of non-college people could see the listings too
through Internet searches and contact the college kids. There are lots of
opportunities here.

I guess what I'm saying is if they want to give up and give me their site, I'm
sure I can make some money off it given their decent start without trying to
hard (read using much of my time) :)

~~~
dannymo2
Thanks for the shout out and ideas..I would put the emphasis on two things:

1 - with free listings (both on the FB marketplace and on other classified
sites) there is no limit to where a student would post to get exposure

2- there is plenty of distribution/technology opportunities outside of
Facebook. Granted facebook is a huge platform that is impossible to compete
with - we know that. But people use other sites and always will, and there is
always room for innovation. For example, Facebook doesn't have a global
marketplace search.

-Dan DormItem

