This is the free version of Trends PRO #0034 — Micro-Marketplaces
General marketplaces lack focus.
Micro-Marketplaces focus on a niche. And build an experience around it.
|Monster.com (All Jobs)||Remote Ok (Remote Jobs)|
|BizBuySell (All Businesses)||MicroAcquire (SaaS Businesses)|
|Freelancer.com (All Freelancers)||Unicorn Factory (NZ Freelancers)|
MicroAcquire aims at SaaS businesses. Displaying recurring revenue, customer acquisition costs and number of customers.
BizBuySell is for all businesses. But food trucks don’t have recurring revenue.
A business that connects buyers and sellers.
A marketplace that focuses on a niche. And designs around it. Leading to a better experience for buyers and sellers.
- Notion Everything — Notion Templates
- Studiotime — Music Studios
- The Quiver — Surfboards
- Modsy — Interior Designers
- MicroAcquire — SaaS Businesses
- Good Dog — Dogs
- PierShare — Boat Docks
- TOOLBX — Construction Supplies
- Stackraft — Remote Engineering Jobs
(📈 Trends Pro) Database of 50+ Micro-Marketplaces
- No-Code will lower the barrier to build marketplaces. Studiotime uses ShareTribe. PierShare uses Bubble. Orapa uses Webflow and Tribe.so. (via Yoroomie and Stan)
- AI will circumvent service supply constraints. MDacne analyzes skin and provides treatment plans. Otter transcribes audio. Sidestepping Teladoc and Rev.
- Solve the chicken-or-egg problem. Here are 19 ways and two more:
- Provide a Service (Slice answers phones for restaurants)
- Piggyback on an Audience (Influencers promote Cameo)
- Build a marketplace with no-code. And focus on the hard part. Code is being commoditized.
- Niche. RubyRide launched in a suburb of Pittsburg. MentorCruise focused on engineering mentors. Even The Everything Store started with books.
- Attract supply with growth tools. See Zestimate and Carculator. Thumbtack made it easy to post to Craigslist and Thumbtack. (via Andrew)
- Scratch your own itch.
- Georgene built Fairygodboss after looking for a job.
- Dominic built MentorCruise after looking for a mentor.
- Andrew built MicroAcquire after looking for a business.
🔑 Key Lessons
- Start small. Micro-marketplaces can lead to more verticals. Likewise, Micro-SaaS and DTC Brands lead to bigger plays.
- Scale changes everything. Most marketplaces are curated at first. Then evolve. Game mechanics help maintain quality at scale.
“Your definition of a marketplace (a business that connects buyers and sellers) is wrong. What about managed marketplaces with inventory risk?
A business that connects demand and supply is also wrong. It includes wholesalers and retailers. 🤷♂️ Embrace imperfection.
“MDacne and Otter’s models aren’t perfect.”
“Every category can’t have it’s own micro-marketplace.”
Maybe not. It’s a battle between the benefits of having everyone in one place (general) and the benefits of specific form factors (micro).
“You didn’t mention frequency, AOV, monogamy, take rates or critical mass.”
Look out for more on marketplaces.
“Micro-Marketplaces? These are vertical marketplaces.”
Sure. But can we admit? Alliteration is fun.
- Who’s building a marketplace? • The tweet behind this report.
- All Things Marketplaces • Fabrice Grinda on SaaS tools, curating and locking in supply.
- Hierarchy of Marketplaces • Sarah Tavel on the levels of marketplaces and what makes them special.
Thanks to Andrew Gazdecki, Jeff Ericson, Vartika Manasvi, Nate Ritter, Dominic Monn, Stan Rymkiewicz, Gali Meiri, T.D. Bryant, Bobby Gilbert and Yoroomie for being great thought partners.
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- 56 Micro-Marketplaces (522% More)
- 5 Predictions (150% More)
- 12 Opportunities (140% More)
- 5 Key Lessons (150% More)
- 10 Summarized Links (233% More)
With Trends Pro you’ll learn:
- (📈 Pro) Which metrics should you track?
- (📈 Pro) Which company locks in supply and demand with one tool?
- (📈 Pro) How to use strategic friction to create balance?
- (📈 Pro) How to sidestep network effects and leapfrog incumbents?
- (📈 Pro) Why will there be more service marketplaces?
- (📈 Pro) How to maintain quality and churn bad supply?
- (📈 Pro) Why will there be more managed marketplaces?
- (📈 Pro) How to use risk reversal to grow your marketplace?
- and a lot more…