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Key Growth Lessons: 1. Building a linear business to seed the supply-side of a marketplace can solve the chicken or the egg problem most marketplaces face. The fundamental challenge of building a marketplace is solving the chicken or the egg conundrum of which comes first. We all know supply is key, but how do you build it if you don't have demand? Building both at the same time is hard! Omni took a creative approach to solving this problem by building and monetizing their "storage as a service" business first, hitting critical mass, and then layering on the marketplace, seeded with supply from day one. 2. Layering a marketplace on top of an existing business supercharges linear growth and creates a moat around a commodity business. Not only does a linear business seed marketplace growth, but marketplace growth in turn feeds the foundational business. It's a self-reinforcing cycle that once spinning is hard to disrupt. As Omni generates marketplace demand, they are finding that storage customers store more stuff. This supercharges growth.

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    Susan Su

    over 2 years ago #

    I had no idea how smart Omni is in strategically building out their marketplace. It's incredibly easy to make mistakes (especially when combining online + offline) in a marketplace's earliest days, but I think this will be one of the rare companies that cracks the case.