How can I handle disintermediation?

There are so many considerations when building a marketplace, but one of the top considerations to address is disintermediation.

Disintermediation is when the supply and demand side of your marketplace continue working together without your support as a middleman. For example, if a house cleaner and a homeowner meet each other through an online marketplace and they then exchange phone numbers they can switch to cash transactions. This means that the marketplace no longer has the ability to take a cut and make money on this relationship.

There are ways to avoid or handle disintermediation, but it varies depending on the type of marketplace. One way that a jobs marketplace handled disintermediation was by offering value added services. One such service was insurance, which covered workers when they were on-site with an employer. The insurance burden was much greater for employers to handle on their own when compared to the cost associated with our marketplace services so they stayed on the platform as a result.

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