Online Marketplace Business – 5 Things To Know
What is an online marketplace business?
Think of a marketplace business as the evolution of a referral business. You’d own an app or website that makes it easy for “buyers” and “sellers” to meet each other.
Many marketplaces monetize by taking a cut of each transaction or by charging for membership or listings.
Marketplace is one of 19 types of online business and considered a Level 5 online business, according to our framework.
6 Levels and 19 Types of Online Business
Level 1 = Novice
Okay for side income or beer money, but hard to earn a living.
GetPaidTo
Contests
Level 2 = Intermediate
Best for earning a living online when you’re starting out, but hard to scale.
Remote Job
Freelance
Level 3 = Advanced
Easier to scale and higher income potential, but you usually need significant investment of time and/or money upfront.
Agency
Referral
Resale
Level 4 = Superior
Even more scalable and even higher income potential, but also more complex / difficult / expensive.
Authority
Digital Product
Level 5 = Distinguished
Most complex / difficult / expensive, but the rewards here can be massive.
Physical Product
Cloud Service
Marketplace
Social Network
Level X = Wildcard
These are the misfits. Many aren’t even considered businesses in the traditional sense, but they are all ways to make money online. You typically need a lot of time, money, or luck to succeed with anything here.
Trading
Investing
Esports
Betting
Gambling
Multi-Level Marketing
How can you make money online with a marketplace?
Here are the legit ways I’ve found to make money online with a marketplace business…
Start a Physical Products Marketplace
John Sillings co-founded Art in Res, an online marketplace that connects artists with art buyers…
John SillingsCo-founder of Art in Res $16,000 Art in Res monthly revenueBuild a Digital Products Marketplace
Joe Magnotti co-founded Empire Flippers, a marketplace for people to buy and sell online businesses (mainly websites)…
Joe MagnottiCo-founder of Empire Flippers $2.47 million Empire Flippers monthly revenueStart a Services Marketplace
BJ Wright started Funnel Rolodex, a marketplace for freelancers who offer services related to building and optimizing funnels…
BJ WrightFounder of Funnel Rolodex $58,000 Funnel Rolodex monthly revenue
