My marketplace bootstrapping strategy: what are your thoughts?

[klaipeda]

Hello, I'm building a marketplace, and I'm very close to the release of the MVP. I created the brand following the concept I learned reading Al Ries books about positioning; My brand is in a new category compared to the competitors and has a new approach to the market, bringing new technology. Full story here

# The marketplace
My marketplace lets the user load a video about a home issue. The problem is recognised using AI technology, and the correct tradesman close to the user is contacted to make a quote. The video and AI reduce all the friction on the user side and makes it easier for the tradesman to understand and quote the service.

# The Problem and my solution
The problem I'm facing now is the bootstrapping of the marketplace. I read the book The Lean Marketplace, and it suggests starting with the suppliers. Maybe with something like Fiverr, it makes sense, but here I think the best approach is the opposite (thanks @Andy Black). Presenting yourself to the tradesman with a customer ready to quote is the best introduction.

Here is my plan. I loaded on my marketplace 100 tradespeople spread in a specific area of Melbourne (Australia), I found their details on the internet. I focus my marketing on the users to load a video. Whenever a video is loaded for a quote, 5-7 tradespeople get an email/SMS with the link to watch the video and quote.

The tradespeople don't know my brand so. I'll pay an Australian girl to follow up the email/SMS to make the quote.

The restricted geographical area let me start little and grow from there.
Now, I do not know much about marketing, but I was thinking something like this:

• landing page with 2 CTA for the customer:
  • 1) load a video
  • 2) subscribe to email to get updates. Not everyone has an issue to solve now. I want to keep the user and make brand awareness
• A "gumtree post" direct to who is looking tradesman that redirects to the landing page.
• Talk about the service on local groups on Facebook.

The service will be out for free. The goal is to bring value and get people to use the service. I want to create a community on Facebook where people can give me feedback, but at the beginning, I would be happy to call the customers to interview them and get feedback.

After some videos loaded, I would add a landing page for the tradespeople and reach them on LinkedIn/email/Facebook.

# Goals
As I wrote before, the main goal is to bring value and solve a problem. I want to release ASAP as Beta and see if there is a product-market fit. Once there are some customers and the service is mature enough, I can get some revenues.

I can Ask the tradies to pay a monthly subscription and offer the early adopters a 1-year discount. That would be an excellent start to get some fuel and continue the development.

I can add the payment in the app and get a % fee for every transaction. The major competitor asks 22%, but the service I provide is more focused, and it can get a good revenue asking for less (like 10%)

# Questions
What do you think about this strategy?
Do you think I should hire someone on Fiverr/Upwork to help me develop the marketing strategy?

I found a copywriter, and she offered me a strategy for 2000$, but I had bad vibes. I feel she is applying a method learned in some books without understanding what I'm doing and my goals.

I feel that a good landing page would be enough, and I can find a copywriter able to write me a good copy for ~400$. After that, I will talk in the groups and see how it goes.

What do you think?

 

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[Raja]

wouldn't it be better if you start with doing affiliate marketing in your niche?

you sell other people products, get traffic then build your marketplace after decent traffic to your affiliate site

 

[Andy Black]

Hello, I'm building a marketplace, and I'm very close to the release of the MVP. I created the brand following the concept I learned reading Al Ries books about positioning; My brand is in a new category compared to the competitors and has a new approach to the market, bringing new technology. Full story here

# The marketplace
My marketplace lets the user load a video about a home issue. The problem is recognised using AI technology, and the correct tradesman close to the user is contacted to make a quote. The video and AI reduce all the friction on the user side and makes it easier for the tradesman to understand and quote the service.

# The Problem and my solution
The problem I'm facing now is the bootstrapping of the marketplace. I read the book The Lean Marketplace, and it suggests starting with the suppliers. Maybe with something like Fiverr, it makes sense, but here I think the best approach is the opposite (thanks @Andy Black). Presenting yourself to the tradesman with a customer ready to quote is the best introduction.

Here is my plan. I loaded on my marketplace 100 tradespeople spread in a specific area of Melbourne (Australia), I found their details on the internet. I focus my marketing on the users to load a video. Whenever a video is loaded for a quote, 5-7 tradespeople get an email/SMS with the link to watch the video and quote.

The tradespeople don't know my brand so. I'll pay an Australian girl to follow up the email/SMS to make the quote.

The restricted geographical area let me start little and grow from there.
Now, I do not know much about marketing, but I was thinking something like this:

• landing page with 2 CTA for the customer:
  • 1) load a video
  • 2) subscribe to email to get updates. Not everyone has an issue to solve now. I want to keep the user and make brand awareness
• A "gumtree post" direct to who is looking tradesman that redirects to the landing page.
• Talk about the service on local groups on Facebook.

