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MenuI am building a marketplace. How can I make this attractive to other members while my presence grows online?
Planning to build MVP and leverage landing pages & explainer videos to drive adoption. However, once they come to the platform, won't it look disengaging since there aren't any members already on our platform?
Answers
Hi:
Sounds like you have a compelling idea, but I’m wondering about the validation work you’ve done?
Have you talked to people in the market segment you’re targeting and confirmed that there’s a gap that needs filling? Confirmed that current alternatives aren’t doing the job to their satisfaction?
Once you’ve done that, for your initial MVP, do a very basic one (I’ve talked to people who did one on PowerPoint) and take it out and show it to people in your community. Ask them what they think of it, what’s good, what’s bad and what’s needed. Then, ask them to be part of the founding member group — with some modest incentive.
Then, do the same with your beta — ask real people to check it out and give you feedback — and loop them in as founding members.
Then, once you release to the real world, you have a collection of founding members who can reflect interest and validation of your idea.
If you wish to discuss, send me a PM through Clarity for 15 free minutes.
Cheers,
Kerby
The right question you need to answer is "whether your explainer videos is solving any particular subject in details." The last phase of the video should talk about lessons learnt.
Trust yourself if your explainer videos is solving the purpose, audience will view and review as they will be intrigued with the data points you share.
I'd think about this from two angles...
1) Who are the people you can get to start using the platform IMMEDIATELY? Think your friends, network from college, or even LinkedIn connections. "Prime the pump" with people you know at first, to help get the network growing.
2) The point of a MVP is to quickly test a product idea, and iterate until you have a compelling product. I have a friend who runs multiple 7-figure businesses, and he says that he always looks for a "wow" reaction when he shows off a product — even a MVP, if it's just the concept of what it can accomplish. Remember you don't want to build more than you need to at first. A good product adapts to what gives the most results to your users.
Hope this helps! If you need any additional help, feel free to book a call. I recently grew a MVP to six-figures ARR, so can share the things we tried.
Solving the chicken and egg problem of a two-sided marketplace is among one of the hardest startup challenges. I have had the unfortunate experience of solving this multiple times. Here are my top tips:
1. Validate that your solution is needed. Talk to potential customers on both sides and get confirmation that this is a problem that both sides would pay to solve.
2. Figure out which side of the market needs you the most. Hopefully, your solution is a pain killer for both sides of your market but one side should be dying for it and easier to secure.
3. Get scrappy and do things that don't scale in order to secure these first initial customers. Find them first hand, email them cold, go to the home office in person, whatever you need to do to get a commitment from 1+ people that they will move forward if you come through on the demand or supply side they need.
4. Listen to what they tell you they need. Do not try to sell them something else. To the extent that it would not be a distraction, fulfill what people are asking for. Learn what they need instead of assuming you know.
5. Only secure the customers you feel confident you can deliver on. You don't want to spend $1k advertising to one side of the market, get a bunch of signups, and have nothing to offer them. Stay lean, get your first customer, meet their needs, then your second, meet their needs, then your third. Early on, you're trying to learn and establish a customer base and solid reputation.
6. Relentlessly work to deliver what you said you would. Go to the other side of the market with good demand or supply in hand and make things happen. Be a matchmaker. Do things that don't scale. Later you will figure out how to grow and streamline things.
7. As you start to achieve success but are probably limited in resources, switch your focus back and forth to keep the balance between supply and demand relatively in sync. You never want to grow one side of the marketplace significantly faster than the other or you just end up with both sides not getting any value.
There is more to building a two-sided marketplace than this but it is often very specific to the business. This truly is one of the harder startup problems to solve. If you need help, please feel free to reach out.
Related Questions
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When creating a marketplace, does it make more sense to focus on stimulating demand first or supply?
Focus on the more difficult side of the marketplace. For instance, if you think it'll be easier to get suppliers, then focus first on getting buyers - always be working on your toughest problem (aka your biggest risk). You'll find some great blogging on Marketplace and Platform topics here http://platformed.info (read the ebook too!)CM
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What is the best pricing (business model) to apply to a marketplace?
I like to separate your question into 2 sub-questions: #1 How do we determine which side to charge? #2 How much is the right amount to charge? On #1, my answer is that you can charge the side(s) for whom you add the most value. In your examples, Uber really solves a big problem for drivers, it's that they sit idle for a good part of the day, so are willing to pay a lot for new leads. (their alternative is no work) Consumers are charged more for the convenience of a private car but they are probably not so much willing to pay more for a taxi, even if they can hail one from their phones. For AirBnB, it's a mix, it's a way for landlords to monetize idle capacity which they are willing to pay for, but it's also a way for a renter to pay less than they would normally pay for a hotel. On #2 (how much), I like to triangulate a number of factors: - What's the maximum amount I can charge one side, while still being a good deal for them. - How much do I need to charge so that I can become profitable? (the economics are quite different if you charge 3% vs. 12%) - What are comparable services charging for substitutes/competitive offerings? I will just add that there is no formulaic way to determine pricing strategies (curated vs. open), and it's a lot more about what's the comparable and what the value delivered is. That's how I approached the question while deciding the business model at ProBueno.com (my startup)MR
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Broad niche or Targeted niche which way to go?
I always suggest going "uncomfortably narrow" initially so that you can really dial in the user experience and build liquidity first. Going broad will be tougher as there's too much noise to signal. Also, it's best to fake the supply side initially of you can to improve the buyers side first, then figure out supply & quality afterwards if customers are buying and you've proven out a demand strategy that will work.DM
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Are there any techniques when selling door to door, specifically a B2B model?
Im sure you'll will find many diff approaches but overall your main goal, once you contact, is to always be accessible, friendly and build relationships. Even if your relationships are thin, they are better quality leads for business than you simply walking into a business pitching your product. When pitching your product: Always focus in value, talk to your soon to be clients as if you deal with the issues first hand and this is how you solve them... Don't discuss pricing unless asked. Offer any help or guidance in selecting services even from the competition if they want.. Sell yourself as a rep from a company that is paid to help not sell... This approach works wonders if you can pull it off.. If you have less time during intros or pitching local retail shops you have to be more direct but still aim for a relationship than a quick sale before you move on next door. Learn a bit about their business like busiest hours, popular item or service...after your intro simply offer them more time when they are less busy with clientele to come back to talk about fuckng a certain issue (with a product you represent) :) Hope it helps a bit.HV
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What's the best way to build a MVP web app that handles order management, purchasing, invoicing, supplier management and inventory?
The best way to build an MVP for any SaaS product is to create a landing page that looks like a real product. Here's an example of one I built. http://www.happiily.com In this case, it advertises the primary features of the product and invites people to sign-up. When they do, they are asked for information which qualifies the person and then sends me an email. I built this quickly and very inexpensively and started getting inbound leads from it shortly thereafter. I got on the phone with each person who signed-up and explained the features I wanted to build and was able to do a lot of customer learning based on that. Happy to talk to you in a call if you'd like to talk more about customer development with SaaS products.TW
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