Last week, my post on “Marketplace dynamics: buyer mindshare is key to building a moat” generated good discussion about the best strategies to disrupt existing marketplaces and get past the incumbent’s moat. It’s certainly an important topic to any founder or entrepreneur looking to break into an existing market. The…
Most marketplaces start off by providing a unique supply of products/services. Demand follows supply, and so the flywheel of supply and demand begins. However, as a marketplace gains popularity, its supply inevitably becomes less and less unique. I know this firsthand. At AbeBooks, our booksellers initially listed only with us,…
Online marketplaces have made it easier than ever for people to buy and sell things. But the human element has been missing with the anonymity of Craigslist and eBay. That’s why I’m happy to announce an investment we did two years ago when we participated in the seed round of VarageSale.…
The Freemium Model, where a vendor offers both a free and paid version of the product, has become the de facto business model for many SaaS companies. Freemium makes general usage free, while monetizing the heaviest users through premium features. This model has proven to work well for consumer apps…
When it comes to market opportunities, you can either build a better product in an existing market, or create a brand new market altogether. In the first case where the product category and market are mostly defined, the playbook is relatively straightforward. Potential customers already know they have a need…
