Directory vs Marketplace: The Platform Business Model Bible

After numerous years in the WordPress “listing directory” space, I can fairly say this statement: almost no one realizes they’re building a marketplace when they think they’re building a directory—or vice versa.

After working with hundreds of founders and talking with thousands more in groups and communities, I can confirm this confusion is nearly universal. I was even misled myself for many years, not truly understanding what we were actually building and simply following theme structures without realizing we could easily transition to more suitable revenue models for our specific use case and niche.

The consequences are serious. I’ve spoken with hundreds of early-stage founders who’ve gone down expensive rabbit holes, hired the wrong developers, or built features that fundamentally contradict their actual business model—all because they couldn’t clearly define whether they were building a marketplace or a directory. When they finally stumble across WordPress “listing directory” themes, the common response is a frustrated “What the hell does ‘listing directory’ even mean?”

ThemeForest and other marketplaces have accidentally created an ecosystem of confusion by lumping everything under the vague “listings & directories” category. This misleading classification has left countless entrepreneurs unable to properly research their business model, find relevant examples, or make informed technical decisions.

Understanding this distinction isn’t just semantic nitpicking. It’s possibly the single most important piece of information you need during your early startup phase. Knowing whether you’re building a marketplace or directory will:

• Clarify your revenue model options
• Determine your technical requirements
• Guide your regulatory compliance approach
• Help you find relevant case studies and inspiration
• Enable you to learn from similar platforms’ mistakes

This guide cuts through the confusion that has derailed so many promising platform businesses. By the end, you’ll have absolute clarity on whether you’re building a marketplace or directory—knowledge that will save you months of misdirected effort and thousands in wasted resources.

Understanding Your Platform Type and Optimal Revenue Strategy

Before selecting a revenue model for your platform, you must first accurately determine whether you’re building a marketplace or a directory. This foundational distinction shapes everything from your technology requirements to your monetization options and long-term scalability.

This comprehensive guide will help you:

1. Identify whether your concept is best suited for a marketplace or directory model
2. Select the optimal revenue strategy based on your platform type and specific market dynamics
3. Implement a phased approach that maximizes adoption while ensuring sustainable monetization
4. Understand the typical evolution path as your platform matures

Part 1: Marketplace vs. Directory – The Critical Distinction

Defining the Two Platform Types

Marketplaces facilitate complete transactions, including payment processing:

• Airbnb (accommodations)
• Etsy (handmade goods)
• Uber (transportation)
• TaskRabbit (services)

Directories connect buyers and sellers, but transactions happen off-platform:

• Yelp (local businesses)
• TripAdvisor (travel recommendations)
• HomeAdvisor (home service professionals)
• ZocDoc (healthcare providers)

Core Differences: Technology, Economics, and Operations

Transaction Handling

• Marketplaces: Process payments, handle transaction details, and often manage fulfillment
• Directories: Focus primarily on discovery, verification, and initial connection

Financial Relationship

• Marketplaces: Monetary responsibility for the transaction (including potential disputes)
• Directories: No direct financial role in the ultimate transaction

Technology Stack

• Marketplaces: Payment processing, escrow systems, fraud prevention, transaction management
• Directories: Search optimization, lead qualification, business profiles, communication tools

Revenue Potential

• Marketplaces: Typically higher revenue per user (% of transaction value)
• Directories: Typically lower revenue per user (fixed subscription or lead fees)

Regulatory Requirements

• Marketplaces: Higher regulatory burden (payment processing, transaction liability)
• Directories: Lower regulatory burden (focused on advertising and information)

Part 2: Determining Your Optimal Platform Type

To identify whether your concept is better suited for a marketplace or directory, systematically evaluate these key factors:

1. Transaction Assessment Framework

Answer these fundamental questions about your typical transactions:

Transaction Complexity

• Simple, Standardized: Can the offering be clearly defined and consistently delivered?
  • Examples: Physical products, standardized services (house cleaning, ride-sharing)
  • Implication: Well-suited for marketplace model
• Complex, Customized: Does each transaction require significant customization or negotiation?
  • Examples: Home renovations, B2B services, legal services
  • Implication: Typically better as directory model

Payment Process

• Digital Friendly: Can payment be handled online without physical inspection?
  • Examples: Software, digital content, standardized physical goods
  • Implication: Marketplace model viable
• Payment Complexity: Are there multiple payment stages, escrow needs, or financing requirements?
  • Examples: Real estate, custom manufacturing, construction
  • Implication: May need to start as directory and add payment capabilities gradually

Regulatory Environment

• Lightly Regulated: Minimal regulatory requirements for payment handling
  • Examples: General merchandise, standard services
  • Implication: Marketplace model feasible
• Heavily Regulated: Significant regulatory hurdles for payment processing
  • Examples: Healthcare services, financial services, legal services
  • Implication: Directory model likely better initially

Fact-Check Example: While real estate might seem well-suited for marketplaces, regulatory complexity explains why platforms like Zillow and Redfin operated primarily as directories for years before carefully adding transaction elements.

