My presentation from the PMM Summit in San Francisco.
Prime is the subscription service that changed online shopping. Prime membership in the US hit 103 million. And Prime users spend 2.3x more than non-prime users. Amazon has bypassed Google and become the starting point for online shopping. It’s a loyalty program like no other.
SaaS is now a well understood business model - hosted software, made available on-demand on a subscription basis. Marketplaces are also a common business model - “exchanges” that connect buyers to seller, and take a percentage of the transaction as their fee. They have the ability to generate network effects, and get stronger over time. … Continue reading SaaS Enabled Marketplaces
Companies are constantly told that growth is all that matters. For start-ups, growth is priority #1. They are advised that the only thing that matters is the speed of growth. According to Paul Graham, a good growth rate during a startups time at YC is 5-7% a week! For marketplace startups, this speed of growth … Continue reading Scaling marketplaces, one market at a time
Marketplaces are appealing for entrepreneurs and investors because - at scale - they are very hard to disrupt. But before your marketplace can get to scale, you need to solve the chicken and egg problem - figuring out who to bring first - buyers or sellers; producers or consumers; supply or demand. That’s why building … Continue reading Solving The Chicken And Egg Problem In Marketplaces