Chasing two rabbits exhausts everyone. You more so than the rabbits. Two sided markets are like chasing two rabbits. Often times you and your team is what ends up being wildly exhausted.
Two sided markets seem lucrative but they are often expensive ‘chicken or the egg’ challenges
Without massive resources two sided markets can be a complete and utter burden to try to take on. If you are trying to make something for plumbers to connect with house owners. Traditionally you’d have to try to attract both sides at the same time.
Two sided markets seem lucrative but they are often expensive ‘chicken or the egg’ challenges. You may see multiple market weak points where you could swoop in that satisfies these issues but one reason why it may be useless is because of the massive resources needed to tackle the problem.
Can you get both sides to the market at a comparable pace to one another?
Solution to the two sided market
Focus aggressively on one of the sides and ignore the other
In regards to tech this is one of the easiest solutions to the two sided market. Create a tool that one side will use. Draw them in with the features of the tool. Treat it as a quasi SaaS like environment. Then once you have successfully sustained enough of one side attempt to tackle the marketplace.
You will know if you have the resources to tackle a full on marketplace because if you can maintain a respectable churn on the one side. Bringing on the other will be that much easier.
Chasing two rabbits exhausts everyone. Instead chase one aggressive. Then use that rabbit to draw the other in.