Le Bon Coin, the Freemium business model
Le Bon Coin is the website which has been developed according to key concepts differing from what others propose in the same sector. Simplicity, freemium, quality and focus are the only thing which really matter and this is exactly what is provided by the website. Le Bon Coin differs from its main competitors, eBayand PriceMinister, which offer more advanced technology with more appealing colors and design.
Le Bon Coin has imposed its strategy, it was not supposed to have such a great success but it worked out thanks to the users who adopted the new concept that relies on easiness of use. Some users, either buyers or sellers abandoned the two major competitors to do their business on Le Bon Coin because ofeconomic reasons or even for the simplicity of use. After two years, it already overtook the leader, eBay as regards of the number of persons who go on the website every day.
Even if it is a free website with some options for which sellers have to pay a certain amount, the website is profitable, with the traffic that it generates, advertisers are enticed to place their advertising campaign onthe second page. After four years of business, Le Bon Coin is now worth 22 millions euros, and it is likely to increase again and again.
Table of contents
I) History and origins
1) Description of Le Bon Coin
3) Simplicity as a key concept
4) The absence of design
II) The freemium technology
III) The rapid growth of LeBon Coin
1) What made the difference with other website
2) What made the difference with others websites offering the same service?
3) Why Le Bon Coin has become more famous than any other website in the sector?
Le bon coin is a French website on which people post their offers for the service or the good theyneed to sell. Le Bon Coin became the first French website in its sector and its reputation comes from the easy use and the diversity of classified ads, they can be for automobile, housing, animals, even household appliances, and even services. Well what is important to people is that they can find whatever they look for... The most relevant particularity comes from the free model, people do not haveto pay to post or to have a look at the offer.
Le Bon Coin has been particularly smart in its way to manage its communication, users made it become famous thanks to the by word-of-mouth. Le Bon Coin did not communicate in the media or even in magazines for « geeks », there were any development based on communication or marketing, and even on innovating technology. Le Bon Coin has beentransformed in a powerful application which is now competing with the most famous website offering C2C.
In this essay, it is important to demonstrate how such a simple idea can turn out to become a cash-cow.
In the first part of the essay, we will talk about the history of Le Bon Coin. We will then focus on the way to earn money in such a system. In the third part, we need to focus on the economic model.And finally, we will discuss the rapid growth of such a website.
I) History and origins
1) Description of the website « Le Bon Coin », history
In 1996, in Sweden, a computer scientist, Pier Siri, worked in his garage, and had a great idea to create a website specialized in classified ads for C2C. The website became preponderant in 1990, then was a leader and finally becamethe leader on the Swedish market. The group Schibsted, which owns, the free daily magazine, 20 minutes decided to buy the website. 15 years after, Internet changed a lot, but Blocket remains the same.
Le Bon Coin is a copy of Blocket, it has been created in 2006. It was at the origin the collaboration between two European groups. The first group was from Sweden, it holds Blocket.se which has been...