Lenny's Podcast: Product | Growth | Career cover image

Thinking beyond frameworks | Casey Winters (Pinterest, Eventbrite, Airbnb, Tinder, Canva, Reddit, Grubhub)

Lenny's Podcast: Product | Growth | Career

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The Different Types of SaaS Marketplaces

SaaS marketplaces can be categorized into two types. First, there are SaaS businesses that have an existing customer relationship and deal directly with the customer's customers. This makes it easier as there is already brand recognition. On the other hand, there are SaaS tools like Stripe that process transactions in the background without the customer's knowledge. The second element is that the marketplace needs to provide a reason for customers to transact with multiple suppliers. This can be achieved through selection or standardization. Marketplaces that have a wide selection or offer standardized services tend to succeed. Ultimately, a marketplace is defined by its ability to drive demand to supply, and its primary value proposition is bringing extra business to the suppliers.

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