Publication number: ELQ-80377-1
View all versions & Certificate
Two-Sided Marketplace Financial Excel Model
Excel Model and Explanatory PDF for a 2-Sided Marketplace focusing on a shared economy platform.
2-Sided Marketplaces can be difficult. There's 2 different customers and 2 revenue streams, and both these segments have different factors that will have an impact on their performance, like growth or conversion.
This 2-Sided business model focuses on a shared economy platform that has multiple additional revenue streams.
(listers, renters, advertising revenue, featured listings, strategic partnerships)
Once each revenue stream was outlined, the next part entailed breaking down the most essential part for each item.
E.g. For something like featured listings, you should take into account how many you're beginning with, the price per month, and the growth rate for a featured listing.
To start off with, the focus was on the 2 most important parts of the equation- the listers and renters. For the renter part, average revenue per account, average frequency per account, growth rates, active users, conversion rates, the commission off each booking and site traffic are all included in this model. Off the back of this, monthly revenue was able to be calculated easily and month-over-month growth was applied using growth and conversion rates.
After connecting that with this venue side, frequency of bookings per venue was able to be assessed. If you assume an average revenue per account of $250 with 7.5% commission each for lister and renter, projected revenue for the month can be calculated.
This model allows you to work separately with each growth rate, and show renters growing slower than listers or vice versa. As well as this, you can isolate specific items in each, like the conversion rates for users or the frequency each venue is booked. The rate of the rates is even included.
Over time does the growth rate slow down? Does rate of user conversion increase?
The rest of the model has the same idea: outline assumptions, input, solve equation. After you understand the basic concepts it becomes easier to add additional streams as you go.
This model won't work in every case, but it seems to work pretty well for most 2-Sided Marketplace scenarios. It can also be easily modified for future financial projection projects.
Some things still need to be added. e.g. this model currently only works out revenue. In the future, a cost sheet and profit projections will ideally be implemented, whilst tying in things like marketing costs and the cost of user acquisition. For now it can be modified for personal use.
This Best Practice includes
1 Downloadable 2-Sided Marketplace Model
Justin Potts offers you this Best Practice for free!
download for free
Add to bookmarks
4.6 / 5 (88 votes)
- Rate this Downloadable Best Practice
Write a review
- Morri Baridi(last updated: 24/10/2021 17:05)
- Benedict(last updated: 09/05/2021 10:26)
- Naveed Khaliq(last updated: 25/04/2021 05:14)
- Dr. Asim Imdad Wagan(last updated: 11/04/2021 15:33)
- Teboho Mabe(last updated: 27/02/2021 08:14)
- Ibironke Owobo(last updated: 01/12/2020 12:20)
- Thanh Tung Nguyen772(last updated: 23/11/2020 10:19)
- Aida Kandil(last updated: 03/10/2020 21:36)great doc! what does AFPA stand for?
- Ahmad Suhendro(last updated: 03/10/2020 13:41)
- Christoph Heidelberger(last updated: 29/09/2020 06:03)
- Danielle Kauffman(last updated: 13/08/2020 05:16)
- Gavin Pirie(last updated: 07/07/2020 09:49)
- Shereef Jinadu914(last updated: 29/06/2020 09:34)
- Haider Navid(last updated: 20/06/2020 16:00)
- Ezana Haddis(last updated: 13/06/2020 18:34)
- Joseph Solomon(last updated: 11/03/2020 09:22)
- Vic Paiano(last updated: 23/02/2020 17:37)
- NY007(last updated: 16/02/2020 13:29)
- Serge Pestau(last updated: 14/02/2020 09:34)
- Daniel Martínez Monska(last updated: 29/01/2020 16:10)
- Dennis Kariuki(last updated: 24/01/2020 11:55)
- Pornthip(last updated: 17/01/2020 03:19)
- Denis AX(last updated: 08/01/2020 12:59)
- Fernando Vargas(last updated: 09/12/2019 18:10)
- thom Berglund(last updated: 30/11/2019 14:56)g<
- Pradyumn Singh(last updated: 15/11/2019 11:26)
- Cac Nguyen(last updated: 15/11/2019 08:40)
- Nguyen Le Hoang567(last updated: 28/10/2019 07:44)
- Isaac Agbedam(last updated: 19/10/2019 18:42)
- Soraia Brazão Pereira(last updated: 15/10/2019 03:37)
People using this Best Practice also downloaded
Startup Financial ModelA very simple financial model template that can be used to project website revenue.revenuefinancial modelstartupsearly-stageinternet3,805add_shopping_cart
SaaS Model - Net Present Value for Simple Web BusinessA simple NPV model for you to evaluate the likelihood of success for your businessgrowthrevenuefinancenpvfinancial model3,063add_shopping_cart
Ecommerce Financial Model, built in CausalModel an ecommerce or transaction business using key order metrics to create probabilistic forecasts.financial modelstartupsecommercetemplatecommerce1,259add_shopping_cart
Saas Budget TemplateTry Saas Financial Projection. This well-tested, robust, and powerful template is your solid foundationfinancial modelstartupsraising capitalsaassoftware as a service3,219add_shopping_cart
SaaS Excel Financial Plan TemplateA SaaS financial plan that allows you to create your own financial forecast. Suitable for startups and SMB's.financial modelstartupssaasfinancial planexcel2,029add_shopping_cart
Runway and Cash Budget Template for Excel and Google SheetsThree year financial model template for Excel + Google Sheets to plan expenses, build a cash budget and forecast runway.budgetfinancial modelstartupsownershipcash budget3,020add_shopping_cart
FMCG (Fast Moving Customer Goods) Business Model in Excel - Management ConsultingFinancial model for a FMCG business in Excel that can be used during consulting projects - eg: due diligencevaluationfinancial modelstartupsfinancial modelingmanagement consulting5,759add_shopping_cart
Early Stage SaaS Financial ModelGet up to speed on a SaaS Financial Model with a template and its step by step instructionsfinancefinancial modelentrepreneurshipstartupsearly-stage7,417add_shopping_cart
Redfin-Based Financial Model TemplateBrowse through Redfin.com's adaptable Financial Model. Find what brought it to success.financial modelentrepreneurshipstartupsfive year projectionsmonthly financials1,981add_shopping_cart
Freemium Business ModelCustomize a ready-made financial model for your Freemium Web Services Businessfinancemodelingfinancial modelstartupsventure capital4,406add_shopping_cart
Any questions on Two-Sided Marketplace Financial Excel Model?
The user community and author are here to help. Go ahead!