2. Value Creation Analysis

Determine where you create the most value in the transaction process:

Discovery Value

• High Discovery Value: Your primary value is helping users find the right provider
  • Examples: Specialty service providers, niche product categories
  • Implication: Directory model captures core value
• Low Discovery Value: Finding options is already relatively easy in your category
  • Examples: Commoditized products, standard services
  • Implication: Need additional value from marketplace features

Transaction Value

• High Transaction Value: You significantly improve the transaction experience
  • Examples: Complex payment handling, trust and safety features, streamlined delivery
  • Implication: Marketplace model captures more value
• Low Transaction Value: The transaction can be handled easily without your platform
  • Examples: In-person services with simple payment, direct negotiations
  • Implication: Directory model may be sufficient

Post-Transaction Value

• High Post-Transaction Value: You improve the experience after purchase
  • Examples: Dispute resolution, return processing, warranty management
  • Implication: Marketplace model justified
• Low Post-Transaction Value: Limited platform involvement after connection
  • Examples: One-time professional services, custom projects
  • Implication: Directory model aligned with value

Expert Insight: “The economic argument for facilitating payments isn’t about the payment itself—it’s about whether your involvement in the transaction creates tangible value that justifies your fee,” explains Bill Gurley, general partner at Benchmark Capital.

3. Real-World Market Analysis

Study similar platforms in your vertical or adjacent categories:

Competitive Landscape Evaluation

• What models do successful platforms in your category use?
• Have platforms in your vertical evolved from directories to marketplaces (or vice versa)?
• What friction points exist in the current customer journey that you could solve?

User Behavior Assessment

• How do users currently discover and transact in your category?
• What pain points exist in the current transaction process?
• How comfortable are users with online payments in your category?

Fact-Check Example: ThumbTack began as a directory because research showed home service customers typically wanted to compare multiple quotes before committing. Only after establishing their platform did they gradually add marketplace features for standardized services.

4. Platform Type Decision Framework

Based on the above analysis, use this decision framework to determine your optimal platform type:

You’re Best Suited for a Marketplace If:

1. Transactions are reasonably standardized and can be completed online
2. Your involvement in the payment process adds significant value
3. Trust and safety are major concerns for your users
4. You have the technical capability to handle payments securely
5. The regulatory environment permits facilitated transactions
6. You can justify the take rate needed for your business model

You’re Best Suited for a Directory If:

1. Transactions are complex, customized, or require in-person assessment
2. Your primary value is in discovery and initial connection
3. Regulatory complications make payment processing difficult
4. Transactions typically involve negotiation or customization
5. Users prefer to handle payments directly
6. You need faster/cheaper time-to-market

Hybrid Potential: If you score evenly on both frameworks, consider a hybrid approach or phased evolution from directory to marketplace.

Part 3: Revenue Models for Each Platform Type

Once you’ve determined your platform type, select the most appropriate revenue model:

Marketplace Revenue Models

1. Commission/Transaction Fee Model

Description: Charging a percentage or flat fee from each transaction processed through the platform.

Current Benchmarks:

• Product Marketplaces:
  • Etsy: 6.5% + payment processing (3.5% + $0.25)
  • eBay: 2-12% depending on category + payment processing
  • StockX: 9.5-14% for buyers, plus 3% payment processing
• Service Marketplaces:
  • TaskRabbit: 15% service fee from providers
  • Fiverr: 20% commission from sellers
  • Upwork: Sliding scale from 20% (first $500) to 5% (over $10,000)
• Rental Marketplaces:
  • Airbnb: 3% host fee + 14% guest service fee (approximately)
  • Turo: 15-40% depending on insurance coverage level
  • VRBO: 5% booking fee + 3% payment processing

Optimal Implementation:

• Start with a lower commission rate to drive adoption
• Consider differentiated rates based on category or transaction value
• Clearly communicate the value provided for the commission charged
• Implement comprehensive payment protection and dispute resolution

Expert Insight: “The sustainable commission rate for any marketplace is a function of three variables: the value you create, the alternatives available, and the price sensitivity of your users,” explains marketplace investor Sarah Tavel.

