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  • I have had the honor of being chosen as a Wizpert, click here to link with me on their site..
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  • The Internet, Your Ex and the Legal System
  • Why Do You Really Want to Change Your Name?
  • How Do I Know When I am Ready to Date

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    Lel4nd Dating can be overwhelming. There is quite a bit of advice about it but not much about preparing yourself to date. For some, the purpose of dating is to discover if the person has the potential for becoming a long-term partner. This is not about getting a marriage proposal on the first date; rather it is an acknowledgement that there is a desire for something more. For others, dating has one purpose, to have fun. For the fun seekers, the idea of any commitment longer than one date is too much for them.

    Generally speaking, this is why those interested in just having fun are not good matches for those interested in long-term commitments. If you are dating to find a partner, than wasting your time with those just having fun can be frustrating. Once you discover that your date is not interested in the same outcome, parting ways on friendly terms is better than stringing out a relationship that will eventually end with resentment.

    If you are interested in a long-term commitment, than deciding what matters to you in a partner is better done before you meet them. This is not a time to decide that your future partner should have blue eyes or black hair because you want kids with that combination; rather this is a time to be selective about what really matters. Fifteen years later appearances change.

    If you fall in love with the appearance of a person and not their intellect, character, or heart, then you will have built the foundation of your marriage on a sink-hole. This is the hardest part of the process, making a list of the qualities that are really important and compliment you in some way. For instance, if you know that you are a spender when it comes to money, then you are better off marrying a saver. If you are coming into the marriage with kids from a previous marriage, then it is essential to have a spouse that loves kids.

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    If you like to watch weird Sci-Fi movies, then it is good to have someone who can enjoy them with you. The list should be long and as specific as possible without too much detail. On the other hand, too specific statements limit your prospects.

    This is about finding a balance. Once you have your list, put your list in the order of priority in your life. A person who is active in the ministry of their church might have at the top of the list a person with similar characteristics. Items such as moral beliefs, value systems, desire for future children, good reputation and employability should be close to the top of the list. The bottom of the list may include appearance preferences, location, or family background. However, you may decide differently then suggested, remember this is about your desires for a mate not about someone else.

    Please do not bring the list on the first date and begin questioning the other person about the items that are important to you. This is a bit on the crazy side and is more likely to scare someone away rather than draw them closer to you. Instead, pick one or two and investigate if your date has the qualities you are looking for in a partner.

    Then work your list a bit at a time. Dating with a purpose in mind and with an understanding of the type of person you are looking for in a partner, makes the process more enjoyable and less frustrating. It also saves you the heartache of spending too much time and investing too much emotional energy with Mr.

    Repairing, restoring, and rebuilding relationships takes time, energy and effort. If you find yourself needing more help during this process, please call our offices at to schedule an appointment.

    Or you can send me a quick email at chammond lifeworksgroup.
    This time we are going to focus on marketplace business models. Marketplace businesses are long-term initiatives. To build a sustainable and successful marketplace, you need to find a marketplace business model that will finance its operations.

    If you are running a non-profit or a hobby project, funding the development and maintenance of the site can be done through donations or from your own pocket.

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    However, in most cases, funding eventually needs to come from the community you are serving—the users of your site. One of the most common reasons why startups fail is that they pick a business model that does not scale to ensure long term sustainability. In this article, we review the different options for marketplace monetization, and give guidance on how to choose the right marketplace business model for your idea.

    Commission The most popular business model for modern marketplaces is to charge a commission from each transaction. When a customer pays a provider, the marketplace facilitates the payment and charges either a percentage or a flat fee. The biggest benefit of this model is that providers are not charged anything before they get some value from the marketplace. This is really attractive for the providers. The best known marketplace platforms—like AirbnbEtsyeBayFiverrTaskRabbit and Uber —all use commissions as their main business model.

    The biggest challenge in getting the commission model to work is to provide enough value for both the customer and the provider. If your users do not get enough value from your platform, they will find a way to circumvent your payment system, and you will not get paid.

    How do you provide this value? Another challenge with the commission model is pricing. How big should the commission be?

    Should it be the same for all users? Should I charge the customer, the provider, or both? Should I first have a lower commission to get people to join my platform, and raise it later on? My recommendation is to use the commission model as your main revenue stream whenever feasible. I anticipate more and more marketplaces adopting this model in the future.

    There are, however, scenarios in which it is not feasible for the marketplace to facilitate payment transaction. In these cases, the commission model does not work.

    When the size of the typical transaction is huge. The marketplace has lots of different types of offerings. It becomes impossible to design a transaction process that provides value for all of those cases.

    Traditional classified ads are a good example of this. The invoicing process is too complex for the marketplace to facilitate it. This is common in business-to-business B2B and some business-to-consumer B2C marketplaces. Money is not exchanged at all in the marketplace. In these cases, you need a different type of business model. With this model, the typical value proposition for providers is that the marketplace helps them find new customers.

    For customers, it helps them save costs or find unique experiences. The membership fee is a good choice if the value you provide is high and a typical user will engage in several transactions, but facilitating a payment is challenging or impossible.

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    Oftentimes, these sites vet all the subscribers in order to guarantee quality matches and create a sense of exclusivity that justifies the fee. In the B2C market, the membership model is common in recruiting.

