Why (not) to Build A Two-Sided Online Marketplace? | Ywan van Loon

2014-10-26 11:49:31

Two-Sided Online Marketplace are places that bring groups of users together in two-sided networks. The marketplace is platform eventually with additional services that provide infrastructure and rules that facilitate the two groups transactions. It can be taken in all kind of forms.

Why should I read this post?

The post compares 2 articles in which one advises first time entrepreneurs to stay away from Two-Sided Online Marketplaces and on the other side an article that shows the extra value of a Two-Sided Online Marketplace.

Why (not) to Build A Two-Sided Online Marketplace?

  • Marketplaces are very valuable the more users you gain (in contrast to traditional business where it will be harder to gain more users all the time).
  • Marketplaces have a Network Effect after you reach a critical mass after reaching means you will easier gain more users.
  • Chicken and the egg problem. Two-Sided Online Marketplace requires 2 audiences, with which audience to start
  • Double efforts to gain audiences. Sometimes you can say almost double marketing costs

What is the problem explained?

The problem explained is the challenge to build an Two-Sided Online Marketplace, for example as a startup.

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Category: Agile Marketing

Tags: MarketPlace   

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