MEDIA-I: Online auctioner kills advertising on new website

<p>HONG KONG: After failing to generate revenue from online ads, </p><p>auctioneer Go2HK.com has dropped advertising altogether on its revamped </p><p>site, which launches this month in Hong Kong and Taiwan. </p><p><BR><BR> </p><p>According to Go2HK.com managing director and co-founder, Alan Chow, the </p><p>company's revenue model is based on commission from sellers after </p><p>successful transactions. </p><p><BR><BR> </p><p>The decision to eliminate ads on the site was also made after </p><p>advertisers requested larger ads for their money. </p><p><BR><BR> </p><p>"We cut the banners and decided to position our revenue sources mainly </p><p>from commission. We charge sellers commission rates ranging from two per </p><p>cent to five per cent per item after a successful transaction. Although </p><p>we are still losing money, we expect to break even in March because we </p><p>have successfully narrowed our monthly loss from HK$463,000 </p><p>(US$59,360) to HK$75,000 from the beginning of this year </p><p>to August," siad Chow. </p><p><BR><BR> </p><p>The online auctioner's competitors Emaimai, Yaz and Clubciti have either </p><p>changed direction or closed. Sun Hung Kai Properties' Red-dots.com is </p><p>its strongest rival along with Yahoo. </p><p><BR><BR> </p>