I haven't done anything, but i've got an idea

[HarrisonSmoske]

After reading Millionaire Fastlane I had a fire lit under my butt. I decided I needed to start my own business. I have been following this forum for almost two months and I finally have come up with a good idea, that with the right execution could pay off.

I'm developing an online marketplace called Swappar, shameless plug, where people can sell and buy products. I know what you're thinking, this isn't original and there's plenty of big name competitors. I believe I'm developing a product the users will enjoy. My goal is to eliminate bots, scammers, service fees, and most importantly advertisements. Now, you may be thinking I'm crazy and could never accomplish all of these. My plan is to start off by charging an annual "subscription" fee of $4.99, which will stray away the bad actors since these people hate paying a fee to do their scams. If I do this right from the onset I will limit scammers and bots and even if they do get in, they will be easily identifiable. Also, this creates a "barrier to entry" which will make the marketplace feel more like a gated community.

This fee will also generate enough revenue in order for me to run no advertisements, and charge no service fee at all. I have no investors to answer to, I truly want to provide the best marketplace for people to sell on. So what do we think? Any advice, recommendations, thoughts? I can take it, and I need real opinions positive or negative, just provide feedback if you're going to be negative.

Thanks y'all!

 

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[REV5028]

I believe I'm developing a product the users will enjoy.

You believe based on your perception of what others will enjoy, or did you do some research and have people actually, literally tell you that they would enjoy/want/use this?

 

[HarrisonSmoske]

You believe based on your perception of what others will enjoy, or did you do some research and have people actually, literally tell you that they would enjoy/want/use this?

I have gone through every review on the app store of my competitors whether they are large or small and created a database of all their complaints. I have generated their top complaints by keyword. I believe if I create a product that addresses these issues I could capture some of my competitors users.
Is there any way you know of to test my hypothesis? I made a website and commented on a couple reddit and twitter posts and people signed up via email. I got 10 people, but for the amount of people I reached that was actually a good percentage.
I'm looking for a way to reach at least a thousand people to get some real data, do you know of a way to do this?
Thanks in advance!

 

[amp0193]

Also, this creates a "barrier to entry" which will make the marketplace feel more like a gated community.

It will create a barrier to entry that will prevent anyone from using the app in the first place.

Make it free. Get users. If they love the service so much they can’t live without it, they will pay you $5 to remove ads.

But if you charge $5 from the outset, you’ll never get anyone to sign up.

 

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[MJ DeMarco]

Two-sided marketplaces are virtually impossible to start without a lot of money to attract users for a momentum stage.

How do you think people will respond after paying a fee to access your marketplace only to find no activity and no users?

Research two-sided marketplaces for several hours before you spend one red cent.

Also, you should probably rename your thread title as you didn't start a business, you thought of a business. The latter is like watching the Olympics versus playing in them.

 

[uhhfeef]

Is there any way you know of to test my hypothesis?

Get the 10 people to pay for it.

If they don't, reach out and ask questions.

Read the book called "The Mom Test". People lie. Alot.

 

[ygtrhos]

People lie. Alot.

This is probably the weakest link of your business.

You have very unreliable/scarce data about your users and everything depends on them.

 

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[cmh]

I like the idea of basically a gated community version of craigslist. I'm at the point of life where I'm happy for the option to pay and keep the riff-raff out. BUT, I'm also not a very typical consumer. MJ is right that 2-way marketplaces are tough to start; you have to get that critical mass of buyers and sellers.

Get the 10 people to pay for it.

If they don't, reach out and ask questions.

Read the book called "The Mom Test". People lie. Alot.

I second this recommendation. It's a very fast read, and you'll cringe thinking about the number of times you asked a loved one for idea feedback and got the predictable "sounds great." I had to learn this the hard way (hundreds to thousands of hours of labor). You should take an hour to read this book.

 

[HarrisonSmoske]

Two-sided marketplaces are virtually impossible to start without a lot of money to attract users for a momentum stage.

How do you think people will respond after paying a fee to access your marketplace only to find no activity and no users?

Research two-sided marketplaces for several hours before you spend one red cent.

Also, you should probably rename your thread title as you didn't start a business, you thought of a business. The latter is like watching the Olympics versus playing in them.

You're right MJ. Two sided marketplaces are incredibly tough, but I'm sticking with it because I see an opening. And again, you're right, people will hate to pay a fee with no activity or users. But, I have another plan for that. I want to thank you for this forum, I finally reached out and got some guidance from Ian Thompson. I have a solid plan in place for my first few steps. I took action yesterday after me and Ian's phone call and I got people signed up, and wanting to see what I can do for them in the mean time. I'm going to provide them with so much value they won't be able to say no.

Lastly, you're right again! I haven't done a damn thing yet. All I did was talk about it, and sit behind my computer and "line things up". I had to get out in the world to start the business!