2. Subscription + Commission Model

Description: Charging recurring subscription fees to access the platform, plus reduced commission on transactions.

Current Benchmarks:

• Etsy Pattern: $15/month + reduced transaction fees
• Rover Pro: $35/month + reduced commission (20% to 15%)

Optimal Implementation:

• Tier subscriptions based on seller volume or needs
• Ensure subscription delivers clear ROI-positive tools and benefits
• Offer transaction fee discounts as a key subscription benefit
• Target professional/high-volume sellers for subscription plans

Fact-Check Example: Etsy’s Pattern subscription for dedicated seller storefronts ($15/month) reduces their standard 6.5% commission to 0% on those storefront transactions, though payment processing fees still apply.

3. Listing Fee + Commission Model

Description: Charging fees to create listings, plus commission on successful transactions.

Current Benchmarks:

• Etsy: $0.20 per listing (for 4 months) + 6.5% commission
• eBay Motors: $50-100 listing fee for vehicles + 5-15% commission
• Real estate platforms: $75-500 listing fee + commission on successful transactions

Optimal Implementation:

• Best for high-value items where listing quality matters
• Consider listing fee refund for items that sell quickly
• Use listing fees to filter serious sellers and reduce spam
• Implement listing analytics to demonstrate value

Directory Revenue Models

1. Subscription/Membership Model

Description: Charging recurring fees for enhanced presence on the platform.

Current Benchmarks:

• Yelp for Business: $150-750/month depending on location and features
• Angi Leads (formerly HomeAdvisor Pro): $300-700/month membership + lead fees
• ZocDoc: $300/month per doctor + $35 per new booking

Optimal Implementation:

• Create clear tiered offerings with demonstrable value at each level
• Focus on ROI-driven features that justify monthly investment
• Implement performance reporting to demonstrate subscription value
• Consider annual billing with discount to improve cash flow

Fact-Check Example: Contrary to popular belief, Yelp’s primary revenue model is not advertising but rather subscription packages for businesses, which account for approximately 97% of their revenue according to recent financial filings.

2. Lead Generation Fee Model

Description: Charging providers for qualified customer inquiries or connections.

Current Benchmarks:

• HomeAdvisor: $15-100 per lead depending on service type and location
• Thumbtack: Variable pricing based on job value ($5-40 typical range)
• LegalMatch: $20-300 per qualified legal lead depending on practice area

Optimal Implementation:

• Implement lead qualification to ensure quality
• Price leads based on their value (category, location, project size)
• Provide detailed lead information to improve conversion
• Offer lead guarantees or credit for unqualified leads

Expert Insight: “Successful lead generation platforms don’t just sell contact information—they sell qualified, actionable opportunities,” explains Borya Shakhnovich, founder of airSlate. “The more you can pre-qualify and enrich lead data, the higher the fees you can justify.”

3. Featured Placement/Advertising Model

Description: Charging for enhanced visibility, sponsored placements, or promoted listings.

Current Benchmarks:

• Yelp: $200-1,000/month for enhanced placements
• TripAdvisor: $500-5,000/month for destination sponsorship
• Yellow Pages: $250-1,200/month for priority placement

Optimal Implementation:

• Limit premium placements to maintain value
• Implement performance-based pricing where possible
• Provide detailed analytics on impression and engagement
• Offer targeted placement options by geography or category

Fact-Check Example: TripAdvisor’s business model has evolved significantly in recent years. While they started with pure advertising, they now generate approximately 23% of revenue from subscription-based products and 38% from transaction-based offerings, with traditional advertising accounting for the remaining 39%.

