Developing a growth model + marketplace growth strategy | Dan Hockenmaier(Faire, Thumbtack, Reforge)

Dan Hockenmaier is an expert on marketplace strategy and growth. He was previously the Director of Growth at Thumbtack as well as a partner at Reforge, where he co-created the monetization track. Currently, he is the Head of Strategy and Analytics at Faire. In today’s episode, Dan shares the building blocks of a growth model, important considerations when building your growth model, and how to get started. We also chat about retention best practices, the complexity of building a marketplace, the future of marketplaces, and when it makes sense to add a SaaS business to a marketplace, and vice versa.
Find the full transcript here: www.lennyspodcast.com/develop...
-
Where to find Dan Hockenmaier:
• Twitter: / danhockenmaier
• LinkedIn: / dan-hock
• Website: www.danhock.com/
-
Where to find Lenny:
• Newsletter: www.lennysnewsletter.com
• Twitter: / lennysan
• LinkedIn: / lennyrachitsky
-
Thank you to our wonderful sponsors for making this episode possible:
• Amplitude: amplitude.com/
• Flatfile: www.flatfile.com/lenny
• Eppo: www.geteppo.com/
-
Referenced:
• Reforge: www.reforge.com/
• Casey Winters on Lenny’s Podcast: podcasts.apple.com/us/podcast...
• Faire: www.faire.com/
• Dan’s blog post on the future of marketplaces: www.danhock.com/posts/the-fut...
• Careers at Faire: www.faire.com/careers
-
In this episode, we cover:
(00:00) Dan’s background
(04:01) What is a growth model?
(07:20) The building blocks of a growth model for your own business
(10:22) The value in building your own model
(11:12) The importance of retention over growth
(14:49) Getting started building your model
(19:18) The growth model at Thumbtack
(20:36) The importance of the early user experience for retention
(25:02) Why is a marketplace a good business?
(28:23) Health metrics for marketplaces
(33:47) Supply and demand, and why you shouldn’t neglect demand
(36:23) The role of ROI equations and how to use them
(39:16) Why you should tread lightly when working with marketplaces
(42:43) Expanding marketplaces
(46:50) How marketplaces can add a SaaS offering, and why adding a marketplace to a SaaS business is trickier
(49:47) When is there an opportunity to unbundle?
(54:43) B2B marketplaces
(56:36) What is fragmentation?
(58:46) The future of marketplaces
-
Production and marketing by penname.co/. For inquiries about sponsoring the podcast, email [e-mail].

[@wahidkhalid1]

Thank you for this gem Lenny! :D

[@vaibhavonline112]

Hi Lenny, one of your best episodes for me. Packed with insights. Loved Dan's nonchalance and your interjections :)

[@user-rm2in9bp8d]

invaluable content thank you, I am taking a great deal of notes!

[@wemote]

Ughhh just hit play and can't wait to dig into this!!

[@ACCA2016]

What is growth model for market place? The video discuss a lot of things but I can’t connect them well with mind mapping due to my understanding of growth😂

[@evancox9583]

Great podcast! Always something new to learn here. The notion that once you have 100% commission on an item, you're no longer really a marketplace...mind blown. Keep em' coming!

[@telebiopic]

There is a model-building obsession amongst ex consultants, unfortunately these models have less than random shot at predicting success and growth, as evidenced by inordinate amounts of venture failures. Better alternatives will be to do some logical consideration of strategic choices, understand emotions & positioning, and GTM based on field research.

[@lvernon9471]

As someone brand new to growth, I need a glossary for all the acronyms used in this video. If anyone knows all of them, please let me know!

[@niamhocallaghan4959]

is there a transcript for this?

[@LennysPodcast]

Yes, coming in the next few days here: www.lennyspodcast.com/developing-a-growth-model-marketplace-growth-strategy-dan-hockenmaier-faire-thumbtack-reforge/

[@johnnysanchez8709]

👏👏

[@xilluminati]

33:05 Blue dot on Lenny’s hand
46:59

[@LennysPodcast]

lol that is weird! hadn't noticed that before. Will investigate.

[@LennysPodcast]

Looks like it was an export issue, still unexplained, but sadly can't update the video, so the blue dots live on.

[@xilluminati]

@@LennysPodcast haha! I appreciate you replying, an honor indeed. Wanted to call it out on the off chance that it’s an Easter egg

[@LennysPodcast]

@@xilluminati 🐇

[@JasonBauder-ki9ji]

Was it Dan's idea to sell the fake leads?

[@telebiopic]

25:41 almost all venture businesses that started as a marketplace have failed. Such businesses need to start as transaction business. No amount of modeling can avert failure if the transaction ‘experience & incentivize’ doesn’t create value/difference in the minds of the user.

[@sojibrajii]

Hi friend,
Are you looking for a professional UA-cam thumbnail designer?