How Most Two-Sided Marketplaces Fail Their Vendors
“Most 2SMs fail because the best vendors don’t need new customers.”
“You know how you can recognize the top tier of vendors in any traditional service industry? They don’t advertise. They don’t need to.
It doesn’t matter if the provider is an accountant, a hairstylist, a coder, an auto mechanic, or whatever. A great service provider rarely has spare cycles for new customers, and if they do, there’s always a waiting list of new customers who are more than willing to pay full price.”
“There’s only one way to escape the gravity of the 2SM death spiral. The marketplace has to offer, transact, and deliver the traditional service in a new and innovative way.”