Foreign Perspectives

Two years ago as I was promoting my free listings sites I received an interesting e-mail which demanded to know how I could possibly run the sites without charging for them.

In fact, it turned out to be from someone who was running a similar site which charged around £50/year for very similar listings to my own sites. That site happened to be up for sale and for a time I was quite interested in aquiring it but for various reasons that never came to pass.

One interesting point from that was that the profitability of his site was quite comparable to my own once you adjusted for the different number of entries on our respective sites. In fact, it appeared that the “free” model that I was using would actually be much more profitable than the charging model that he was using had simply taken over his database of expired subscriptions and put them on my own site as live “free” entries.

How can that be? Simply because I place adverts on my site whereas he didn’t and, of course, since my listings are “free” people go onto the site and never leave whereas he was in a treadmill each year to attract new entries to replace those that had decided not to renew. In fact, that lack of turnover means that my own sites will overtake the size of any comparable subscription based site sooner or later.

So are my sites free? I certainly don’t charge people for listings (though, for psychological reasons I quote a notional price). Yet I obviously get income from them so somebody is clearly paying.

In the real world there are usually limits to “free” services like this. The UK National Health Service has all kinds of problems in running “free” as people have a tendency to expect there to be no limits to what they should do, ignoring the fact that clearly the service isn’t free as it’s paid for in taxes. Yet, on the Internet, these limits don’t seem to apply: if I ever get to the point of having, say, 50000 entries on the sites it would cost little more to run than if I had 5000 entries.

Free, or rather ad-supported, seems to be the future for services on the Internet but I’m sure that many old-school types will continue to regard these with suspicion when compared to equivalent services which charge.