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Choosing your marketplace platform — #marketplace #002

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Choosing your marketplace platform — #marketplace #002

If you’re following along in the series, How to Build a Marketplace, this is part 2 where I’m going to talk about the platform you’ll be building your marketplace on. I chose this is as part 2 because the foundation of what you build on is a big factor in making sure you’re set up for success.

One note before we move ahead. I’m making a couple assumptions.

  1. You understand your business/model/market/audience, etc. (I hope this is common sense).
  2. You potentially have money to put into this. (It’s a business, take it serious).
  3. You have a co-founder (or two) to fill in the skill gaps you don’t have.

Let’s jump right in!

Be clear on the type of marketplace business you’re starting

I’m going to assume at this point you’ve got a good idea about your business but just to be clear, it’s important to think through this. As you think through you need to understand the following:

  • How will customers be utilizing the marketplace? A mobile app or web app.
  • What type of products are you selling? Physical products, digital products, services, etc.
  • What’s the location? Local, national, global. This can really affect customers and vendors around payment options and payouts.

Let’s start with what makes a quality marketplace?

Before we dive into the options, let’s think through what features you’ll potentially need at a high level. These could vary depending on your business model but it’s good to see what features you can slide on and what features are must have.

For Buyers

  • Easy sign-up — Reduce as much friction as you can. Sign-in with Facebook, Twitter, Google, etc.
  • Search functionality — In my opinion, this is vital and a must have. Honestly, it’s essential for most ecommerce sites. Not only does your search need to be quick, offer filtering options but it needs to be relevant. Make sure users can find what they’re looking for in an instant.
  • Cart / Checkout — Consider how customers will need to purchase products. Will it require subscriptions? Is it national vs. international payments or both? Can customers checkout as a guest. There’s a lot to consider here.
  • Review system – When you’re building a two-sided marketplace, reviews deliver a ton of value for potential buyers. Don’t shy away from negative reviews either. As long as the seller can respond of course.
  • Type of Product(s) – Digital? Physical? Services? This is important to consider because this can change the checkout/cart you choose to go with. Additionally, the delivery of products needs to be thought out.

Sellers

  • Easy sign-up — Just like your buyers, your sellers need a seamless way to get started with your marketplace.
  • Adding products – Another crucial feature for sellers. Depending on the type of marketplace, sellers will want the ability to customize certain things as they upload products.
  • Support system — Customers expect top-notch support no matter where they buy from. Having the ability for customers to interact with the sellers is a key part to offering a solid customer experience.
  • Review system — It’s important to put yourself in your sellers shoes. They need to the ability to reply to all those 1 star ratings. In a lot of cases, the customers may be confused and giving a bad rating for all the wrong reasons. Offering sellers the ability to provide context helps potential buyers.
  • Storefronts — Again, depending on the type of marketplace, giving sellers the ability to showcase themselves a bit can go a long way.

Choosing the best marketplace platform.

Now that we’ve gone through all the options to consider at a high-level, I think it’s worth looking at the platforms now. These could vary depending on your business model but it’s good to see what features you can slide on and what features are must have.

First off, there’s no easy way to build a marketplace. Sure, there are services like ShareTribe (I’m going to break down) but if you’re serious about building a marketplace it’s either going to take some up-front investment or you have the chops to build it yourself.

I know there’s plenty of tutorials on how to do it yourself and that’s great but not everyone can design and code. I’m breaking down a few routes you could take but don’t shy away from budgeting $5-10k to get something built. Don’t get me wrong, I’m about the cheapest, MVP possible but you’re building a damn marketplace. It takes time and you have to have the basics nailed down that we broke down above.

Let’s breakdown a few solutions.

WordPress

When we built the first versions of MOJO Marketplace, we chose WordPress and I would never go back and change it. Back then (2009), there wasn’t WooCommerce, Easy Digital Downloads, etc. so it was essentially WP as a platform to manage all the content and all of the commerce and seller functionality was custom built.

