How to choose the right revenue model for a successful service marketplace website?

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Bharat Kumar | Clone Script | Added February 11, 2020

To keep pace with the fast-paced world, people have no time to hold out all the activities by themselves. The number of individuals is now depending upon the service providers for all their requirements of getting their work done. We name it any service, the assistance is out there online for those services. Service providers are now attempting to come online for reaching an enormous mass to expand their service marketplace. This has caused the development of the Service Marketplace website within the market. Thumbtack is made keeping this as the foundation of providing services online. As a result of its popularity, the Thumbtack Clone Script has sprouted and is very in-demand in the market.

In basic terms, Thumbtack Clone is a service provider platform, where users can hire local service providers for getting their work done by getting quotations and verified reviews about the services. It is generally used for routine services like transport services for shifting a house, photography services, personal trainer for maintaining health, house cleaner for getting the house cleaned, etc. These services are classified into various branches like business, design & development, legal matters, technical supports, cleaning services, etc.

Service providers can register on the service marketplace website if they want to serve the society and generate revenue from it. On the other hand, people can register on this service marketplace website to enjoy the advantages of those services to urge their work done.

Marketplace businesses are long-term initiatives. To create a sustainable and successful service marketplace website, you would like to seek out a revenue model that will finance its operations.

Thumbtack

  Money-making revenue models integration:

Thumbtack Clone gives you an efficient service marketplace website for generating money in the long run as it is structured with the best revenue models. This gets proved by:

  • Commission fees

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The foremost popular business model for a service marketplace website is to charge a commission from each transaction. When the service providers and users deal in an agreement, you get the commission for the transaction. When a customer pays a provider, the service marketplace website facilitates the payment and charges either a percentage or a flat fee.

The biggest advantage of this revenue model is that providers are not charged anything before they get some value from the thumbtack clone. This is often really attractive to the providers. At the same time, from the marketplace’s point of view, this model is usually the most lucrative: you get a bit of all the worth that passes through your service marketplace website.

  • Subscription fee

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A subscription fee is a revenue model where either some or all of a marketplace’s users are charged a recurring fee to access the service marketplace website. This model is also referred to as membership fee. The users pay subscription fees periodically or for a single time depending on the type of service they quote to take up and deliver. With this model, providers can find new customers and for customers, it helps them find unique experiences or save costs.

The boon for you here is that you cooperate with long-term customers who bring you a regular gain, which saves you from spending too much on ad campaigns.

Sometimes the subscription fee is taken by the fact that the company is scrupulous about the image of their average user to ensure the safe and pleasant user experience.

The service marketplace website provides several options for arranging membership, depending on the volume of features delivered.

  • Advertisements

Featured ads can be used as secondary revenue streams to help diversify your service marketplace website monetization strategy. This business model allows third-party advertisers to market their products and services. It means that they pay for publishing ads on your service marketplace website. By allowing buyers or sellers to pay a premium to feature their goods and services, thumbtack clone can generate more revenue without increasing other fees but might drive potential users away.

The ways to market goods may vary and typically include graphics and banners, text and mixed advertising. However, take into consideration the fact that ads are often annoying for your visitors. So, use this monetization method wisely. Allow third-party commercial offers to occupy only certain positions on the service marketplace website.

Placing advertisements of varied companies on your service marketplace platform is an opportunity of earning a good amount of money for the thumbtack clone script owner.

But you can’t always control the standard of third-party advertising. It can cause the loss of potential customers, as ads drive users far away from the service marketplace website.

Applying this monetization strategy to thumbtack clone with low traffic may bring less revenue.

  • Listing fee

Some marketplaces charge a fee from service providers once they post new listings. This model is usually used when providers get the value based on the number of listings they have on the service marketplace website and therefore the potential value per listing is big. It helps to aggregate a huge volume of listings to an online service marketplace website and guarantees many visibilities for those listings.

The challenge with this model is that it doesn’t guarantee value for the service providers, and thus the fee can’t be too high. This leads to the platform of having the ability to capture only a comparatively small portion of the worth from a thumbtack clone. A sustainable business model that depends solely on listing fees thus requires really a large number of listings.

  • Conclusion

You should pay special attention when choosing the right monetization strategy for the thumbtack clone because it plays an important role in generating a profit on the service marketplace website.

Before choosing a revenue method of your service marketplace website, we recommend following these steps:

  • Analyze the market and competitors.
  • Define the business model of your service marketplace website.
  • Take into consideration the situation, culture & habits of your target audience.

In short, it’s always a better idea to start out with one monetization method making it a priority. Later, as your business scales, combine other strategies to seek out what revenue models suit your business the foremost perfect way. Get in touch with the best consultants to have expert advice on which revenue models should you include in your Thumbtack Clone.

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