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MenuHave there been any buyer-centric, bounty-based services that worked?
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Taskrabbit and oDesk.
Though over time the most common requests are usually standardized into products to reduce complexity for the buyer. For most buyers the open ended nature of a bounty system is intimidating.
Buyer Centric on it's own may work if the value proposition is strong e.g. Odesk, elance , every Job board under the sun (in some ways), etc.
Bounty based though is intimidating because of the process of defining rates is arbitrary, in a non f2f interaction it's much easier to have a pre-defined set of rules to engage in.
But there is a classic problem of chicken and the egg problem in a buyer-centric marketplace and if one does not think it through, you may be in for a very long haul.
A big (maybe biggest) reason why buyer initiated bounty markets don't work is that the buyer is shouldering the initial cost and risk. They have to take the effort to *maybe* get a result, when they're the one trying to spend money and want to be as lazy as possible.
In contrast, if they go to a seller-driven market ("I will sell this for $50") then they know those opportunities are ready for their taking.
The markets where this works are the ones where the demand-supply balance is so wonky and/or so liquid that a buyer is sure to get responses from sellers. Examples would be oDesk/elance/99 Designs, where people post "I want to pay $100 for xyz."
You could count the stock markets too if you include bid-ask systems.
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Your pricing model should hinge on the fact that the perceived value of services should outweigh the cost associated with it. You can consider looking at online marketplaces like Craiglist, Kijiji, Airbnb, etc to understand various types of business models. However, the approach shouldn't be based on what others are doing. Rather, you should understand your niche, values associated with the niche, and adopt appropriate pricing model. Invest your time in designing the business model for your startup, followed with reviewing it vis-a-vis other models. Need help with business model? Feel free to reach out.SB
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How important is it for a marketplace startup to drive enough demand (customers) for your supply (sellers) to make a full time living off of it?
It's very important. (first, read this article by Josh Breinlinger - http://acrowdedspace.com/post/47647912203/a-critical-but-ignored-metric-for-marketplaces) The way you achieve success in a marketplace is by driving liquidity for both your supply & demand. Demand-side Liquidity = When users come to your marketplace, they can achieve their goals. Supply-side Liquidity = When supply comes to your marketplace they can achieve their goals... which are almost always to make money. If you're making a large amount of your supply-side users a full-time income, then you're helping them achieve liquidity. Now it's not so black and white and it doesn't always have to be a "full-time income." It depends what their goals are. E.g., 1) At Airbnb, renters aren't looking to quit their day jobs and become landlords full-time... they're just look to earn a substantial amount of income to offset their rent, mortgage, etc. So in this case, I would probably goal on # of renters that earn >$500 / month... and (in the first 1-5 years) try to grow this number by 10-20% MoM... and maybe by just 5% once you're in the mid-high tens of millions in yearly revenue. 2) At Kickstarter, the goal of the supply-side is to get their project successfully funded. They don't care if the project creator is "full-time"... they just want to make sure they meet their funding goal. This is why they talk about their 44% project success rate all the time - http://www.kickstarter.com/help/stats 3) At Udemy, our instructors want a substantial amount of their income to be driven from their Udemy course earnings... so we look at how many instructors are earning >$2k / month.DT
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Does odd pricing turn you off (e.g., $29 vs $30)?
For me personally, no. However, what you really need is a larger data set. Gumroad just did a post on prices ending in "9": http://blog.gumroad.com/post/64417917582/a-penny-saved-psychological-pricing 37signals started with prices that ended in 9: http://37signals.com/svn/posts/1287-ask-37signals-how-did-you-come-up-with-pricing-for-your-products ... but they later did research and found it didn't matter (for them). The answer for YOU will likely be to test these things for yourself on your SaaS app.JJ
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