Today, it’s so much easier with the help of WooCommerce or Easy Digital Downloads. Here’s a few recipes that could work depending on the type of marketplace you’re building.

WooCommerce (Learn More)

Easy Digital Downloads (Learn More)

Pro’s:

Both plugins have been around the block for a long time and are definitely capable of handling a marketplace. Especially if you’re just building an MVP. Easily extendable and customizable. Plenty of designers/developers to call within the WordPress community to help if you don’t have the chops.

Con’s:

WordPress open source (also a pro) so it will require you to stay up to date and be sure to protect yourself security wise. Also, WP is very database intensive so I’d be prepared to experience some performance issues if you’re not careful. This can be costly in the future. Lastly, buying so many plugins can be annoying and you can open yourself up to conflicts and security issues with so many plugins.

ShareTribe (Learn More)

I personally have not used ShareTribe. From the site it seems to have a lot of the features you’d need. My only issue with the service is the customizability. From what I can see, the example sites or other sites I found using it seemed really boxed in their templates. Again, I haven’t used the service but I’d love to see them go into more detail about the custom options.

Pro’s:

Easy to get started as it’s essentially an out of the box solution. Pricing seems reasonable, plus you get a free 30 day trial. Not too shabby. They also have a pretty impressive list of features for any advanced marketplace. This could serve well for an MVP solution.

Con’s:

It feels a little “boxed” in and only ideal for a few use cases. Meaning, if you have anything specific needs for your marketplace or business model, it may be hard to pull off. Pricing right out of the gate for testing a business model is a bit steep especially if you have FREE sign ups as the pricing is by users.

Stripe Connect (Learn More)

I could put this under the “Custom” section but it’d be pretty easy to get a few pages designed and hire a developer to integrate Stripe connect to start testing out your idea. I like Stripe connect for obvious reasons (it’s Stripe) but for short-term and long-term you have the flexibility in the world it just may take some engineering/dev chops to get you rolling.

Pro’s:

I love how it gives you the ability to serve any use case. This is huge if you’re idea has specific needs or you’re looking to differentiate yourself. Additionally, you have some big flexibility in payout options which is big when it comes to recruiting sellers or vendors for your marketplace.

Con’s:

Like I mentioned, it’s going to require some dev knowledge or hiring someone that can build this for you.

Custom

If you’re a designer/developer or  little cash lying around I’d personally recommend this route. I’d most likely use Laravel PHP for the backend, REACT for the frontend, Stripe or Braintree, spin up a server on AWS and go to town. You can keep the front-end super light and control the technical debt from the get go.

Pro’s:

Ideally, you can still get something launched quickly if you stay focused and keep the first iteration small. Additionally, you don’t run the risk of being boxed in and you freedom to extend the product as you wish. You also have the power over the speed and performance based on your infrastructure and code base.

Con’s:

Time. Money. It takes a lot of time and some money to get you there. If you have the chops as a team to build this, that’s awesome but it does require your time and energy. If you don’t have the skills to pull this off, that’s ok. But it will take money and someone with the ability to strategically layout what you want built the right way.

—

There you have it. Like I said above, I’m assuming you’re trying to validate your idea or build a business. I realize nowadays it’s cool to be an entrepreneur but anyone that’s been down this road know’s it takes time, money, limited sleep, stress, patience, hustle and everything else in between. I hope this series helps you get a few steps closer to what you’re trying to build.

Next up, chicken or the egg problem.

Business Startups

Create not consume.

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Create not consume.

When I kicked off 2018, this is what I said my motto would be.

Create not consume.

I figured it’s a new year and it’s time for new goals. Now that we’re over a month into 2018 I’m excited to say I’ve stayed true to this motto. I have plenty of things brewing that are being executed as I planned.

Last year my motto was “The time is now.” and it was fitting for 2017. I felt like I executed on everything I set out to do last year but for some reason this year feels different. I’m ready to take on more and raise my bar to the next level. And just like everything in life, things change and it’s time to adapt to the new year. I am fired up to use everything I’ve learned over the last few years and putting it into building, making and creating again.

