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...
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Where to find Dan Hockenmaier:
• Twitter: / danhockenmaier
• LinkedIn: / dan-hock
• Website: www.danhock.com/
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Where to find Lenny:
• Newsletter: www.lennysnewsletter.com
• Twitter: / lennysan
• LinkedIn: / lennyrachitsky
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Thank you to our wonderful sponsors for making this episode possible:
• Amplitude: amplitude.com/
• Flatfile: www.flatfile.com/lenny
• Eppo: www.geteppo.com/
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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
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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
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Production and marketing by penname.co/. For inquiries about sponsoring the podcast, email [e-mail].

[@vaibhavonline112]

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

[@wahidkhalid1]

Thank you for this gem Lenny! :D

[@wemote]

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

[@user-rm2in9bp8d]

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

[@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!

[@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😂

[@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/

[@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 🐇

[@johnnysanchez8709]

👏👏

[@JasonBauder-ki9ji]

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

[@sojibrajii]

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