Earlier quoted context omitted.
I’ve seen some writing on what makes marketplaces resilient to “supply side defection” as you call it, but I’d love to hear your take. Specifically I’d love to hear more about structuring to leverage the relationship, or anything else you think is important. What specific structural things are important?
Generally speaking: your participants will use you when they need you and cut you out when they can do so cheaply. This isn't an indictment of them: it's completely rational for them to do this. But that means it's up to you to add value to the transaction, until the perceived cost of defection is higher than the platform margin. Airbnb did this beautifully: they set up insurance for all their hosts, and so were able…
Re: How to Kill a Startup Idea with Google Keyword Planner and AdWords: A Case Study
#191From guest point of view, Airbnb defection defense is pretty annoying, as it doesn't let you post URLs, addresses, or phone numbers prior to booking. Also pretty easy to circumvent.