And let me clear, as you create it’s not always some new shiny product, new business, etc. Simple things like pushing more content on YouTube or using those extra hours at night to work on that project. Not everything has to be some big ordeal or announced to the world. Just be honest with yourself, your goals and go out there and just do.

Expect to see my blog fill back up with new content on my progress, finishing the “How to build a Marketplace” series, thoughts on business and everything else in between.

What about you?

If you want something better when it comes to what you do everyday, steal this motto this year. Stop waiting or watching. Just do. There’s no secret or one moment where it all changes. It just all adds up after you finally decide to start. Here’s to creating, not consuming.

What are you going to create in 2018?

#createnotconsume

Business Marketplaces Startups

How to build a Marketplace Business – #marketplace #001

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How to build a Marketplace Business – #marketplace #001

I’m constantly seeing new and exciting marketplace businesses pop up. In all niches. Legal, design, real estate, travel, the list goes on. A lot of the new, hopeful startups are positioned as “The next Uber of…”. That’s great but there’s no question that building a marketplace is hard work. When I think back on when I first started building marketplaces I remember all the obstacles and questions I had.

Where do you start first?

How do you gain traction?

Do you focus on the consumers or suppliers first?

With that being said, I’ve been thinking of sharing what I’ve learned along the way. I wanted to share my experience in building marketplaces. For one, anyone looking to start down this path I’m sure would have loved this content. Secondly, I’m finding as I write my thoughts down, I’m finding new inspiration and clarity in what I’m working on.

The good and the bad of Marketplaces.

The bad. There’s a reason why most marketplace ideas never take off.  It takes patience, timing, a good platform and creative thinking. You have to build trust in two audiences and you ultimately serve two masters.

The good. There’s also a reason once they reach a critical point they are hard to break down. It’s an entire ecosystem that doesn’t just crumble over night. Look at one of the first – Craigslist. It’s atrocious to look at but there’s an ecosystem there that’s living and breathing.

Why listen to me?

If I’m being honest, I’m a jack of all trades and master at none. From design, front end dev, marketing, conversion testing, product management, etc. I have a tendency to want to execute on all fronts so I’m never slowed down. With that being said, this series isn’t meant to show you how to literally build the tech for starting a marketplace. Or how this design layout is going to triple your business overnight. It’s just not that easy. I’m going to share real examples, trial and error and experiences I had whilst building a marketplace business.

When it comes to marketplaces though, I have found a way make my own luck and I would say I’ve been successful in my attempts with start-ups and new ventures without raising millions in VC money. For the last 10+ years of my professional life, I’ve built (with a team) several marketplace businesses, including MOJO Marketplace, which today boasts over 5 million users. The two I have built were both acquired. Plus, this is free advice so if you don’t like it, I get it.

I’m going to talk about a few key things in this series that could increase your chances of having a successful marketplace.

Marketplace building series…

This will be an ongoing series but I’ll keep an update list of the series below to summarize the series.

  • What platform to build on top of?
  • Chicken or the Egg
  • Defining your MVP for launch
  • Features vs Value
  • 6 ways to create quick traction with your marketplace
  • And more…

Interested?

If you are, hop on the email list below so you don’t miss a post!

Business Startups

Naive is the new black.

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Naive is the new black.

Back when I started my first business I was ignorant. I was innocent. More than anything, I was naive.

I didn’t know much of anything because I hadn’t been smacked in the face by the market yet. Just like most of us when we start out, you just don’t know what you don’t know. Along the way you find out this idea of yours is harder than you thought. No one cares that you launched your product. It’s a different story trying to get people to pull out their wallet. Driving sales and revenue takes hard work, patience and determination.

The worst part is, all the cynical bastards love to rub it in your face.