The service will be out for free. The goal is to bring value and get people to use the service. I want to create a community on Facebook where people can give me feedback, but at the beginning, I would be happy to call the customers to interview them and get feedback.

After some videos loaded, I would add a landing page for the tradespeople and reach them on LinkedIn/email/Facebook.

# Goals
As I wrote before, the main goal is to bring value and solve a problem. I want to release ASAP as Beta and see if there is a product-market fit. Once there are some customers and the service is mature enough, I can get some revenues.

I can Ask the tradies to pay a monthly subscription and offer the early adopters a 1-year discount. That would be an excellent start to get some fuel and continue the development.

I can add the payment in the app and get a % fee for every transaction. The major competitor asks 22%, but the service I provide is more focused, and it can get a good revenue asking for less (like 10%)

# Questions
What do you think about this strategy?
Do you think I should hire someone on Fiverr/Upwork to help me develop the marketing strategy?

I found a copywriter, and she offered me a strategy for 2000$, but I had bad vibes. I feel she is applying a method learned in some books without understanding what I'm doing and my goals.

I feel that a good landing page would be enough, and I can find a copywriter able to write me a good copy for ~400$. After that, I will talk in the groups and see how it goes.

What do you think?

Have you generated any leads yet that you can approach tradesmen with? I think everything else is a moot point if you can't generate the leads.

 

[Davejemmolly]

I think Andy is on the money here.

Firstly, you need to validate the service, by getting a home owner with an issue to upload the video.

Once you have a problem, you can manually do the leg work to call a tradie to offer to send them a lead for free.

As Paul Graham from Y Combinator once said 'do things that don't scale'

Once you know you have leads that convert.. ie, the client actually calls the tradesman to get the problem fixed, then you can start to build the automation.

Editing this post to say that your marketplace sounds super interesting! Congrats!

 

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[klaipeda]

wouldn't it be better if you start with doing affiliate marketing in your niche?

you sell other people products, get traffic then build your marketplace after decent traffic to your affiliate site

I'm sorry, but I have no idea how to affiliate for this specific problem I'm solving.

 

[klaipeda]

Have you generated any leads yet that you can approach tradesmen with? I think everything else is a moot point if you can't generate the leads.

The problem is precisely that. I need to generate leads, and I came out with the strategy I've mentioned in my post. I was just asking the forum's opinion because It's not my field.

 

[WJK]

Hello, I'm building a marketplace, and I'm very close to the release of the MVP. I created the brand following the concept I learned reading Al Ries books about positioning; My brand is in a new category compared to the competitors and has a new approach to the market, bringing new technology. Full story here

# The marketplace
My marketplace lets the user load a video about a home issue. The problem is recognised using AI technology, and the correct tradesman close to the user is contacted to make a quote. The video and AI reduce all the friction on the user side and makes it easier for the tradesman to understand and quote the service.

# The Problem and my solution
The problem I'm facing now is the bootstrapping of the marketplace. I read the book The Lean Marketplace, and it suggests starting with the suppliers. Maybe with something like Fiverr, it makes sense, but here I think the best approach is the opposite (thanks @Andy Black). Presenting yourself to the tradesman with a customer ready to quote is the best introduction.

Here is my plan. I loaded on my marketplace 100 tradespeople spread in a specific area of Melbourne (Australia), I found their details on the internet. I focus my marketing on the users to load a video. Whenever a video is loaded for a quote, 5-7 tradespeople get an email/SMS with the link to watch the video and quote.

The tradespeople don't know my brand so. I'll pay an Australian girl to follow up the email/SMS to make the quote.

The restricted geographical area let me start little and grow from there.
Now, I do not know much about marketing, but I was thinking something like this:

• landing page with 2 CTA for the customer:
  • 1) load a video
  • 2) subscribe to email to get updates. Not everyone has an issue to solve now. I want to keep the user and make brand awareness
• A "gumtree post" direct to who is looking tradesman that redirects to the landing page.
• Talk about the service on local groups on Facebook.

The service will be out for free. The goal is to bring value and get people to use the service. I want to create a community on Facebook where people can give me feedback, but at the beginning, I would be happy to call the customers to interview them and get feedback.

After some videos loaded, I would add a landing page for the tradespeople and reach them on LinkedIn/email/Facebook.

# Goals
As I wrote before, the main goal is to bring value and solve a problem. I want to release ASAP as Beta and see if there is a product-market fit. Once there are some customers and the service is mature enough, I can get some revenues.

I can Ask the tradies to pay a monthly subscription and offer the early adopters a 1-year discount. That would be an excellent start to get some fuel and continue the development.

I can add the payment in the app and get a % fee for every transaction. The major competitor asks 22%, but the service I provide is more focused, and it can get a good revenue asking for less (like 10%)

# Questions
What do you think about this strategy?
Do you think I should hire someone on Fiverr/Upwork to help me develop the marketing strategy?

