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As a business model dork, I’m fascinated by the labels we place on monetization structures characterized by network effects and middlemen.
The three most common labels thrown around for such businesses are Marketplaces, Platforms, and Aggregators.
All of them make money by collecting a fee, often called a take rate, for connecting multiple sides, which is determined by the level of value they provide across three vectors: payment responsibility, demand generation, and required resources.
At the risk of wasting my breath, I’m going to take a gaggle of businesses try to put them into mutually exclusive buckets. Then I’ll promptly argue the counter position (against myself) as to why this is a fools errand in the first place.
Let’s get funky.
I never realized there was a goat in the music video until now.
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