Google has archived the Usenet database (even all those insane alt.books.nancy-drew posts live on), so we can take a trip back through time and see how eBay rose to prominence. The founder, Pierre Omidyar, used the Usenet groups to spread the word. We can also see that eBay was not known as eBay.
In order to find the old word-of-mouth advertising, I ran an advanced search restricted to the second half of 1995 in order to locate Pierre's messages shortly after eBay's creation.
AUCTIONWEB: Interactive Web Auction
The above message was posted on September 13, 1995. The URL is eBay.com/aw, but notice that the site is called "Auction Web." I remember it by that name. We did not call it "eBay." I also recall that the main URL, eBay.com, was a portal that linked to the auction part and then to Pierre's other business.
Here is one from someone else on September 12, 1995.
Auction Web
Here's another:
AUCTION: Pickett Slide Rule
Everyone called it "Auction Web." Back in my first few years on eBay, I printed out copies of all of the auctions that I bid on or won. Here is a scan of one of them.

Look how the page does not say eBay anywhere, and the name at the top is Auction Web.
In the early days, the internet was very small, and "Auction Web" did not have to run television ads. We found Auction Web fairly easily. The site grew very fast, because it was the only one with auctions. The site which is first is the one which gains the most success.
Yes, eBay did grow by huge amounts once it began advertising on television. However, eBay was already getting huge by the time it advertised, which I believe was around three years after the site's inception.
Some people think that if alternative sites sink large sums of money into advertising then the alternative sites are guaranteed success. Not so. In 1999, Amazon launched Amazon Auctions and spent a lot of money on advertising. I am pretty sure that I recall television ads.
I signed up to sell in the Amazon Auctions, and my auctions closed at higher prices than similar ones did on eBay at that time—at least during the time that Amazon advertised. It was great: Amazon's auctions had lots of buyers because of the ads. The problem is that once the ads ended, the buyers left, and nothing sold. Amazon Auctions no longer exists.
Advertising is very tricky and must be done at the right time. Upillar.com did some high dollar advertising recently. Ever heard of it? Probably not, unless you heard the same ads that I did. For a couple of days earlier this year, Upillar had a well-known radio talk show host advertise the site. Let's see how that worked out.

Upillar had a big jump in traffic, and then the traffic has now fallen almost as low as the previous level. That must have been a bunch of money wasted. Let's compare this to Bonanzle's traffic over the same time period.
Upillar's peak traffic at the beginning of this year solely due to advertising is where Bonanzle was at in early 2009 without advertising. Bonanzle has continued to grow, without advertising. Yes, Bonanzle needs to advertise, but the owners are so far playing it safe by not squandering large sums of money to no purpose. Once Bonanzle reaches a certain level—whatever that might be—then advertising will pay off big time. I think the magic number is 500,000 users. Bonanzle is currently approaching 300,000 users.Alternative sites are better off building a strong foundation than in wasting large amounts of money in advertising. Advertising is important, but the money should not be wasted. People who need to sell in order to survive are better off staying on eBay where the traffic is higher. People like me who have a primary source of income not connected to selling online will do fine on the alternative sites.
As I have already reported, I am now as successful on Bonanzle as I once was on eBay. If I were selling the same amount on eBay that I am selling on Bonanzle, I would qualify for eBay's power seller program. This was not the case last year. I had quite a few slow months on Bonanzle, but I was able to let my items set in my booth until the traffic finally increased enough for me to get sales.




