Marketplace or SaaS Business?

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.

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Ash Rust

Ash Rust

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Pre-seed Investor. Email: ash@sterlingroad.com. B2B, US only. I work with founders for 3 months before investing. More info: http://SterlingRoad.com/process