I found a copywriter, and she offered me a strategy for 2000$, but I had bad vibes. I feel she is applying a method learned in some books without understanding what I'm doing and my goals.

I feel that a good landing page would be enough, and I can find a copywriter able to write me a good copy for ~400$. After that, I will talk in the groups and see how it goes.

What do you think?

I think you have a good idea here.

You might want to expand into handyman types of jobs. We have a whole host of people out there who doesn't know how to use a screwdriver or a hammer. Hanging a picture is a major lift for them.

Hey, that's another idea -- assembling things that are flat packed or need to be put together. If the workman has a pickup truck, they could pick up the item and assemble it off-site or at the client's home.

Both of these ideas require a different class of workers. Your original idea sounds like it's more for skilled tradesmen -- plumbers, electricians, carpenters... You are talking about doing the marketing for those tradesmen.

Some of these simpler jobs, like the ones that I mentioned, could become a side gig for you to manage the jobs and workmen. Have you considered a multi-pronged approach? That way you don't have to make your entire income stream off of one business aspect.

 

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[klaipeda]

Hi Dave!

I think Andy is on the money here.

Firstly, you need to validate the service, by getting a home owner with an issue to upload the video.

Once you have a problem, you can manually do the leg work to call a tradie to offer to send them a lead for free.

As Paul Graham from Y Combinator once said 'do things that don't scale'

Too late for that. I have the web app working, and it is also scalable. The first approach I tried was using a chatbot on Facebook, but the limitation of Facebook motivated me to build the app. Now I have the core app and a naive AI that tries to analyse the videos (and sometimes it gets it right as well).

Once you know you have leads that convert.. ie, the client actually calls the tradesman to get the problem fixed, then you can start to build the automation.

Yes, now my focus is on getting the leads, and as I wrote in the post, I was asking if the strategy I have in mind can work.

Editing this post to say that your marketplace sounds super interesting! Congrats!

Mate, thank you. I didn't mention it, but I've been a finalist on a pre-accelerator program here in Australia. Also, I've been contacted by a startup that told me that they already validated what I want to validate, but it's not their core business.

I'm in an excellent position to build and maintain the web-app thanks to a couple of decades in IT, but at the same time, I'm very junior in marketing, and I cannot do everything. My request on the post was to have your thoughts on the marketing strategy, but I think I didn't express myself in the right way.

Thank you for your words

 

[Andy Black]

Ah, my bad. I missed it. What strategy are you going to test to generate leads?

 

[Davejemmolly]

Deleted this comment - as Original Poster is further along than I originally thought (and offered advice for)
Embarrassing!!

 

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[klaipeda]

I think you have a good idea here.

You might want to expand into handyman types of jobs. We have a whole host of people out there who doesn't know how to use a screwdriver or a hammer. Hanging a picture is a major lift for them.

Hey, that's another idea -- assembling things that are flat packed or need to be put together. If the workman has a pickup truck, they could pick up the item and assemble it off-site or at the client's home.

Both of these ideas require a different class of workers. Your original idea sounds like it's more for skilled tradesmen -- plumbers, electricians, carpenters... You are talking about doing the marketing for those tradesmen.

Some of these simpler jobs, like the ones that I mentioned, could become a side gig for you to manage the jobs and workmen. Have you considered a multi-pronged approach? That way you don't have to make your entire income stream off of one business aspect.

The brand category is "Home repair" and is the focus of the business.
A registered user in the platform needs to load a video and provide a place. There is no need to add more details; the web app I built recognise the objects in the video and transcribe the audio to understand the problem and define a category.

There are 12 categories available, and I've tradesman in the database to cover all. What I want to deliver is the wow-feeling. Make a video, talk like you would do with a friend, and the app thinks about everything else.

You'll get a quote with an estimate and an available appointment. A Uber-style service is my end goal.

My competitors ask the user to fill in a lot of data to get the right match for their needs. I removed all of that. It's like when you go to the doctor. You tell what you have, the pain you're feeling, using your own words. The doctor must make an effort to understand you and solve your problem.

I'm firmly convinced that we will see the forms disappear in the next ten years, and the interaction with the machines will be the same as talking with a human being. (Sarah Connor, it is time to run )

 

[klaipeda]

Ah, my bad. I missed it. What strategy are you going to test to generate leads?

Below is my strategy. I need a copywriter to get this done, and I have no experience in marketing, so I guess I need to delegate and focus on the app; otherwise, I need to learn how to manage the marketing. What do you think?

• landing page with 2 CTA for the customer:
  
  • 1) load a video
  • 2) subscribe to email to get updates. Not everyone has an issue to solve now. I want to keep the user and make brand awareness
• A "gumtree post" direct to who is looking tradesman that redirects to the landing page.
• Talk about the service on local groups on Facebook.

