Focus on the Marketplace Flywheel

Success in marketplaces is not linear—it’s circular. One part feeds the next. This is often called the marketplace flywheel.

Here’s a simplified version:

1. More supply attracts more demand

2. More demand improves supply conversion

3. Better conversion increases transactions

4. More transactions improve retention and margins

5. Which attracts better supply

Each part of this cycle has measurable touchpoints. Map them out and define goals at each stage.