3. MARKETPLACES VS. LEAD GEN
Websites which aggregate supply and demand but don’t own
the transaction miss out on a tremendous amount of value.
November 15, 2011 PAGE 3
6. CHARACTERISTICS
Supply Demand
• Valuable asset undermonetized • Limited resources with
• Limited awareness expensive alternatives
• Lack of transparency with • Limited awareness
guests • Lack of transparency with hosts
• Awkward in-cash transactions • Awkward in-cash transactions
November 15, 2011 PAGE 6
7. OTHER VERTICALS
Do these characteristics remain consistent across all
types of transactions?
November 15, 2011 PAGE 7
8. CASE STUDY # 2
Problem: It’s incredibly difficult to find great event space.
November 15, 2011 PAGE 8
9. FRICTION COEFFICIENTS
The transaction has different characteristics which
create friction and encourage business outside the
platform.
• Size of the transaction
• Intimacy of the relationship
• Frequency of the relationship
November 15, 2011 PAGE 9
10. EFFICIENT COEFFICIENTS
There are ways to keep transactions on your platform.
• Reputation
• Transparency
• Ease of Use
• Security
November 15, 2011 PAGE 10