Main takeaways: - Building products that serve consumer needs - Building products that serve both business and consumer needs - The 3 sided marketplace (e.g. consumers, video creators, advertisers) - Building products in a C2C marketplace

1. www.productschool.com
Consumer Products as Multi-Sided
Marketplaces by fmr Facebook PM

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5. Stephen Song
T O N I G H T ’ S S P E A K E R

6. Overview
1. When to think about consumer products as
marketplaces
2. Marketplace liquidity - what is it and why it’s
important
3. Using market liquidity to balance user needs in
two vs. three sided marketplaces

7. Bot Prevention @ Shopify Follows @ Instagram Creator Monetization @
Facebook
Growth @ Grailed

8. Marketplace Basics

9. Traditional Marketplace
Buyers Sellers
Moat
=
Network Effects
Buyers benefit from more sellers
Sellers benefit from more buyers

10. Traditional Marketplace
Buyers Sellers
Buyers benefit from more sellers
Sellers benefit from more buyers

11. Traditional Marketplace
Diners Restaurants
More diners attract more restaurants
More restaurants attract more diners

12. Marketplace Basics
There are a few key components of a marketplace
1. Has strong network effects
2. Community does most of the work
3. No physical constraints on growth
4. Often very capital efficient

13. 1
3
Usually, we think about consumer products as B2C or C2C.
When we’re building these types of products, we always
focus on solving problems for a set of users.

14. Typical Consumer PM Doc
1. Goal
2. Users
3. Problems
4. Solutions
5. Priorities & Timelines
6. Tradeoffs & Risks

15. As products grow, and monetization becomes increasingly
important… we can think about some consumer products as
a multi-sided marketplace.

16. This is valuable because it helps you balance the needs of
different users of your product.

17. Traditional Marketplace
Buyers Sellers

18. Non-Traditional Marketplaces

19. Three Sided Marketplace
Consumers
CreatorsAdvertisers
Content Platform

20. Marketplace Liquidity
The efficiency in which a marketplace matches buyers
and sellers on its platform.

21. Liquidity is King
Liquidity is when supply meets demand, which
translates into the biggest “AHA!” moment on both
sides of the marketplace.

22. Liquidity is King

23. Uber Pricing
Riders Drivers

24. Uber Pricing

25. Why Should You Care?
The concept of liquidity can be applied to product
strategy in a way that helps you balance the needs and
tradeoffs of different users.

26. How to optimize liquidity

27. Buyer / Seller Marketplace
1. Discoverability - Improve on the demand to
meet the supply, or vice versa
2. Trust - Make sure users feel confident
transacting on your marketplace
3. Scale - Grow the number of buyers & sellers to
increase network effects and create a moat

28. Two Sided Example
Buyers Sellers
Moat
=
Network Effects
Buyers benefit from more sellers
Sellers benefit from more buyers

29. Consumers Creators Advertisers
● Wants interesting
content
● Dislikes too many
ads
● Wants to grow their
fan base
● Wants to make
money
● Wants to reach
consumers
● Wants good return
on ad spend
User Needs for a Content Platform

30. Content Platform
1. Discoverability - Improve on the demand to meet the
supply, or vice versa
2. Trust - Maintain strong user sentiment, ad performance &
creator payouts
3. Scale - Grow the number of creators & consumers to
increase ad opportunities without disrupting sentiment or
ad performance

31. Content Platform
Consumers
Content
Creators
Advertisers

32. Summary
1. Marketplace dynamics can apply to products that
aren’t traditionally viewed as marketplaces
2. Liquidity is king!
3. Variations of discoverability, trust and scale can
help you optimize liquidity

33. www.productschool.com
Part-time Product Management Training Courses
and
Corporate Training