Questions

There's so many different examples from Airbnb (12% host, 3% to renter), Uber (~15% to driver) to Craigslist (freemium w/ paid placement + posting) for pricing a marketplace. Is there a framework to follow when thinking through this model? Is there different pricing sensitivities per marketplace type (heavily curated vs. more open)?

I have been working on a wedding planners market place. It has been fun trying out various combinations. Have a combination of free + paid on both sides

User side:

1. Basic service - make it free to drive the user base. A market place is attractive only when you have large user base

2. Value added services - Have a menu and charge accordingly.

3. Combo offers - always link the offers to the number of transactions with an expiry date. This will help you drive volumes

Supplier side:

1. Base service - No charge to supplier

2. Value added services - charge single digit , may be 2% or 3% per transactions

3. Combo offers - charge up to 7% or 8%

Most importantly, start having elements which will reduce bounce rate, if it is web based offering.
It would be better if you clearly define the service and the target market so that the various value streams can be mapped and the overall offerings can be worked out.
Hope this helps.
Best regards
Sridhar


Answered 7 years ago

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