The multisided platform business model is a service or product that connects two or more participant groups.
Multisided platforms have
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consumers (users) who use the platform but don’t pay for that
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customers (advertisers) who is smaller group but responsible for the revenue.
Multisided platforms create value for their participants by
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Facilitating the exchange of goods and services
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Providing a network
Network effects type
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Direct network effects (same-side network)
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It is when participants on one side of the network affect each other
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i.e. Facebook or Instagram: the more users, the more interesting it becomes
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Indirect network effects (cross-sided network effects)
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drivers and passengers / buyers and product
Revenue streams of MSPs
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transaction fees
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it can be fixed or a percentage
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could be invisible to the customer
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access fees
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could charge for enhanced access fees
Challenges
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it requires consumptions
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If there are no transactions, there is no revenue
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must be regularly acquiring and retaining audience
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Building an initial user base can be hard
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Engaging users demand a high-quality service
