Question
There's so many different examples from Airbnb (12% host, 3% to renter), Uber (~15% to driver) to Craigslist (freemium w/ paid placement + posting) for pricing a marketplace. Is there a framework to follow when thinking through this model? Is there different pricing sensitivities per marketplace type (heavily curated vs. more open)?
Answer
First you need to calculate your costs.
Then estimate the number of transactions per month
Then estimate your cost and margin per transaction
Identify who benefits the most and charge them 66% of the number you need and charge 34% to the other party.
Monitor and test and be willing to change percentages based on what works.
