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