The Reality of Two-Sided Marketplaces

Recently, I received inquiries from Teaching Startup members regarding two distinct types of two-sided marketplaces (2SMs). Ironically, Teaching Startup itself operates as a 2SM, albeit in a unique way.

I have significant experience in this arena—I founded and sold a 2SM nearly a decade ago, even before the term became mainstream. During the pandemic, I attempted to integrate a marketplace into another startup, which didn’t succeed but paved the way for something better. I’ve also formally advised several 2SM startups, including two at present.

To respond to these questions, I'll share my experiences addressing similar challenges. If another advisor from Teaching Startup takes on these inquiries first, they will provide their insights based on their own experiences, and they, too, will be compensated for their expertise.

However, my main point is that if I were to operate Teaching Startup purely as a 2SM, it wouldn’t thrive. My goal wasn’t to create a 2SM; instead, I’m leveraging elements of one to develop Teaching Startup into an efficient and affordable resource for entrepreneurs seeking quality, experience-based advice.

Why Two-Sided Marketplaces Are Thriving

The evolution of technology often leads to the creation of user-friendly platforms that enable innovative solutions to age-old problems. This has been observed with the rise of the Internet, which gave birth to Facebook, as well as with mobile devices, which led to the app ecosystem. Presently, we see this trend with cryptocurrencies and NFTs, which are generating flashy commercials that fail to genuinely convey their value.

It's vital that entrepreneurs are not misled into thinking they must replicate existing giants like Facebook or engage in dubious ventures. Instead, they should focus on how to utilize emerging technologies and frameworks to actualize their business concepts.

One aspect I appreciate about Teaching Startup is how I can illustrate the supply/demand dynamics that I navigated before scaling the vendor side—this is why there’s a limited number of advisors in Teaching Startup.

I offer guidance based on proven experiences. Now, I aspire to scale this model because, as an entrepreneur, I recognize the potential to leverage new technologies and frameworks to address this issue.

For those seeking practical startup advice, I invite you to try Teaching Startup for free for 15 days. It costs less than 1% of traditional advisory fees, fits into your schedule, and avoids unnecessary chit-chat. Use the invite code MEDIUM to receive your first month for just $5 after the trial period.

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