You can read about Zaarly, which was a 2-sided reverse Craigslist, and their struggles with pricing and the ultimate impact it had on their decision to change to a storefront only tool.
A better read is "If You Think 10% Is A Good Transaction Fee For Your Marketplace, Then It Will Struggle" by Sunil Rajaraman
* http://techcrunch.com/2013/03/16/marketplaces-businesses-are-tough-to-build/
"it would be to start your transaction fees higher than 10 percent. I understand that companies start here to deter competition and provide a better deal for suppliers. But imagine having to build a business that completes $1 billion in annual transactions within five years in order to build a $100 million top-line business. Start much higher than 10 percent. You can move down eventually, but you cannot move up"
And Bill Gurley's "All Markets are not created equal - 10 factors to consider when evaluating marketplaces"
Pricing is key to proving your revenue model.
Answered 11 years ago
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