Sunday, March 19, 2023

In Business Terms, Platforms Make Money on Transactions, Not Retailing

Platform business models typically involve a few essential roles, according to Angus Ward, Beyond Now CEO. A platform owner orchestrates the “exchange of value” operations. There are “producers” who supply capabilities, “providers”  who own customer relationships,  and “customers” who buy capabilities. 


In many cases, buyers can be sellers and sellers can also be buyers. In some cases the platform might also be a producer of its own branded products. 


source: BeyondNow 


The key point is that the business model is based on facilitating transactions, and acting as a market maker or facilitator, rather than a retailer.


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