6 Most Efficient Marketplace Business Models To Boost Revenue -Stackgeeks

Funneling your business in a competitive marketplace is always a long-term project, and you also need to know about Business Models To Boost Revenue. Due to technological advancements and constant changes, there are always ifs and buts for your business to succeed. It is necessary to have funding for its growth and maintenance.

More importantly, the subsequent funding you look for should come from customers of your website. And this emphasizes the importance of top marketplace business models to boost your revenue.

To build a sustainable and successful marketplace platform, a suitable revenue model is vital. That’s why many startups fail; they don’t make valid business model choices.


Business Models To Boost Revenue


We have compiled a list of six distinct top marketplace business models to boost your revenue.

  1. Pay per Lead Model
  2. Nominal Fee Model
  3. Freemium Business Model
  4. Commission Integrated Business Model
  5. Premium Business Model
  6. Sponsor Listings and Advertisements
  • Let’s take a look at them.

Pay per Lead Model

In this model, the vendor pays upfront either for an individual deal or a list of prospective customers. Then only you will be able to access the customer’s full details.

For instance, an education aggregation has 1,000 leads for medical coaching. Details include student’s names, their classes, coaching preferences, areas of interest, etc. The medical coaching institutes will only be able to access such details if they pay the aggregator whatever both parties agree.

Also, the good aspect of this business is that vendors pay only when they have some sort of surety. In the above cases, the aggregator can send 10 to 20 demo leads to gain the trust of vendors.


  1. A better value proposition than other models
  2. Confirmation of assured leads before payment


  1. It works only when the lead is the revenue driver of such a business niche
  2. Only for B2B and B2C services

Nominal Fee Model (One of the best Business Models To Boost Revenue) 

This type of revenue model charges its sellers for each offer they list on their platform. While posting new listings, the provider has to pay a certain fee to that marketplace.

This marketplace business model to boost revenue works only if the value per listing is large. More so, the providers of the website receive certain payments based on the number of listings on their site. And sellers earn on the principle of the scarcity of resources.

Facebook Marketplace, Poshmark, Mercari, etc. are some examples of such business models.

Freemium Business Model

This is one of the few marketplace business models to boost revenue that combines both free and premium features. Essentially, their core offering is free, and they only charge for value-adding features. More so, the feature should be something the customers are crazy about.

For instance, Olx is one of the prime examples of such business models. Their core offering is free, i.e., users can sell free of charge to each other. But Olx premium services, such as 4x visibility and premium ad boosting, have enabled them to monetize.


  • Users are hooked on services
  • Positive reviews due to core-free offerings


  • It is difficult to find an equilibrium between paid and feature services
  • More chances of online fraud

Commission-integrated Business Model (One of the best Business Models To Boost Revenue)

This is one of the favorite marketplace business models to boost revenue in the online marketplace. In this model, the marketplace charges a certain fixed fee for its services and deducts it at the time of customer payment. thus earning a commission out of vendors’ sales to customers.

Uber, BigBasket, Fiverr, Airbnb, and Zomato are examples of such business models.

Premium Business Model 

The premium business model platform charges a recurring fee to access the services of its marketplace. It may or may not charge the same to all users of its marketplace.

Also, this revenue model works on a cause-and-effect basis. If the value the platform is providing is high, then the user tends to engage in several more transactions. Besides, brand image is an important factor for businesses using this model.

Dating sites like OkCupid or Tinder use such top marketplace business models to boost revenue. B2C examples would be Prime Video and LinkedIn.


  • A simpler model to achieve
  • The user base is loyal


  • Mandatory payments may stop future users
  • Need a convincing purpose to subscribe to such apps

Sponsored Listings and Advertisements (One of the best Ways for Business Models To Boost Revenue)

This business model typically offers free listings on the platform, but listers who want more visibility will have to pay. Generally, in these types of businesses, sponsored listings bring more attraction and space to vendor listings.

The vendor’s sponsor listings are featured on the site’s homepage as well as in other areas. However, a seller has to pay an additional fee for paid listings. Businesses like Zomato effectively use this model in combination with other ones.

Conclusion for Business Models To Boost Revenue

This is a fact; no business model can say perfectly which business model fits their size.

There are so many business models used now by modern eCommerce places. Usually, businesses initially stick to one revenue model and then, in later stages, keep chopping and changing. Also, many use a combination of two or more models for their businesses.

Get in touch with stackgeeks and we are more than happy to help you determine which revenue stream is right for your business

November 30, 2021
Project Manager at Stackgeeks

Prince Singla

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