    For instance, LinkedIn and StackOverflow Careers charge companies a subscription fee to get access to their talent pools.

    The Internet, Your Ex and the Legal System

    With B2C companies, the platform is typically free for customers, but requires a paid subscription for providers. Later on, when they had validated their business plan and had the resources to build an invoicing system, they moved to the commission model—a model that was much more lucrative for them.

    You need to have enough users on your platform to make it valuable for both providers and customers, and a mandatory payment discourages users from signing up. One way to get around this is to offer heavy discounts for early adopters, or even lifting the fee completely to build the initial user base.

    Listing fee Some marketplaces charge a fee from providers when they post new listings. This model is typically used when providers get value based on the number of listings they have on the site, and the potential value per listing is big.

    This model is quite common with classified ads. The value proposition of the website is really simple: Perhaps the most well known example in this category is Craigslist. Generally, posting a new listing to Craigslist is free—this is how they managed to reach critical user mass—but in certain categories namely, job and apartment listings in some cities they charge a fee for each listing.

    It can sometimes be useful to use several business models on the same site. For instance, Etsy is an example of a B2C marketplace that uses the commission model, but also charges a fee to post new listings. By using both the commission model and the listing fee model, Etsy gets revenue from both popular and not so popular items.

    This is the case with Mascusa B2B classifieds site for expensive machinery.

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    This results in the marketplace being able to capture only a relatively small portion of the value going through the site. A sustainable business model that depends solely on listing fees thus requires a very large volume of listings.

    Additionally, since paying a listing fee does not guarantee that the item is sold, the marketplace will have a harder time proving that it provides actual value to its providers.

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    Lead fee Lead fees are somewhere between the listing fee and the commission models. In a typical lead fee model, customers post requests on the site, and providers pay in order to make a bid for these customers. The model gives a better value proposition than the listing fee model: The lead fee model only works if the value of the lead is high.

    For this reason, this model is not common in C2C marketplaces. A typical use case is B2C or B2B services, where each new lead can lead to a long-lasting customer relationship with multiple deals. A recent well-performing example of this model is Thumbtacka B2C marketplace for all kinds of local professional services, from plumbers to guitar teachers.

    However, while Thumbtack has been doing well with the lead fee model so far, their problem is that the providers no longer use Thumbtack with existing customers—instead, they build the relationship outside the platform once they have the lead.

    This is why Thumbtack is currently building invoicing, payment and scheduling tools for professionals. Freemium How can you monetize a marketplace where people share low-value items for free? The Dutch startup Peerby has built a C2C platform where people can borrow things from each other at no cost. The basic experience is free for all the users of the platform. Peerby has decided to monetize by offering premium services. They have two main offerings: The logic behind the freemium model is that the core offering is free, but after you get your users hooked, you offer paid value-adding features.

    The challenge with this model is that these paid services need to provide enough value to be tempting to a good portion of your users. Coming up with a premium service that is interesting for a wide enough audience can be very tricky. Because of this, many platforms use premium services as additional revenue streams.

    For example, Mascus offers premium web page services to its customers to complement its listing fee based business model. Etsy complements its transaction and listing fee based model by offering premium services like direct checkout, listing promotion and shipping labels to its power sellers, and has recently seen strong growth from this revenue stream.

    In some cases, a marketplace can start offering premium services as an add-on, but eventually shift its entire business model to focus on the paid services.

    Vayable started as a pure peer-to-peer marketplace where individual people offer unique experiences to others, but after failing to get enough traction, decided to pivot to build a concierge service for custom vacations. The downside of this approach is that premium services are often be a less scalable option when compared to the pure commission model.

    This is often due to the amount of staff that is required to provide the premium services. Vayable only made the shift because they were not able to get the commission model working well enough. Featured listings and ads Featured listings are a way for providers to buy more visibility for their offerings. If this model is used, listing on the site is typically free, but providers can pay to have their listing be featured on the homepage of the site, or at the top of a certain category.

    Etsy provides featured listings as one of its premium services. This model is relatively close to pure advertising models—ones where you show ads such as Google AdSense to your users. Featured listings and ads are both popular revenue streams for classified ad sites.

    They are often seen on real estate marketplaces like Zillow or free sharing marketplaces like Freecycle. The challenge with these models is that, again, they require a significant amount of users to generate meaningful revenue. If you want to offer the best possible experience for your users, this business model is not your best option.

    Ad-based models work best when you have a really specific niche, and there are commercial providers that are interested in tailoring their offering for that specific audience. They monetize by allowing wedding planners, photographers and other providers of wedding-related services to buy ads on the site. The content of these ads is very relevant for the users of the website, making them more relevant and less annoying. Putting it all together Modern marketplaces employ many different business models.

    This approach is very scalable and oftentimes quite lucrative.

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    The best option for most marketplaces is to 'own the transaction'Click To Tweet However, in some cases, the commission model does not make sense, so alternative models are needed. Trying out multiple business models to find the best option for your concept might be a good idea. In the beginning, you should have only one revenue stream in use at a time to avoid diverting your focus. Eventually, when your site grows, it might make sense to combine several revenue streams to build a marketplace business model that takes into account everything that is happening on your site.

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    3 thoughts on “How to choose the right marketplace business model

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