Today I realized something. After being smacked in the face over and over. Being told no again and again. Falling short on my revenue projections. And a million other failures on top of that, I haven’t changed. I’ve realized my biggest strength after all of it is staying naive. I still believe I can change whatever world I’m in and I’m 100% serious when I say that. If anything, I have more confidence and belief I can do even more now after going through all of that. I won’t let the scars change who I was when I first started.

Call me crazy but I prefer to be called naive.

Business Startups

Rethinking the 1 on 1 meeting.

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Rethinking the 1 on 1 meeting.

If you work at any place with a team, manage a team or if you run a company I’m going to assume you’ve had a 1 on 1. I’m going to assume you dread them. I’m going to assume when you walk out you’re even less motivated because of how pointless it was. And I’m also going to assume they go something like this.

“Are we still doing this 1 on 1?”

“Oh yes, let’s do that. I was looking forward to zoning out for the next 15-30 minutes.”

“Ok so here’s the agenda. I did x,y,z and we grew X and we’re going to focus on this next week to make sure we’re on pace for our targets.”

And blah, blah, blah. And more blah.

Traditional 1 on 1’s are archaic.

Why are we doing this? It’s just another meeting to throw on the calendar. Let’s waste more time talking about what you did in the past and want to do in the future. There’s nothing real happening. It’s all wasted energy that could have been used on executing something meaningful.

And worst of all, both of you didn’t get anything valuable out of it and even if you did, the value wasn’t equal.

I’m here to ask you to stop. Please.

We live in a world now where reviewing your “weekly progress” can be sent in a short email. Status updates on a project are sent in automated reports from your project management software. Sharing a google doc outlining your quarterly plan for the future can be collaborated at the same time and in real time.

All of this can make the age old 1 on 1 become extinct.

Connect personally. Close the gap. Get to what’s important.

That’s exactly what I do in my 1 on 1’s. My goal is to close the gap.

I want to share what I do with my company, MOJO Marketplace. When it reached a point where I felt like I couldn’t have my hands in everything I started something called “MOJO Minutes“.

Essentially, every month I have 10-15 minutes scheduled with every MOJO employee. Yes, everyone. Sometimes it’s in my office, a couch or a walk to grab coffee but I try to keep my calendar open for things that are important and to me my employees are the most important before anything else.

The MOJO Minutes looks something like this if it’s their first one.

“The stage is yours. I want to spend the next 10-15 minutes getting to know “Mike”. I want to know what makes you tick. Let’s get to know each other personally, what do you need from me and what are we not talking about that we should be at MOJO.”

The goal here is simple. I want to connect personally, close the gap between the two of us and get to what’s important.

What happens next is where the real magic lies.

I keep mentioning “close the gap”. This is the most important part.

During traditional 1 on 1’s there’s no substance. There’s no connection. You’re creating “YES” women and men. They are just wanting to please you, take notes of what you want and get out alive. You never get to the juicy parts of what’s on their mind.

In short, your employees are your soldiers, usually on the front lines and they can give you the feedback to make the slight adjustments to stay successful. The problem with your agenda driving 1-1 is you’re widening the gap between you and your most important part of your company. Your employees.

By getting to know each other personally, you create a connection that brings you closer together. You’re closing the gap. You start to learn what motivates them. What their strengths are. More importantly, with a connection the questions start coming out as you gain trust and they become comfortable with you.

“I’m concerned about this issue, can I share what’s going on?”

“Why do we focus on X?”

“Do you want us working on this or that?”

“Do you need anything from me?”

You’ve connected personally and closed the gap on figuring them out and vice versa. They start figuring out what’s important to you as they feel more comfortable asking questions. You’re getting to what’s important.

There can be value in 1 on 1’s.

I’m not proposing if you have a company of 500 employees you need to personally meet with everyone. You can teach this method of 1 on 1’s with your leaders to get more out of your employees. Connect personally, close the gap and get to what’s important.

Drop the agenda. Lose the status quo. If you’re managing people and you implement this strategy it can make your team feel like they have a sense of purpose, feel respected, feel acknowledged and more motivated then when they walked in. You will have effectively closed the gap and in return you’ll both reap the benefits.