24 Jul Market Networks are the next Big Thing
Did you ever hear the term “Market Network”? If not – you should have a close look on the following blog post because Market Networks are becoming the new trend or as James Currier puts it: ‘The Next 10 Years Will Be About Market Networks’. These specific networks are going to create a new class of unicorn companies and will have an impact on how millions of professionals are going to work, connect and make their living, since there are plenty of opportunities for these Market Networks to exist in all possible industries.
But what are actually Market Networks?
To start with, it is a word creation from Marketplace and Social Network. A Market Network includes elements of both worlds. In other words, marketplaces such as Amazon or Airbnb simply provide a platform on which providers and customers can find each other. One customer can interact with multiple providers and one supplier can interact with multiple customers. It’s a n-n relationship. Whereas a social network allows each participant a 360-degree interaction with potentially all other participants
Now Market Networks come into play. They connect online marketplaces with the 360-degree interaction of a social network and thus develop significantly more power. In the beginning there were communication networks like telephones and email. Afterwards we had social networks like Facebook and LinkedIn. But now we have Market Networks like HoneyBook, AngelList, DotLoop and World Travel Nation.
To summarize it – Market Networks are:
- A social network: Professionals create profiles, use profile pages to showcase their work and demonstrate their credibility. They also connect with each other, build relationships and foster collaboration.
- A marketplace: Professionals come together on one digital place to find other parties with whom they can do business to offer their services or to benefit from special deals.
- In many cases also a powerful SaaStool: Professionals use the tools on the top of the marketplace to negotiate, collaborate, do the job, or manage their paperwork.
What’s so special about Market Networks?
First of all, they offer the potential to reorganize existing informal networks and business relationships, make them transparent and digitally available, which means they bring a career’s worth of professional connections online and make them more useful. Many of the people in professional networks have been transacting with each other for years using fax, checks, emails, overnight packages, and phone calls. Social networks in turn, like LinkedIn and Facebook, have helped built long-term relationships. However, until Market Networks, they hadn’t been used for commerce and transactions.
Second, in the industries where Market Network can play a game changing role, referrals are gold, for both client and service professionals. The Market Network is designed to make referrals simple and more frequent.
Third, Market Networks represent a different way to do business compared to sites like eBay or Uber that simply aggregate demand. In that model, neither the seller nor the customer matter. But what if the service provider and client do matter actually? What if you want to do business with a very specific person? So, in the end it’s not just about a transaction, like on a less complex marketplace, but about a whole chain of transactions – bundled into a unique customer experience. For this reason, Market Networks focus on more complex services and interactions – the types of services that require more human collaboration or benefit from being part of a network.
Fourth, they promote the service provider as a differentiated individual, helping to build long-term business benefits and are elevating each person, their reputation as well as their values.
Over time, nearly all independent professionals and their clients will conduct business through the market network of their industry. We’re just seeing the beginning of it now. It is therefore very likely that a number of new start-ups will start with this concept and set about transforming existing markets completely. That’s why World Travel Nation was built to fill this gap for the tourism industry with many more features to come in the near future to promote interaction and collaboration. So do not waste your time any longer and join us today!
Maximilian Auerbach holds an Ms. in Engineering. His passion is travelling and exploring different countries and cultures. With his experience he supports our team in the IT field and brings in new ideas that make World Travel Nation the best tool for all our members.