How Most Two-Sided Marketplaces Fail Their Vendors

Five vendor flaws that eventually kill a platform

Most 2SMs fail because the best vendors don’t need new customers

You’re building a new kind of service, so you’re looking for a new kind of vendor

How to spot the vendor failure points in a 2SM

1. The onboarding and vetting process is a mess

2. There is very little matching or tiering.

3. The expectation is that just listing the vendor is valuable to the vendor

4. The vendors get inundated with noise

5. The vendors get punished for vendor leak

The Solution: The 2SM needs to serve the vendor as well as it serves the customer

I’m a multi-exit, multi-failure entrepreneur. Sold ExitEvent. Building & GetSpiffy. Former Automated Insights. More info at

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