Are you building a marketplace? An Uber/Airbnb for X?

kenhui

New member
Customer acquisition is a core challenge for any business, but for marketplaces this is doubly true, because of the chicken-and-egg problem. In order for the marketplace's wheel to start rolling, you must make both sides of the marketplace happy - suppliers won't come if there's no customers and vice versa.

A common approach is to create the supply yourself at the beginning, just to get things started ("fake it till you make it" approach).

If you are currently working or used to work on/for a marketplace - what is/was it for and how do/did you handle the chicken and egg problem?

What were your challenges and how did you overcome them?

Or maybe you couldn't overcome them? Why and how did you decide it may not work after all?
 
@kenhui Sure, I run a couple. My platforms involve marrying sets of people together who are looking for a certain type of work.

It’s quite niche so for my privacy I won’t detail what that niche is, mainly as I’m in bed and can’t be arsed to make a throwaway.

But as a comparison, it’d be like a marketplace for bar owners, barmen/maids, but in a creative niche. It’s people who can offer work, those who need/want that work, and then some additional supplier types around that.

My platforms have a total of 22,000 members and put them as some of the largest in their industry.

The first platform was started a few years back. To get it started, I started off with 1 account type, the worker account (barmen/maid, to continue the example).

I approached around 500 people who were doing that work and offered them a page on the website. Initially, I controlled all the admin of those accounts - it let me understand what people wanted and needed.

I then created another account type, the work supplier (bar owner).

I posted hundreds of offers for work on websites like gumtree, Craigslist etc offering:

“Barmaid available”, “barmen available” etc. To any email I received, I’d wait 24 hours and send them a “oh sorry, this member is not available on this date - but do check out this website for more!”

Around 60% of those I’d email back would end up signing up within 6 hours of receiving the email, and I was getting a good amount of applications.

Over time, it spread through word of mouth.

I now have a second platform in a closely related niche. Think, waitress/waiters. On my platform, around 40% of the members who work in that first niche also have an interest in the second niche - but no platform existed in that niche.

I created a separate platform for that second niche, and created a notice to everyone who had indicted interest in that second niche, on the first platform that this second one existed.

The second one now has more DAU’s than the first one after just a few months.

The plan is to broaden out the amount of websites by niche. Understand what users on each platform are interested in, and then create websites/platforms in that niche.

You might say “well everyone on website 2 is the same as website 1”, but really, that’s not the case. You have some of the same / a bit of cross pollination but the users of the newly opened second niche website tell their friends in that niche, and it grows independently.

My advice is to not “fake it till you make it” - honestly, it’s fairly obvious when a website is full of fake users. Find a way of getting genuine people on the website, even if it’s you controlling every aspect of their account management initially where possible, just to get over that chicken and egg situation.

Hope that helps! Happy to answer any further questions.
 
@sam0097 Membership - the platform has a free and a paid plan. Paid plan means that members can use messaging more as well as a bunch of other benefits.

The website has been monetised from day one.

I’ve trialled advertising so many times, but the issue is that people on my platform aren’t there to be “sold to”, so the revenue versus inconvenience / tackiness of the ads isn’t worth the revenue.
 
@treythan123 Thanks for sharing this info so far. Just curious, did you develop the web end of the platform yourself or did you hire someone? If you did it yourself, do you mind sharing if you used some sort of ready-made product (like WordPress or sharetribe etc) or largely programmed it up yourself? Also, (last question, promise! Lol) roughly how much of an initial investment did you need to launch this initiative, and did you keep your day job in the initial stages? Thanks!
 
@7seals I developed the entire platform myself, it’s not built off of any ready made product.

Over the past year I spent a lot of time working on the system to make it a lot my flexible. So it can be readily deployed into any market where there’s a need to facilitate service provider to service needer communication and networking.

In terms of financial investment, none. If you were to have the same system built by a developer it would cost an absolute fortune, but building it yourself obviously mitigates that cost.

I still have my day job now! The business is largely automated - everything from payments onwards. My work on it is largely administrative and feature planning/building which I fit into my spare time.
My day job is within a skilled area of work so it pays well - so having the business and my day job effectively means double bubble in terms of my income
 
@godsdelight Its more of a classified / one off style work.

You’re idea is good however, and something I’m already investigating adding via Stripe. Stripe allows you to take and send payments + take a cut between 2 or more people.
 
@treythan123 Wow, thank you so much for sharing all this!

You brought up some interesting angles, I need to think about it some more before writing a longer reply, but first I just wanted to thank you for taking the time and sharing your experience and lessons with us.
 
@treythan123 Hello again @Jimmyuk!

Sorry for the delayed response.

Can you please elaborate a bit about how you created the demand? I think I can use a similar method but not sure exactly how to do it.

My marketplace (FitMyTime) is connecting fitness and yoga trainers with students from around the world for online live 1:1 workouts (via Skype etc.). I'm trying to find ways to get my suppliers more customers. Initially I thought that the teachers will advertise themselves but I was wrong. Maybe it's because they are not paying to get listed.

Anyhow - I would appreciate any feedback or advice.

Thank you so much!
 
@kenhui Hi,

People were doing what my platform does via websites they weren’t really built for it - such as gumtree and Craigslist.

Offering a platform that was tailored to their needs is what drove the initial growth - the demand was always there.

Your idea is quite cool, I like it. My girlfriend actually subscribes to a few yoga teachers etc on YouTube - I bet she’s never thought of that 1on1 style thing.

I suspect yours is going to come down much more to actual promotion of your idea. What are you doing in terms of marketing, anything?
 
@treythan123 Hi, thank you for the kind words. I am also using YouTube for yoga, and the frustration of not being able to ask questions and receive feedback was one of the reasons I started this. I also go to a studio but generally I prefer to workout on my schedule and not the studio's.. ;) There were other reasons but that's another story.

I haven't done any paid advertising yet. I do some social media marketing, mainly Instagram. I expected a network effect, but I guess that doesn't always happen by itself.
 
@kenhui I'd suggest using something like the free tier of Hot Jar to get some user feedback.

Create some exit polls to ask why they didn't purchase a class etc, use session recordings to see what people do, set up some funnels to see how far people get in the purchase before dropping out.

I'd also suggest reviewing your hero image - the text is really hard to read. Adding text-shadow: 1px 1px 1px #ffffff; to your H1 and P tag helped a lot. But I'd suggest swapping out the image entirely, and finding an image that compliments your text rather than obsucres it.

Also your request form is quite "scary". Having the payment logos underneath made me think I was going to have to pay immediately. Soften the form a bit and have something like "Check Availability" and sack off the logos. They can come later when someones further down the funnel and more committed to purchasing the class.
 
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