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What is Letgo?
Letgo is a mobile phone app that acts as a classifieds section where you can post items for sale and make money. It is a direct to the community type of interaction, unlike eBay, where most items are mailed. Letgo users are commonly in a certain proximity to each other and physically meet in person for item exchange. The app is set up in such a way that it searches for other people using the app within a certain radius of your phone. The rules are pretty laid back and similar to Craigslist. The difference being, that there is only a place to buy and sell items, there are no other sections, like jobs or personals on there.
How Letgo Makes Money
Letgo is a totally free user app. They make most of their money from advertising revenue. The money-making strategy here is to attract millions of users and then sell advertising space to companies. The advertising scheme is also geo-targeted so that local business ads are relevant to application users. The advertisement push algorithm looks at a combination of, the items the user is looking to purchase and their location to push ads more likely to get a click than not.
Recent Developments
A recently developed user feature in the app called bump is another way that Letgo utilizes to generate income. This feature allows the user to pay to have their listings bumped to the top so that shoppers will see their listings first, for a set amount of time. The premium feature costs $1.99 per listing, it will bump listings to the top of the line for 24hrs in order to gain more attention as listings are otherwise posted in chronological order of the time of listing.
Fun Facts
Letgo is currently growing faster than its predecessor when it first started, Craigslist. It is believed this is due to the ease of use on a mobile phone, the ability to easily connect buyers and sellers through live chat function and the artificial intelligence it uses to deliver advertising to customers. Letgo’s valuation currently stands at around $1 billion dollars.
The founder, Alec, believes that the app solves one of the world’s largest problems, that is the issue of pollution through consumerism. The world economy lives off of people endlessly buying things that they do not need, the app gives them the ability to move items that still have a use life through society rather than stuffing them straight into a hole in the ground with all of the world’s other garbage.
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