Today, we’re talking about business models. Should you build a marketplace or SaaS business?
In general, building a SaaS business is a lot easier. This is because you only have one customer type to deal with — you make them happy and you’re good. With a marketplace, you have to generate both great supply and demand. Keeping your customers happy is harder in a marketplace too, as you don’t control large parts of the transaction.
Now, marketplaces can get very, very big. And you’ll get a share of every transaction, that’s why people build them. However, choosing SaaS first doesn’t prevent you from adding a marketplace later, Amazon began as an ecommerce retailer but now they also have a huge marketplace.
