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  • Writer's pictureSameer Singh

The Marketplace Monetization Map: Complexity and Asymmetry

Like other network effect-based businesses, marketplaces need to ensure that monetization does not interfere with their core value proposition, i.e. connections between demand and supply culminating in transactions. The nature of these connections depends on two factors — transaction complexity and the degree of asymmetry between demand and supply. Based on these constraints, marketplaces can choose between 5 out of the 6 monetization models I identified in my last post. The animation below summarizes how complexity and asymmetry affect the choice between them.

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