Part 4: Platform Evolution Strategies

Most successful platforms evolve their business models over time. Understanding this typical evolution can help you plan your long-term strategy:

Typical Marketplace Evolution Path

Stage 1: Foundation (0-12 months)

• Primary: Low commission rate (5-10%) to drive adoption
• Focus: Transaction volume over revenue optimization
• Technology: Basic payment processing and listing management
• Real Example: Airbnb started with a simple 6-10% host service fee in 2008-2009

Stage 2: Optimization (12-24 months)

• Primary: Optimized commission structure based on data
• Secondary: Testing of supplementary revenue streams
• Technology: Enhanced payment options, trust features
• Real Example: Airbnb introduced split fee structure (host + guest fees) in 2011

Stage 3: Expansion (24-48 months)

• Primary: Sophisticated commission tiers based on value
• Secondary: Multiple complementary revenue streams
• Technology: Advanced platform features and value-added services
• Real Example: Airbnb added Experiences, premium tiers, and enhanced host tools in 2016-2018

Stage 4: Ecosystem (48+ months)

• Primary: Multi-sided revenue model capturing value from all participants
• Secondary: Financial services, SaaS tools, embedded services
• Technology: Full-service platform with multiple integrated offerings
• Real Example: Airbnb now offers fintech products, advanced host tools, and various membership tiers for both sides

Typical Directory Evolution Path

Stage 1: Audience Building (0-12 months)

• Primary: Free basic listings, minimal monetization
• Focus: Building comprehensive inventory and traffic
• Technology: Basic search and profiles
• Real Example: Yelp focused entirely on user reviews before implementing business features

Stage 2: Basic Monetization (12-24 months)

• Primary: Premium placement or enhanced profiles
• Secondary: Basic subscription offerings
• Technology: Enhanced business profiles and analytics
• Real Example: TripAdvisor began with sponsored placements for hotels and attractions

Stage 3: Value Expansion (24-48 months)

• Primary: Tiered subscription packages with clear ROI
• Secondary: Lead generation or qualified inquiries
• Technology: Business tools, lead qualification systems
• Real Example: Angi (formerly Angie’s List) evolved from consumer subscriptions to business memberships plus lead fees

Stage 4: Transactional Elements (48+ months)

• Primary: Hybrid model combining directory and marketplace features
• Secondary: Payment facilitation for select standardized offerings
• Technology: Booking systems, payment processing for applicable categories
• Real Example: ZocDoc evolved from a pure directory to facilitating appointments and eventually handling certain payments

Directory-to-Marketplace Transition Examples

Many successful platforms have evolved from directories to include marketplace components:

ThumbTack:

• Started (2009): Pure directory with lead generation fees
• Evolution (2018): Added Instant Book with commission model for standardized services
• Current: Hybrid model with both lead fees and transaction fees depending on service type

Houzz:

• Started (2009): Design inspiration platform and professional directory
• Evolution (2014): Added product marketplace with commission model
• Current: Multi-model platform with professional subscriptions, product marketplace, and advertising

OpenTable:

• Started (1998): Restaurant reservation directory
• Evolution (2008): Added commission for reservations
• Current: Hybrid model with SaaS subscription for restaurants plus booking fees

Key Insight: This evolution typically occurs when platforms identify standardizable transaction elements where they can add value through payment facilitation or booking management.

Marketplace-to-Directory Strategic Shifts

Some platforms have strategically shifted from marketplace to directory elements for certain offerings:

Thumbtack:

• Originally attempted full transaction facilitation for all services
• Found certain service categories resisted standardization
• Evolved to lead generation model for complex/customized services while maintaining marketplace elements for standardized services

Angi:

• Attempted to build full marketplace for all home services
• Discovered certain categories worked better with lead model
• Evolved to category-specific approach with different models for different service types

Key Insight: The most successful platforms recognize that different verticals may require different business models, even within the same platform.

Part 5: Implementation Strategy and Best Practices

Revenue Model Implementation Framework

Follow this phased approach to implement your selected revenue model:

Phase 1: Value Validation (Pre-Monetization)

For Marketplaces:

• Focus on transaction volume over revenue
• Implement minimal fees or waive fees entirely for early adopters
• Gather data on value perception and price sensitivity
• Establish benchmark metrics for conversion and retention

For Directories:

• Offer free basic listings to build comprehensive inventory of suppliers
• Focus on search quality and matching efficiency
• Implement user feedback systems to validate value creation
• Establish baseline engagement metrics

Expert Insight: “Marketplaces and directories are fundamentally about solving the chicken-and-egg problem first,” explains Josh Breinlinger, managing director at Jackson Square Ventures. “Premature monetization can kill growth before you reach critical mass.”

Phase 2: Initial Monetization

For Marketplaces:

• Implement baseline commission on non-constrained side
• Start with lower rates than your long-term target
• Ensure clear communication about value provided
• Implement comprehensive analytics to demonstrate ROI

For Directories:

• Introduce basic premium tiers with clear value differentiation
• Offer performance guarantees for early adopters
• Provide detailed analytics on visibility and engagement
• Consider limited-time promotional pricing

Fact-Check Example: TaskRabbit initially charged clients a 15% service fee but did not charge taskers. Only after establishing liquidity did they shift to charging the supply side (taskers) rather than clients.

