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CH6, Charging Transaction Fees, charging all users, charging for access,…
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- Charging Transaction Fees
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why it works
• Users only pay when they use the service, which encourages people to join.
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challenges
Off-Platform Deals
Buyers and sellers may connect through the platform but complete transactions elsewhere to avoid fees.
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solutions
• Platforms like Fiverr limit direct contact by using reviews or pre-set deals to avoid off-platform deals.
• Others, like Upwork, offer tools to monitor and manage projects or payments, adding value to both buyers and sellers.
Works for exclusive platforms (e.g., country clubs) to maintain quality.
Rare, as it can deter participation.
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by charging third parties (like companies) to access their user community, while keeping the platform free for regular users.
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- charging for enchanced access
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how it works:
Producers can pay for tools like better visibility, targeted ads, or direct connections to valuable consumers.
ex, Yelp lets restaurants pay for top spots in search results.
wht it's effective
The platform stays open to all users, but those who pay can get extra advantages.
If done right, it doesn’t harm user trust because paid content is clearly marked (e.g., "sponsored").
risk
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• Platforms like Facebook faced criticism for reducing free services to push paid options, which hurt their reputation.
- charging for enhanced curation
make money by charging users for access to carefully curated, high-quality content or services.
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how it works
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why it works
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The platform earns recurring revenue while still benefiting producers (e.g., teachers on Skillshare earn royalties).
- charging one side, subsidizing the other
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- charging less for price-sensitive users
Identify and discount for users likely to leave if charged, ensuring network growth.
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- Avoid Charging for Existing Free Value
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Ensure promised quality, as failing to deliver (e.g., Uber’s “Safe Rides” fee controversy) erodes trust.
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For example, transaction-based platforms must ensure control over transactions and user data.
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:crown:G2 :crown:
IBS M1 Abby :princess:
IBS M1 Cheryl :princess::skin-tone-2:
IBS Y3 Justin :prince::skin-tone-4:
IPCM Y3 Lian :princess::skin-tone-3:
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