Find the right business model for your marketplace

Category: Entertainment

Presentation Description

Many entrepreneurs and startups are very enthusiastic about the rental marketplace idea since millions of users are using the marketplace as a daily part of their life. Also, billions of dollars are being transacted across the world and a huge sum of money is earned as commission fees by the marketplace owners. It triggered budding entrepreneurs to jump into this sharing economy stream. For more info visit:


Presentation Transcript

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Find the right business model for your Marketplace

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Different type of business models available in the marketplace are ● Commission-based ● Subscription – fee ● Listing fee ● Lead generation fee ● Freemium services

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Commission-Based ● Commission based approach help owners to capture money and start gaining profit even at a very low level of activity. ● There are two types of commission-based fees ➢ fixed fees. ➢ variable fees.

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Fixed Fees:The fixed fee is a set of percentages charged by the marketplace owners from each seller and buyer. Variable Fees:The variable fees are adjusting according to the total amount of bill.

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Subscription – Fee ● A subscription business model is the one in which customers pay a fixed amount of money on fixed time intervals. ● This method allows consumers to subscribe to the services for a monthly or yearly basis and earn a periodic subscription fee. ● One of the main advantages of the subscription model is steady monthly revenue and gives a recurring revenue and budget-friendly offers to the customers

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Listing Fee ● The vendors have to pay the fees to list their offerings in the rental marketplace and the fees can be charged on a regular or premium basis. ● Another method is to charge listing fees for promoted ads and other such features. ● The listed fee strategy offers more chances for marketplace providers to earn high profits and guarantee for lots of visibility.

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Lead generation fee ● This method gives a better value proposition than the listing method because the provider has to pay only when they get in touch with the potential customer. ● This is the way the marketplace gets revenue by charging the seller to get in contact with the customer.

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Freemium services ● In any freemium services the marketplace offers for free and charges the user for upgrades. ● There are two ways to implement the freemium services either giving free charge and charge extra for upgrades or giving free as well as paid services. ● To make a freemium model work better the model should look perfect for generating revenue with a high conversion rate.

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