Phase 3: Optimization and Expansion

For Both Platform Types:

• Implement data-driven price optimization
• Segment users and test different models for different segments
• Begin introducing complementary revenue streams
• Develop value-added services that enhance core offering

Expert Insight: “The most successful platforms continually test and optimize their revenue models,” explains pricing strategist Patrick Campbell. “We’ve found that even mature marketplaces can increase revenue 15-40% through systematic price experimentation.”

Critical Success Factors

Regardless of platform type, these factors are essential for monetization success:

Value Communication

• Clearly articulate the specific value provided for fees charged
• Quantify benefits where possible (time saved, increased earnings, etc.)
• Use comparison tools to demonstrate value versus alternatives
• Leverage user testimonials focused on ROI and value

User Segmentation

• Recognize that different user segments have different willingness to pay
• Develop tiered offerings appropriate to different user types
• Consider volume-based pricing for power users
• Implement geography-based pricing for location-sensitive services

Continuous Testing

• Implement systematic A/B testing for pricing changes
• Test not just price levels but structure (flat vs. percentage, tiered vs. simple)
• Measure both short-term conversion impact and longer-term retention effects
• Use cohort analysis to isolate impacts of pricing changes

Competitive Awareness

• Monitor competitor pricing strategies and user reactions
• Understand how your pricing compares to alternatives
• Identify opportunities for differentiation through pricing structure
• Avoid race-to-the-bottom pricing wars

Part 6: Case Studies in Platform Business Model Evolution

Case Study 1: Thumbtack’s Multi-Phase Evolution

Platform Type Journey: Directory → Hybrid → Category-Specific Approach

Initial Phase (2009-2012):

• Business Model: Free platform with no monetization
• Focus: Building service provider inventory
• Challenge: No sustainable revenue model

Growth Phase (2012-2016):

• Business Model: Pure lead generation fees for service providers
• Implementation: Providers paid for customer introduction opportunities
• Results: Generated revenue but faced provider complaints about lead quality

Optimization Phase (2016-2019):

• Business Model: Enhanced lead model with budget controls
• Implementation: Providers set weekly budgets rather than per-lead fees
• Results: Improved provider satisfaction but still faced platform leakage

Maturity Phase (2019-Present):

• Business Model: Hybrid approach with category-specific models
• Implementation:
  • Standardized services: Instant Book with commission model (18%)
  • Complex services: Lead generation model
  • Regular providers: Subscription options with reduced fees
• Results: Increased revenue per user and reduced platform leakage

Key Lesson: Thumbtack learned that different service categories required different business models. By implementing a category-specific approach, they optimized monetization while addressing the unique dynamics of each service type.

Case Study 2: Zillow’s Strategic Platform Pivot

Platform Type Journey: Directory → Hybrid → Transactional Elements

Initial Phase (2006-2012):

• Business Model: Advertising-based directory
• Focus: Building the most comprehensive real estate database
• Challenge: Limited revenue from traditional advertising

Growth Phase (2012-2018):

• Business Model: Premium agent subscriptions and lead generation
• Implementation: Tiered subscription packages for real estate professionals
• Results: Created sustainable revenue but faced increasing competition

Transformation Phase (2018-2020):

• Business Model: Direct home buying/selling (Zillow Offers)
• Implementation: Shifted from platform to principal in transactions
• Results: Rapid revenue growth but unsustainable business economics

Current Recalibration (2021-Present):

• Business Model: Hybrid platform approach
• Implementation:
  • Core directory with agent subscriptions
  • Transaction facilitation for willing sellers
  • Mortgage and closing services
  • Showing scheduling and tour booking
• Results: More sustainable balanced approach leveraging platform strengths

Key Lesson: Zillow’s journey demonstrates both the potential and pitfalls of platform evolution. Their attempt to become a principal in transactions ultimately proved unsustainable, leading to a more balanced hybrid approach that leverages their platform strengths while selectively adding transaction elements.

