Nextdoor, a real estate software solution, is among the latest and most interesting online social networking solutions for both homeowners and apartment dwellers. With Nextdoor, a new feature lets Nextdoor users post on Facebook what they are looking for in their neighborhoods. By doing so, Nextdoor is able to “scout” for potential renters or buyers, as well as send them advertisements that are relevant to the demographics of each resident’s apartment.
The software Nextdoor uses is an extremely simple one. It connects to Facebook through a cookie that is placed on each user’s PC. Nextdoor will then access the user’s Facebook account and use all the information that it has collected to personalize Nextdoor to the users’ needs. One can create a profile on Nextdoor for a specific neighbourhood like a townhouse in the East York district of Toronto or a condominium at Yonge and Sheppard in the West Toronto area. Users can then post on Facebook what they’re looking for in their neighbourhood, what they’d like to see in a neighbourhood (including schools, entertainment options, shops, parks, etc.)
Nextdoor then looks for any recent postings that relate to what it already has in its database. Once it finds such a posting, it alerts the user with an advertisement. Each time a user posts on Facebook, their information is added into the Nextdoor system and the system’s contacts are cross-checked with the database of nearby Nextdoor neighbourhoods. This means that any advertisements Nextdoor wants to display are matched with existing Facebook users, so that they too get shown in the news feeds of those who are interested in the neighbourhoods that they represent. Thus, with the initial public offering of Nextdoor, the company has created a method by which it makes money from the interests and conversations of the people who have chosen to be connected to it through the network of their choice.
If Nextdoor were to be successful, it stands to reason that it will have a huge impact on the future of social networking apps. At the present time, there are about a dozen Facebook apps currently active across the Canadian market, each with a few hundred thousand users. Even if all these apps were to suddenly disappear tomorrow, there would still be a great deal of potential for the others. Just imagine how many people there would be on Facebook! That’s six or more million people, all looking for local services that would cater to their individual needs.
The second way how does nextdoor make money is through the advertising options it offers its users. Since the city page is available to everyone who lives in the city, Nextdoor has a captive audience. Unlike some of the other social media networks, Nextdoor isn’t trying to build up a brand name through clever branding. Instead, the company relies on the reputation that its hundreds of individual neighborhoods have already built up. These neighborhoods have built the reputation to where they are considered to be “good” neighborhoods, so people will naturally want to keep their advertising consistent with those values.
The third way how does Nextdoor make money is through the selling tools it offers its subscribers. One of the more popular apps sold on the subscription site is the Nextdoor Marketplace, which allows residents to sell items to the public. In order to use the Marketplace, a user must belong to the subscription site, but he or she can choose to make their items available for browsing by anyone who wishes to purchase them. When someone browsing the Marketplace clicks an ad, Nextdoor will buy the spot for the corresponding price. Nextdoor makes money on these purchases by taking a small cut from the proceeds. The app also gives the individual who sells his or her item the option of setting up a store, which can bring in even more revenue.
Nextdoor has grown to the point where it can easily stand out among the social networking scene. It has the most comprehensive listing service out there, and it also allows its users to search for local listings from their homes. The app also allows its subscribers to post items for sale to its marketplace, and it allows its advertisers to post links to their ads in the marketplace. All of these options show how does nextdoor make money. Through the combination of the subscription, the marketplace, and the advertising options, Nextdoor looks set to continue to grow into a huge force in the smartphone world.