Platforms

A business that sets the rules for a transaction it does not itself perform, and decides which side pays.

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FrameworkGrowth and business modelsBook
A platform sets rules for a transaction it does not perform
Name the two sides, say which one pays and why, and describe exactly how one side's growth helps the other.
Marketplace and platform pitches, product strategy questions, and the marketplace model.
From Platform Revolution · Geoffrey Parker, Marshall Van Alstyne and Sangeet Paul Choudary
Company insightGrowth and business modelsLetter located
Forgo the revenue you could capture if the platform grows more by letting others earn it
A platform that lets others earn on it grows faster than one that captures every dollar; the forgone revenue is the investment.
Platform strategy, take-rate questions, and any marketplace where the company could raise its share of the transaction.
From Shopify's 2015 IPO letter from Tobi Lütke · Tobi Lütke