Every company’s goals simplify down to one or more of the following three things for creating value: enhancing user growth, increasing revenue, or decreasing costs. A feasible method for achieving all of these exists by listing your developer service in a marketplace.
Marketplaces are a unique distribution opportunity as the platform nature of their business enables companies to focus on their core competencies while leveraging powerful network effects, underlying marketplace infrastructure, and gaining insights from data. Companies selling SaaS products to developers should consider selling their products in a marketplace to reach more developers and take their business to the next level.
Problems you face selling direct
The developer services landscape is rapidly growing as the adoption of the cloud is accelerating across all industries. Each day there are new services targeted towards developers showcased on sites like Product Hunt and Hacker News, giving developers an exploding number of options while making it harder and more expensive for vendors to stand out.
Further, each service vendor has to convince developers to integrate their product into their stacks making it a barrier to entry for the adoption of their services. This all results in slowed growth, lost sales, and decreased margins for developer services vendors. Fortunately, there is a distribution strategy that can negate these issues - list in a marketplace.
Marketplaces position you for success
Before diving deep into the powerful impacts that selling your product through a marketplace could have on your developer services business, it is imperative to understand the objectives marketplace operators are trying to achieve.
The primary goal of a marketplace is to enable interactions between buyers and sellers– an active, healthy ecosystem of engaging parties that result in powerful network effects. Network effects are a significant force in marketplace ecosystems. They occur when a critical mass of buyers and sellers engage on a platform, resulting in additional participants coming to engage on the platform and enhanced liquidity in the marketplace.
In order to achieve this goal, marketplace operators have to build both a buy side and sell side on the marketplace which is no easy task. To accomplish this, the marketplace must add value that will drive network effects by encouraging participants to actively engage on the platform. As Manifold has a revenue-sharing business model, our success is entirely dependent on vendors being able to successfully reach the right audience of buyers.
The competitive advantage you gain with Manifold
Numerous advantages can come from listing your product on a marketplace if you know how to get the most out of it. The best way to take advantage of a marketplace is to leverage the inherent economies of scale and benefit from the value added functionality offered by marketplaces.
Take advantage of underlying marketplace infrastructure to save costs, as this infrastructure represents the product you don’t have to build and maintain. For example, at Manifold, service providers can leverage our flexible, robust billing engine as well as our underlying provisioning, and identity and authentication infrastructure. This enables vendors on the marketplace to focus on their core product and not have to worry about spending precious cash on building and maintaining additional features and functionality.
A major value proposition of marketplaces that can be taken advantage of by vendors is the fact that they simplify the discovery of offerings. This has major economic benefits for both sides of the marketplace as it lowers search costs for developers, while simultaneously lowering distribution and customer acquisition costs for vendors and bringing the potential for faster growth and increased sales from more prospective customers seeing the listings.
Streamlined discovery is extremely important in the developer services ecosystem. When developing modern applications, one service rarely stands alone and it can be extremely difficult to differentiate and reach the community your product can bring the most value to. Being listed in a marketplace next to complementary services that have brand recognition or traction in specific communities presents a massive opportunity to build awareness faster than otherwise would have been possible.
Manifold aims to help listed vendors take full advantage of this opportunity and amplify their messaging by leveraging the benefits of marketing economies of scale. Manifold seeks to work with vendors to create engaging content that showcases multiple offerings on the marketplace, with the goal of educating and inspiring developers to try new products.
Start selling your service through Manifold
Listing on a marketplace presents a unique opportunity for developer services companies and is a great distribution strategy. Marketplaces add value to developer services companies by allowing them to leverage their underlying infrastructure to save costs as well as build awareness and increase the prospective user base by enabling them to reach a large and diverse audience of prospective customers.
Manifold enables developers to easily discover, buy and manage the best services for their applications, while allowing vendors to leverage our underlying infrastructure and marketing reach.
If you’re interested in becoming a service vendor on Manifold, read more and connect with us on our partners page!