This document provides guidance on starting an online marketplace. It discusses Udemy, an online marketplace for courses with millions of students and thousands of courses. The vision is to let anyone learn anything online. Key aspects of building a successful marketplace include technology, community, brand, operations, and network effects. The document discusses designing the marketplace, centralization vs decentralization, getting initial traction through early supply and demand, focusing on segments, and leveraging success stories and third party channels for early growth.

1. How to Start a Marketplace!
Eren Bali, Chairman & Co-founder of Udemy!

2. !
Marketplace for Online Courses

3. ents
Million
shed Courses
Thousand
ses Completed
2 Million Hours
ed
8 Million

4. Why!

7. Desire To Learn + Internet = Hope!

8. The Big Vision!
Let Anyone Learn !
Anything Online!

9. Let Anyone Learn Anything Online!
100’s of Millions of
People Around The
World
100’s of thousands of
different subjects,
different languages

10. Marketplac
Technology!
Community!
Brand!
Operations!

11. … and also!
Strong Network Effect!
High Competitive Barrier!
Scalable Business Model!
Blah blah!

12. Designing a Marketplace!

13. he Service Chain!
Connect Supply & Demand: Marketplace + Supply!
Discovery: Decentralized vs Curated vs Centralized!
Pricing: Decentralized vs Centralized!
Payment: Decentralized vs Centralized!
Service / Product: Supply!
Customer Experience: Decentralized vs Centralized!
Support: Decentralized vs Centralized!

14. Centralization vs Decentralization!
tralized Ce

15. The Spawn of Craigslist!

16. Getting Initial Traction!
?
?
(a.k.a. solving the chicken-egg problem)!

17. Liquidity isn’t the most
important thing.
It’s the only thing.
Simon Rothman, Greylock Ventures

18. Do Things That Don’t Scale!
Paul Graham, YCombinator

19. ake The Chicken!
rovide value via
uration and user
xperience

20. e Your Own Supply!
(First 3 paid courses on Udemy. They were created by us)

21. ocus on a Segment à Expand!
bay: Collectibles
acebook: Harvard
elp: Restaurants in San Francisco
ber: Luxury & San Francisco

22. ave Your Supply Bring Demand!

23. reate Success Stories!

24. More Early Growth Ideas!
Provide a Utility Function!
– OpenTable!
Leverage 3rd Party Channels for Distribution!
– Udemy à Daily Deal Sites and Newsletters!
– AirBnb à Craigslist!
Provide a Magical Experience to Early Users
(Tip: Doesn’t Need to Scale)!

25. Once You Have Critical Mass!

26.
enjoy it ;)
!

27. dditional Reading!
http://techcrunch.com/2012/08/19/how-to-structure-a-marketplace/!
http://firstround.com/article/How-Modern-Marketplaces-Like-Uber-Airbnb-
Build-Trust-to-Hit-Liquidity!
http://abovethecrowd.com/2012/11/13/all-markets-are-not-created-equal-10
factors-to-consider-when-evaluating-digital-marketplaces/!
http://cdixon.org/2012/11/23/some-problems-are-so-hard-they-need-to-be-
solved-piece-by-piece/!
http://thegongshow.tumblr.com/post/345941486/the-spawn-of-craigslist-like
most-vcs-that-focus!
http://www.forbes.com/sites/groupthink/2013/04/02/how-to-grow-a-
marketplace/!
http://growthhackers.com/companies/belly/!

28. Thanks!
@erenbali!