I have co-founded Vinted, a C2C pre-loved fashion marketplace. Now I am working on Qoorio, which is essentially a marketplace for knowledge. I am happy to see your marketplace business and give you my independent feedback on what’s good and bad in it.
About meI am co-founder & CEO of Qoorio, the knowledge social network. Share your insights, learn from others, and grow your knowledge.
I am also co-founder & CEO of Vieta, a chat for doers, and Vieta is my primary place for work coordination.
Prior to that I co-founded Vinted. Vinted is a marketplace to sell and buy preloved fashion. Vinted has grown to multiple markets and became the first Lithuanian unicorn.
➡️ More about what you can get here from me: https://www.qoorio.app/o/jjanauskas/i/qhvayf-14k
Three Types of Marketplace Shifts: Changing Without Breaking The Marketplace
“Making decisions about shifts in value, control, or risk is hard. It’s scary. Perhaps the shift will offset the special equilibrium of trust and value that exists in the marketplace...mechanics you may privately confess not to even fully understand.
And it’s emotional. While that’s true for any change or big decision at any company, it’s doubly true when the company is serving multiple customers at once. In a marketplace business, different parts of the company will, by design, see themselves as allied with one of the marketplace parties more than the others. Sales will advocate for the supply side. Marketing may advocate for the demand side. Product teams, depending on their focus area, will have a bias for their segment or constituency. And Finance, Legal and Policy teams will often lean towards more control, more value, and less risk for the business. This type of partisanship shouldn’t be disappointing to you. It’s ultimately a good thing! It's checks and balances. But it can result in some charged debates when marketplace shifts are required.”
Full article: https://www.giladhorev.com/posts/three-types-of-marketplace-shifts-changing-without-breaking-the-marketplace
The Network Effects Bible
Another great Wednesday night material I recommend to read to anyone who is creating a marketplace or a network type business. Below are my key take aways from the read.
“Network effects have been responsible for 70% of all the value created in technology since 1994 . Founders who deeply understand how they work will be better positioned to build category-defining companies.
1. Why Network Effects Are Important
Network effects are mechanisms in a product and business where every new user makes the product/service/experience more valuable to every other user.
2. How Networks Work
The critical mass of a network refers to the point at which the value produced by the network exceeds the value of the product itself and of competing products. This can happen at different times depending on the type of a network.
Most products with network effects must ultimately reach critical mass in order to fully take advantage of the defensibility provided by their network effects. Before the size of the network reaches critical mass, the product remains quite vulnerable and may not have much value to users. For such products, the challenge is often to build enough initial value to incentivize early adopters to start using the product even before the network effects value has kicked in.
3. Properties of Networks
Many network effect businesses require users to create a profile that’s visible to other nodes in the network. Networks with profiles tied to a node’s real identity, like your real personal name or real company name, are typically more effective at building network effects than networks with pseudonymous profiles (e.g. user-generated handles like “Tiger123”).
4. Building and Maintaining Network Effects
We don’t suggest building single-player-only businesses. They tend to grow linearly and get dragged down by competition.
5. Related Concepts”
Read the full article on NFX blog: https://www.nfx.com/post/network-effects-bible/
As a serial entrepreneur and investor, I have seen thousands business ideas, some of them turned out to a very successful companies, others - failed. I am happy to bounce ideas with you and give you my honest and independent feedback.
Buying Groups -
Typically, a buying group attracts membership from independent retailers, cooperative groups and even branded chains. In South Africa, a new(ish) act outlaws discounting & rebates based on sheer volume. Discounts (incl. by any other name) need to be provable that they're derivded from efficiencies.
I can help you with the following
Sales 101 & where to start
staying authentic, finding your own style
books & recommended resources for further reading
Listen to your business idea for free
I heard hundreds of startup ideas and worked on some myself.
Since there are no events currently I miss discussing new ideas, providing feedback and thinking together..
I do ot for fun and for free over a virtual coffee.