In a previous post, we looked at four ways to monetize your service-based marketplace. In this post, we’re going to ask a related question: is monetizing your partner directory a good idea?

Monetizing your partner directory creates an extra revenue stream.

Whether you go with a commission-based, subscription-based, or listing fee-based monetization model, there’s one very obvious – and very good – reason to monetize your partner directory: it brings in revenue. Turning your static partner directory into a successful and popular service-based marketplace can result in you enjoying a robust and worthwhile revenue stream over time.

That said, there are some red flags to consider before deciding to monetize a service-based marketplace. 

Achieving critical mass is no small task.

Joris Lochy outlines some of the challenges associated with making a go of monetizing a digital marketplace in this article. In particular, he points out that competition can be incredibly fierce in the digital marketplace sphere, and that achieving critical mass can prove difficult. According to Lochy, achieving critical mass is essential, as it allows a marketplace to gain momentum and start reliably attracting both sellers and buyers.

However, the great thing about monetizing your partner directory is that you already have a cohort of sellers (your partners) and buyers (your customers and those of your partners) locked and loaded. Your customers already need access to the services your partners supply, which means that supply and demand are all but taken care of. All you need to do is start matchmaking between the two.

Monetization can discourage participation.

Another potential con of making the decision to monetize your partner directory is that the financial requirement risks putting off sellers or buyers. Navigating this requires having a good sense of your market, your industry, and your partners, and making sure that you choose the right monetization model. For example, a commission-based structure can be an attractive option for newer marketplaces, as there’s no real financial risk to the seller (or buyer). Commission is only payable on sales made, as opposed to a monthly subscription fee which must be paid even when no deals have gone through. (Check out our blog for a larger discussion of different monetization models.)

The complexities of monetizing your partner directory can take valuable time and resources away from your core business focus.

Every resource diverted towards the maintenance and management of your monetized marketplace is a resource diverted away from your core business offering. If monetizing your partner directory is going to dilute your focus and resources, you need to be absolutely sure that it’s going to deliver a 100% return on investment. 

Using ready-built, white-labeled e-commerce marketplace infrastructure that’s specifically geared towards selling services eradicates the complexities associated with developing and managing your own monetized marketplace platform. Morphed’s eCommerce-enabled marketplace platform allows you to easily connect your customers with your accredited partners. Our built-in Customer Portal facilitates seamless communication throughout the project lifecycle and allows you to collect payments online via Stripe or wire transfer.


partner directory


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