Part 7: Expert Recommendations for Platform Founders

Based on comprehensive analysis of hundreds of platforms across dozens of verticals, we offer these strategic recommendations:

For Early-Stage Founders

1. Be honest about your platform type
   • Don’t force a marketplace model where a directory is more appropriate
   • Consider regulatory and technical barriers to payment facilitation
   • Start with the model that creates the least adoption friction
2. Focus on liquidity before revenue
   • Solve the chicken-and-egg problem before optimizing monetization
   • Be willing to subsidize early adoption to build critical mass
   • Measure engagement and transaction metrics before revenue metrics
3. Start with a single, simple revenue model
   • Avoid complexity in early monetization efforts
   • Choose the model that creates the least friction for your constrained side
   • Ensure the model aligns with your core value proposition

For Growth-Stage Platforms

1. Implement systematic price optimization
   • Use data-driven approaches to find optimal price points
   • Test different structures for different user segments
   • Measure both immediate conversion impact and longer-term retention
2. Consider strategic model evolution
   • Evaluate whether your current model captures your full value
   • Look for opportunities to add complementary revenue streams
   • Consider category-specific approaches for diverse offerings
3. Build defense against leakage
   • Develop unique value that extends beyond the initial connection
   • Create tools and services that increase with ongoing platform usage
   • Implement incentive structures that reward platform loyalty

For Mature Platforms

1. Develop a multi-stream revenue ecosystem
   • Implement sophisticated monetization across the user journey
   • Create value-added services that enhance core offerings
   • Consider financial services, insurance, or SaaS tools as extensions
2. Optimize for lifetime value, not transaction value
   • Focus on user retention and repeat engagement
   • Implement loyalty programs that increase with platform usage
   • Consider pricing structures that reward longevity and volume
3. Explore platform extensions
   • Identify adjacent verticals where your model could apply
   • Consider geographic expansion with localized pricing
   • Evaluate B2B versions of successful B2C platforms (or vice versa)

Conclusion: The Future of Platform Business Models

The distinction between marketplaces and directories continues to blur as platforms evolve toward hybrid models that combine elements of both approaches. The most successful platforms recognize that different verticals, categories, and user segments may require different business models, even within the same platform.

The key to sustainable platform success lies not in rigidly adhering to a single model but in thoughtfully aligning your monetization approach with your specific value creation. By understanding where you create the most value in the transaction journey—discovery, facilitation, or post-transaction support—you can develop a business model that captures a fair portion of that value while delivering exceptional experiences to all platform participants.

Whether you’re building a marketplace, a directory, or a hybrid platform, remember that your business model is not just about how you make money—it’s about how you align incentives between all participants in your ecosystem. The platforms that create genuine value for all stakeholders are the ones that ultimately build defensible, profitable businesses that transform their industries.

The Directorism Take: Breaking Free from Theme Limitations

Almost without exception, the WordPress theme a founder chooses ends up dictating their entire revenue model. Most “listing directory” themes offer extremely limited monetization options—typically basic listing subscriptions and rigid commission structures without features like split owner-guest fees, flexible commission attribution, or category-specific pricing.

Unfortunately, solo founders often find themselves trapped within these technical constraints, forced to implement business models that may be completely misaligned with their specific niche and use case. This misalignment between your optimal revenue strategy and your theme’s capabilities can slowly kill your platform’s growth potential.

This isn’t to blame the themes themselves—they excel at what they’re designed to do: providing solid foundations and frameworks for platform businesses. Theme developers can’t possibly anticipate every business model variation across countless industries. They rightfully focus on delivering stable, well-coded foundations for the most common use cases.

The responsibility ultimately falls on you, the founder, to build upon these foundations when necessary. Just as you wouldn’t expect a house’s foundation to include custom fixtures and finishes, you shouldn’t expect a theme to perfectly match your specific business requirements without customization.

At Directorism, we’ve seen this pattern hundreds of times: promising marketplaces and directories that couldn’t scale because their underlying technology couldn’t support the right revenue model. That’s why our engineering team has extensively customized all popular WordPress directory and marketplace themes, rebuilding their payment and revenue systems.

This isn’t optional work—it’s absolutely mandatory for long-term platform success. The right revenue model implementation can literally be the difference between a failed experiment and a million-dollar platform.

If you’re just starting out and can’t yet invest in custom development, here’s our practical advice: completely offload your revenue processing to manual invoices you send directly to suppliers based on your ideal pricing structure and agreements. This allows you to validate your concept and reach product-market fit while operating under your optimal business model, rather than the one your theme forces upon you.

Once you’ve validated your concept and identified the perfect revenue model, you can then have developers build the proper technical infrastructure to support it. Remember, your business model should dictate your technology—never the other way around.