⚖️ Marketplaces are won by balancing both sides, not growing one

PM Marketplace Dynamics
(2026 Edition)

5 dynamics and 5 metrics for marketplace PMs.

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5 Dynamics

1.

Cold start: solve supply first in most marketplaces

2.

Liquidity matters more than GMV — match rate predicts health

3.

Take rate has a ceiling — push too high and supply disintermediates

4.

Both sides have LTV — optimise for the constrained side

5.

Geographic or category liquidity — don't compute marketplace health globally

5 Metrics

1.

Match rate — % of demand that finds supply

2.

Time-to-first-match for new supply

3.

Repeat usage by both sides

4.

Take rate and net take rate after incentives

5.

Disintermediation rate — supply and demand going off-platform

FAQ

Should marketplaces subsidise supply or demand first?

Usually supply. Demand finds a quality supply catalog; supply won't stay without demand, but without supply there's no product at all. Classic examples: Airbnb, Uber, DoorDash all solved supply before demand. Exceptions exist for demand-saturated markets where supply already exists outside.

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