added by sari · updated 9mo ago
The Marketplace Monetization Map: Complexity and Asymmetry
- Marketplace monetization depends on two factors — Transaction complexity and the asymmetry in value to the demand and supply sides
from The Marketplace Monetization Map: Complexity and Asymmetry by Sameer Singh
sari added 3y ago
- Unlike the other monetization models I have explained so far, a complementary product does not generate revenue from access to or interactions on the marketplace. Instead, it involves selling a standalone product to enhance the marketplace’s value proposition.
from The Marketplace Monetization Map: Complexity and Asymmetry by Sameer Singh
sari added 3y ago
- Docplanner sells a SaaS product to doctors to help them digitize patient records and scheduling. This approach helped it attract a critical mass of doctors (the more valuable side) and allow patients to book appointments on its healthcare marketplace. OpenTable, Treatwell, and Lantum also monetize similar complementary products.
from The Marketplace Monetization Map: Complexity and Asymmetry by Sameer Singh
sari added 3y ago
- In addition, a paywall creates barriers to entry (and liquidity) on the marketplace. As a result, it is best used when having sufficient demand and supply (liquidity) does not automatically unlock transactions, i.e. marketplaces with very high transaction complexity. In other words, paywalls need both high complexity and high asymmetry.
from The Marketplace Monetization Map: Complexity and Asymmetry by Sameer Singh
sari added 3y ago
- Asymmetry in value between demand and supply: Typically, the value created by a marketplace is asymmetrically distributed across participants. In other words, marketplaces are often more valuable for one type of participant— either the supply or demand side. However, the level of asymmetry is not consistent across marketplaces. For example, supply ... See more
from The Marketplace Monetization Map: Complexity and Asymmetry by Sameer Singh
sari added 3y ago
- Uber is the quintessential example of a marketplace with low transaction complexity and asymmetry. Matching demand and supply is simply a function of availability and pickup time — commissions are the obvious fit here. On the other hand, marketplaces like Classpass and Scoutbee avoid commissions entirely.
from The Marketplace Monetization Map: Complexity and Asymmetry by Sameer Singh
sari added 3y ago
- Commissions (or interaction taxes) are viewed as the “obvious” way to monetize a marketplace.
from The Marketplace Monetization Map: Complexity and Asymmetry by Sameer Singh
sari added 3y ago
- Derived products are rarely seen in marketplaces because this data is better used internally to improve matching on commission-based marketplaces or lead generation in paywalled marketplaces. In rare cases, marketplaces targeting complex and opaque markets, like Leaflink, can provide aggregated and anonymized market data as a part of a paid tier.
from The Marketplace Monetization Map: Complexity and Asymmetry by Sameer Singh
sari added 3y ago
- Transaction complexity: This is a measure of how complex it is for the demand and supply sides to find a “match” on the marketplace and then complete a transaction. This can depend on a range of factors including the nature of supply and the density of supply by region or category. For example, both Upwork and Preply are labor marketplaces with dif... See more
from The Marketplace Monetization Map: Complexity and Asymmetry by Sameer Singh
sari added 3y ago