The 4 Key Platform Economy Business Models, Marco Torregrossa, CEO at Euro Freelancers

1. The 4 Key
Platform Economy
Business Models

3. Get What You Need from Each Other
PlatformProducers Consumers
SUPPLY
Products
Services
Data
Skills
Money
Property
News
Content
Apps
DEMAND
Individuals
Big Orgs
Small Orgs
Governments
Machines
Asset light
Nearly-zero marginal costs
Network effects
Source: NewGrowthPlaybook.com

5. Trainers (T) Gym (G) Users (U)
Reinventing the Gym as a Platform (B2C)
@MarcoTorreg

6. Gym
(Intermediary)
Trainer
(Supply)
G hires T at his/her rate
G rents out T at employee
rate + project costs
Bypassing Risk
Pipeline Model (Subcontracting)
Linear, centralised and one-way value creation. No network effect.
@MarcoTorreg
User
(Demand)

9. U sets terms
+ budget, and pays T
T accepts terms (no bidding)
on the basis of his/her rates
Transitional Model (Concierge)
G charges U a service
fee for the matching
Value creation is decentralised, usually manual matching. Minimum network effect.
@MarcoTorreg
Gym
(Facilitator)
Trainer
(Supply)
User
(Demand)

12. U sets terms + budget
T bids on the basis of his/her rates
G releases money to T
with a 5-20% commission
2-Sided Platform Model (Commission)
G collects the T fee from U
without commission
Value creation is decentralised, and continuous. Network effect kicks in.
@MarcoTorreg
Gym
(Enabler)
Trainer
(Supply)
User
(Demand)

15. U sets terms + budget
T bids on the basis of his/her rates
G releases money to T
with a 5-20% commission
Multi-Sided Platform Model (Commission)
G collects the T fee from
U without commission
Value creation is decentralised, and continuous. Network effect kicks in.
@MarcoTorreg
Gym
(Orchestrator)
Trainer
(Supply)
User
(Demand)
Gym Equip.
Supplier
Gym Equip.
Supplier
Gym Equip.
Supplier
GS lease equip.
to T at no cost
G releases
money to GS
with a 5-20%
commission

18. G collects from U a monthly / yearly fee
based on frequency of use or services desired
G releases money to T,
without a commission
U searches for T by skill, location, portfolio
(within the limits of the subscription plan)
T bids on the basis of his/her rates
Advanced Platform Model (Subscription)
Value creation is decentralised, and continuous. Network effect scales up.
@MarcoTorreg
Gym
(Enabler)
Trainer
(Supply)
User
(Demand)

21. Other Platform Business Models

22. Listing Fee
Fee charged to suppliers when they post new listings
or when listings are featured on top
(e.g. Ebay)
@MarcoTorreg

24. Lead Fee
Customer posts a request on the platform, and
providers will pay a fee to bid for the customer
(e.g. Homelight)
@MarcoTorreg

26. White Label
Sell/license a platform that buyers can customize
and use (e.g. getable)
@MarcoTorreg

28. Re-Sale
Buy unwanted good and re-sell them at higher value
(e.g. second hand or recycling marketplaces)
@MarcoTorreg

30. Crowdsourcing
Buy micro-tasks and sell them as bundle
(e.g. Mechanical Turk)
@MarcoTorreg

32. Token Based
Crypto incentives and blockchain governance
(e.g. Open Bazaar)
@MarcoTorreg

34. Platform Cooperative
Financial value of the platform is own and
distributed among users and workers
(e.g. Fairbnb)
@MarcoTorreg

36. Takeaways: Pipes Vs Platforms
 Ecosystem is the new supply chain
 Network effect is the new economy of scale
 Data is the new currency
 Community management is the new customer service
 Trust and reputation are the new quality control
 User experience is the new sales funnel
 Engagement is the new loyalty program
 Escrows are the new payment systems
 Algorithms are the new decision makers
Adapted from: The Platform Manifesto, Sangeet Paul Choudary

38. Best Ever Example of a Platform?

40. Sign up to our Executive Education Sessions, available from 3 hours to 3 days
Dig Deeper into Platformania
 Platform Design
 Platform Launch
 Platform Monetization & Pricing
 Growth Hacks
 Third Party Integrations & APIs
 Platform Building Software
 Public Policies
 Platform Funding
 Platform Internationalisation
 New Platforms (Blockchain)

41. Marco Torregrossa
marco.torregrossa@euro-freelancers.eu
about.me/marcotorregrossa