PR#5 Monitization.
Charging either side will put a terrible friction to entry. Infect they should subsidising their participation. Charge should be lavied on deal completion, not at the time listing.
They can also offer post-mortem to discover why they lost the deal.
VALUE CREATION AND CHALLANGE OF MONITIZING.
Charging inhibit frequency participation. Charging for production reduce production and consumption reduce consumption.
The razor-blade and freemium strategy[dropbox].
The four kind of excess value provided by a platform.
- for consumer, access to the value created on the platform.
- for producer, access to the community market.
- for consumer and producer, tools and service that facsitilate the interaction.
- for both consumer and producer, access to the curation mechanism.
NUMBER ARE NOT ENOUGH, VALUE IN NETWORK EFFECTS.
Zevent millions of customers, no way to monitize. Meet up did monitze and upscale quality in one stroke.
WAYS TO MONITIZE :
1. charging a transcation fee - in all 4 ways of value, many case, this involve an exchange of money. You can charge percentage or fixed fee. a transction fees there. Uber.
The more persistent challange is to capture the transaction on the platform. Groupon does it by standardising the posting and hiding the detail while airbnb by rating system. In other case platform must extend its role as an interaction fascitilator to more value-creating activities. Upwork. Per minute call.
2. Charging for access - charging the producer for access to a community who joined platform not to interact with producer. Dribble job board. Advertising but enhancing the value of system.
3. Charge for enhance access - like google AdWords. You can use seo but pay for adword. Although these listing looks different. Lowering barrier like on a dating site. User who pay additional cost allowed access additional information.
4. Charging for enhanced curation - access for gauranteed quality. Babysitting filtering model.
WHOM SHOULD YOU CHARGE -
- Charging all users - typically pipeline bussiness. Country clubs.
- Charging one subsidising|incentive|free other - the ladies night.
- User full pay, subsidising stars - super users whose presence attract many users. Target on mall. EA.
- Charging some full while subsidising who are price sensitive. Rental or owner charge.
FROM FREE TO FEE - create new value, don’t charge for already free stuff and consider monitization strategy from the biggining.