Choosing right revenue model for successful running of service marketplace website
While the product-based e-commerce, taxi-booking, food sectors and others have seen their share of success in the online world, it is now the time for home service marketplace websites to capture the imagination of aspiring tech entrepreneurs and investors.
So how different are the service marketplace websites from that of product-based e-commerce platforms? Simple!! While the product-based e-commerce platforms sell tangible products, the service marketplaces sell services by connecting the service seeker and service providing professional in their own locality or city.
The people who are in want of a service can hire the service professionals who have registered on the marketplace. They deliver the services at the door steps of service seekers. A wide range of categories is added to such a marketplace website. Right from education, interior designing, beauty, fitness, plumbing, cookery, photography, babycare to music, dance, geriatric services, a slew of services are on offer. This list is only a tip of the iceberg, however.
Challenges in this industry and succeeding by deploying the right revenue model
Besides the opportunities, there exist challenges as well for startups that launch such online services platforms. Unlike in the product-based e-commerce industry where there is no scope for buyer and manufacturer getting into direct connect, the online home services industry brings service seeker and provider into direct contact. Hence, what if the two parties dump the website for future services and close a deal for themselves? This is one big challenge that faces the online services sector.
However, by employing workflow management techniques, startups can overcome this problem. Alongside, the service providing professionals who build a reputation for themselves on the website in the form of feedback, comments would not ditch the platform.
Apart from that, the kind of Revenue model followed can make or break things for the website. This is indeed a challenge for entrepreneurs. They have to choose the revenue model that is favorable not only for their business but also for making the service seekers and providers to join and stick to the platform.
Transaction oriented revenue model
In this model, you as a website owner can charge a certain percent as commission on payments made by the service seeker to the provider. It means your revenue model is totally dependent only on the transactions made. Do not place any fee for registering on the site and placing of portfolios and listing of services by the professionals. Less number of charges means the chances of retaining the users is greater.
Lead oriented revenue model
In this, the leads for professionals are provided by you. The professionals will pay you and you send the price quotes to the service seeking customers. This method is now being followed by Thumbtack.
This model will not force the professionals to lose money on every transaction. Also, since it is a bidding model, the chances of customers getting the best professionals on board is higher.
Subscription oriented revenue model
Here, the service seekers do not have to make payments on each service. They can make the payments on a monthly basis. The business model enables the users to stick on to your website for a long period.
Future of service marketplace platforms
Simply, the future tends to be very bright. Every idea, be it the idea of selling products online or any other, have initially been rubbished off of by their detractors. However, they were all proven wrong. The Same thing holds good for service marketplaces as well.
Also, since quality services can be availed, many people would evince interest in finding and hiring service professionals online. Importantly, the customers can get quotes from the professionals, leading to many options when it comes to choosing the desired professional. Even the professionals can get exposure to a large number of customers online.
How to startup a service marketplace website?
Launching a services marketplace website may seem tedious for many aspiring entrepreneurs. However, that is not the case. With the availability of readymade scripts, which are also customizable, it is no harder to startup a website.
Agriya’s Thumbtack clone script, called the Getlancer Quote, is a sure way to success in the industry. The script can create an impeccable services marketplace. Modern technologies have been used in the development of thumbtack clone script. Features wise, the script is top-notch. Hence, entering into this industry using this high-quality script will make you a successful entrepreneur.