With over 43% of the workforce in the US will be freelancers or self-employed by 2020. A service marketplace is an online platform which initiates, facilitates, coordinates and completes buying and selling of services between service seekers and service providers.
The different business models in the service marketplaces are based on pricing or payment models:
Transaction Based Model: The marketplace charges a percentage of fee on each transaction. In this model, there is no upfront cost of listing and encourages more suppliers to join the platform, thus increasing the marketplace’ supply.
Lead Based Model: In a lead based model, suppliers pay-per-quote for matching with the customers. The model of having suppliers pay to bid on a project results in more qualified options and the best way for the customers to find the right supplier
Subscription Based Model: The marketplace offers a range of subscription plans at different price points based on the frequency of use or number of products/services listed. Here, the marketplace can enable subscription both at the customer or supplier end, where they are billed on a recurring basis and receive their services at the same time on a preset basis or as per their convenience.