I have a business that operates in this space and it can be tricky because of the dynamics. That said, not knowing anything about the sector, size or scope of your business and the question it makes this hard to answer.

It's generally accepted that the greatest example of a 2 sided market is the credit card business ... and they're a useful example of how to create market efficiency and marketing prowess in the space. In this kind of thing I'm a big fan of R&D (ripoff and duplicate) what they're doing well ...

Watch for the cross-market effects. That is the larger your network side of the market the more attractive and differentiated you are from competition. Secondly, the pricing model likely has a more lucrative side and a more subsidized side. The greater alignment you can bring to those sides around purpose the greater the long term synergy. Finally, these models tend toward a dominant player ... watch out for that (unless you're that player).

Good luck.

Answered 7 years ago

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