In today’s digitized world, the online marketplace for buying and selling products has witnessed a remarkable surge. With technological advancement, establishing a business in the eCommerce industry has become easier and more accessible than ever before. 

People now search online before making purchases or availing of services, and numerous online buy-sell platforms cater to both buyers and sellers. 

A few popular applications in this sector are Letgo, OfferUp, eBay, Craigslist, and more. Out of all those, Latgo has emerged as the clear favorite in terms of usage in recent times. 

Users are enchanted by Letgo’s impressive features, and its success is evident from its impressive revenue of $1.5 billion within just three years of its launch. 

This remarkable achievement has sparked interest among startups and entrepreneurs, driving them to seek a deeper understanding of Letgo’s workings and enabling them to develop their Letgo clone app. 

Hence, this blog aims to shed light on the revenue generation strategies and business model of an online buy-sell marketplace app like Letgo.

Let’s start by delving into the business model of the Letgo clone app. 

Business Model of Online Buy-Sell Marketplace App Like Letgo

The business model of Letgo-like apps revolves around being an online classified marketplace where users can easily buy and sell products. 

Similar to OLX and Letgo, a Letgo clone operates as a mobile app and is available in many languages across the world. With an impressive user base, the platform offers two key features:

  • Letgo Pro
  • Letgo Featured Listings 

What sets online buy-sell marketplace app like Letgo is its innovative use of geo-location, image recognition, and artificial intelligence. The app tailors product listings based on the users’ location and preferences. 

Ads are positioned primarily within a 50-mile radius of the user, and ads aim to resonate, considering that the core transactions occur offline. 

Users can efficiently apply various filters, such as 

  • Location
  • Distance
  • Category
  • Freshness 
  • Price

to refine their search and find the right products. This personalized approach enhances the overall user experience on the Letgo-like platform. 

Monetization Methods of Buy-Sell Marketplace App Like Latgo

Now, let’s address the main question: How does an online buy-sell marketplace app like Letgo generate revenue?

Such platforms make money through a variety of monetization strategies. Let’s take a closer look at some of the key methods that the Letgo clone app used to generate income: 

Ad Base Model

The ad-based model proved to be a great success for Letgo in a short period, helping the platform attract a larger number of users. 

Online marketplace platforms offer numerous advantages to advertisers, making them gravitate toward such platforms. Capitalizing on this opportunity, Letgo implemented an ad-based model. 

In this model, a classified app like Letgo displays a variety of banner ads to its users. Whenever these advertisements pique user interest and prompt interaction, the Letgo-like platform generates revenue.

The more users interact with these banner ads, the higher the revenue earned by the Letgo-like app. One of the key reasons this approach works well is that users typically enjoy free services.

Since they don’t have to pay anything to access these ads, it doesn’t deter them from using the platform. This allows Letgo-like platforms to strike a balance between generating revenue through ads and retaining its user base. 

A Freemium Model

Letgo, an online buy-sell marketplace, deploys the freemium model to address the needs of product owners aiming to amplify their listing visibility.

This model offers a feature called “bump up” and featured listing. With the “bump up” feature, users can have their products listed at the top positions for a continuous period of 7 days. 

Additionally, product owners have the option to attract users by offering sales promotions.

To avail of these premium features, an app like Letgo charges product owners a fee that varies depending on the product, ranging from $0.99 to $3.99. 

Many users find this feature appealing as it allows them to showcase their products more effectively and securely. 

As a result, the Letgo-like app generates revenue from the freemium model, where users can enjoy the basic services for free but have the option to pay for additional enhancements to improve their product listings’ visibility and attractiveness. 

Subscription Plans of App Like Letgo

Online buy-sell marketplace app like Letgo offers two subscription plans for its users: 

Super Boost Mode of apps like Letgo

Opting for the Super Boost Mode guarantees the automatic featuring of one of the user’s products on the platform.

Letgo’s system assesses marketplace product data and chooses the most likely-to-sell item to showcase in the featured list. This way users can increase the visibility of their products, leading to more potential buyers.

Letgo Pro Plan

The Letgo Pro Plan is specifically designed for car dealers, aiming to provide them with more leads and potential customers. 

There are three pricing options for this plan:

  • $99 per month for 30 vehicles
  • $399 per month for 70 vehicles
  • $599 per month for 150 vehicles

Additionally, this plan includes a 30-day free trial period, allowing car dealers to experience its benefits before committing to the subscription. 

In-App Purchases

A Letgo-like app generates income for your classified business through in-app purchases instead of relying on app downloads or direct sales. This approach allows users to enhance the visibility of their listings and sell their products more quickly. 

For instance, users have the option to purchase a ‘feature’ for their listings. This feature places their listing at the top of other users’ feeds and distinguishes it with a unique ‘Featured’ ribbon. 

It also adds a convenient button that enables potential buyers to contact the sellers with just one tap. 

Sellers have the flexibility to choose to feature their product listings for:

  • 24 hours
  • 3 days (or) 
  • 7 days

based on their preferences and needs. 

The main function of the Letgo-like app includes buying and selling and remains free, and users have the option to enhance their experience by paying for these special features. 

This monetization method is an intelligent tactic to encourage extensive acquisition of the app and increase brand awareness, as users are more willing to try out something that is initially free. 

Transaction Fees Charged By App Like Letgo

Transaction fees are a common revenue-generating approach used by every online buy-sell marketplace. 

In this method, a fee is charged to buyers to ensure a seamless exchange of products and services on the platform. This fee is known as the Transaction fee. 

There are two major ways to carry out transaction fees. One method is to set a fixed amount as the transaction fee for each transaction. 

Another method is to determine a specific percentage that will be retained from the total exchange amount for each transaction. 

By applying transaction fees, online marketplace app like Letgo generate revenue while offering a convenient and secure environment for buyers and sellers to conduct their transactions smoothly. 


Commission fees are a standard and fundamental method used by most marketplaces, where sellers are charged fees on each transaction they make. This fee is often referred to as a commission. 

The commission is typically a percentage of the total sale amount, and it is charged to the sellers. During their registration process, sellers have the opportunity to negotiate and agree upon the specific commission percentage they will be charged on their sales. 

This approach ensures that a marketplace app like Letgo earns a significant amount of revenue from all sellers in the form of commissions, which helps sustain the platform and its operations. 

Final Thoughts

The Letgo Clone app has perfected the art of generating revenue through various innovative channels outlined in this blog. 

From ad-based and freemium models to transaction fees and commissions, these apps employ a well-rounded approach to sustain their operations while offering a user-friendly experience. 

By capitalizing on the willingness of users to pay for enhanced features and services, Letgo-like apps have managed to establish themselves as key players in the eCommerce industry.