 

[Thinh]

Hey
As someone who built 3 marketplaces startups (2 failed, one who did OK) and having helped a SaaS marketplace startup building its offering, I know a thing or two about marketplaces.

From what I’ve read so far, you’re a bit too focused on the marketing gimmicks. Landing page, ads, copywriting, etc.
It might work, but to me it removes you from the true essence of « solving a problem / adding value »

Do you have anyone in your network that would be a user of your marketplace? Family, friends, colleagues, acquaintances, neighbor? These are your « leads. »

Try starting with that. If you can’t find a single person you know that is truly interested in your offering, it’s not facebook ads or whatever marketing campaign that will find them for you.

The 2 marketplaces I failed (one was for digital services, like Fiverr, the other to connect people having car issues with repairmen) , I did exactly that: copywriting, landing page, ads, funnels, retargeting, throw in every fancy marketing term here. I did it all. Spent about 10k, hiring people to post messages on boards, create articles, graphics, ads, etc… For extremely poor results.
The marketplace that took off—a pastry and cake marketplace—I started with friends and colleagues. I literally ask them in person, told them about it, some said it was great and they’d like to be customers, wham! One sale. I then found people that were good at making cakes on Instagram and Facebook in my region. Called them, told them I had buyers. They were sold. I took my car, did the delivery myself. Did this until it was taking too much time, THEN I created the MVP.

 

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[klaipeda]

Hey
As someone who built 3 marketplaces startups (2 failed, one who did OK) and having helped a SaaS marketplace startup building its offering, I know a thing or two about marketplaces.

From what I’ve read so far, you’re a bit too focused on the marketing gimmicks. Landing page, ads, copywriting, etc.
It might work, but to me it removes you from the true essence of « solving a problem / adding value »

Do you have anyone in your network that would be a user of your marketplace? Family, friends, colleagues, acquaintances, neighbor? These are your « leads. »

Try starting with that. If you can’t find a single person you know that is truly interested in your offering, it’s not facebook ads or whatever marketing campaign that will find them for you.

The 2 marketplaces I failed (one was for digital services, like Fiverr, the other to connect people having car issues with repairmen) , I did exactly that: copywriting, landing page, ads, funnels, retargeting, throw in every fancy marketing term here. I did it all. Spent about 10k, hiring people to post messages on boards, create articles, graphics, ads, etc… For extremely poor results.
The marketplace that took off—a pastry and cake marketplace—I started with friends and colleagues. I literally ask them in person, told them about it, some said it was great and they’d like to be customers, wham! One sale. I then found people that were good at making cakes on Instagram and Facebook in my region. Called them, told them I had buyers. They were sold. I took my car, did the delivery myself. Did this until it was taking too much time, THEN I created the MVP.

I think you're confirming what I'm doing here. My marketing strategy is straightforward:

• a landing page that explains precisely the value you get from the app
• the subscription to a newsletter to get the interested people not ready to make the video
• talking about the app in my network and in the socials

One thing I didn't mention. I found people that asked me about my app because they needed exactly what I was solving. When I talk to friends and people about my app, they would love to use it because it's easy and it's free. Someone says," this is what I'm talking about! No bullshit, straight to the point!" What a wonderful slogan :-D

My business idea came out reading the reviews of my competitors, and even if I do not have any customers now, I'm driven by their reviews.

Anyway, the first version of the landing page it's here. I need to change it a little bit because the business model it's different, but I think it's what I need.

@Thinh thank you a lot for your message. If you don't mind, I'll tag you in future if I need some help with the marketplace.

 

[Raja]

I'm sorry, but I have no idea how to affiliate for this specific problem I'm solving.

I mean if you couldn't sell the product with an affiliate blog, what makes you think just by building a marketplace you will be able to sell.

what I meant was start a blog in the niche of your marketplace, look for the products you want to sell on the marketplace, and ask them for an affiliate program or give a small commission for the sale, it will make you money and build your SEO.
after that, you could reinvest the money you earned and the expertise you gained for generating traffic will serve you well.

Consider Affiliate marketing as your MVP for the Marketplace you want to build.

 

[Thinh]

@Thinh thank you a lot for your message. If you don't mind, I'll tag you in future if I need some help with the marketplace.

sure

 

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[klaipeda]

I mean if you couldn't sell the product with an affiliate blog, what makes you think just by building a marketplace you will be able to sell.

what I meant was start a blog in the niche of your marketplace, look for the products you want to sell on the marketplace, and ask them for an affiliate program or give a small commission for the sale, it will make you money and build your SEO.
after that, you could reinvest the money you earned and the expertise you gained for generating traffic will serve you well.

Consider Affiliate marketing as your MVP for the Marketplace you want to build.

This is a strategy to consider. Thank you.