Nir And Far: Business, Behaviour and the Brain Marketplaces & The Curse of the Network Effect-Nir&Far
Oct 7, 2019
Marketplace businesses are all about connecting buyers and sellers, leading to rapid growth and high investor interest. Insights from a former CEO reveal the hidden challenges of achieving success in this competitive space. He shares the struggles of monetizing user growth and the complexities of managing consumer expectations. The discussion includes notable companies like eBay, Uber, and Airbnb, showcasing the impact of the network effect. Get ready for an engaging exploration of what makes marketplaces tick!
AI Snips
Chapters
Transcript
Episode notes
Zvents' Monetization Challenge
- Ethan Stock, former CEO of Zvents, shared his experience with marketplace businesses and the network effect.
- Despite Zvents' success in connecting event organizers and attendees, monetizing the platform proved challenging.
Expectation of Completeness
- The "expectation of completeness" in marketplace businesses can hinder monetization.
- Users expect comprehensive listings, making it difficult to charge organizers for essential listings.
Google's Approach
- Google, despite giving away much of its value, thrives due to its massive market.
- Google's value comes from organizing all information, extracting value through sponsored placements within a broader market.