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Marketplaces: Can marketplaces make money on low transaction volumes or do they always (or typically) rely on scale?
DF
DF
David Favor, Fractional CTO answered:

Math is your friend.

Start with your target monthly income.

Then determine if you'd like a small number of clients, selling high ticket items... or... large number of clients, selling low ticket items.

How you generate your income is purely a personal preference. Your preference will determine which model you design your business around.

There are many examples of both models.

Tip: The small client base + high ticket items... very rarely will people share how they do this.

All my businesses follow the small client base + high ticket item model.

In fact, most of the people I work with use this model.

Many of us have no front facing Websites, so business only comes by referral.

For example, speaking in a private mastermind where people pay $25K for a ticket. This tells a speaker, people in the room have money to burn, so this is a typical selling venue for the small client base + high ticket item model.

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