Find the right online business model for your marketplace

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Find the right business model for your Marketplace
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• Different type of business models available in
  the marketplace are
• Commission-based
• Subscription fee
• Listing fee
• Lead generation fee
• Freemium services

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• Commission-Based
• Commission based approach help owners to capture
  money and start gaining profit even at a very low
  level of activity.
• There are two types of commission-based fees
• fixed fees.
• variable fees.

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Fixed Fees The fixed fee is a set of
percentages charged by the marketplace owners
from each seller and buyer. Variable Fees The
variable fees are adjusting according to the
total amount of bill.
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• Subscription Fee
• A subscription business model is the one in which
  customers pay a fixed amount of money on fixed
  time intervals.
• This method allows consumers to subscribe to the
  services for a monthly or yearly basis and earn a
  periodic subscription fee.
• One of the main advantages of the subscription
  model is steady monthly revenue and gives a
  recurring revenue and budget-friendly offers to
  the customers

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• Listing Fee
• The vendors have to pay the fees to list their
  offerings in the rental marketplace and the fees
  can be charged on a regular or premium basis.
• Another method is to charge listing fees for
  promoted ads and other such features.
• The listed fee strategy offers more chances for
  marketplace providers to earn high profits and
  guarantee for lots of visibility.

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• Lead generation fee
• This method gives a better value proposition than
  the listing method because the provider has to
  pay only when they get in touch with the
  potential customer.
• This is the way the marketplace gets revenue by
  charging the seller to get in contact with the
  customer.

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• Freemium services
• In any freemium services, the marketplace offers
  for free and charges the user for upgrades.
• There are two ways to implement the freemium
  services, either giving free charge and charge
  extra for upgrades or giving free as well as paid
  services.
• To make a freemium model work better, the model
  should look perfect for generating revenue with a
  high conversion rate.

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