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From Social Networks To Market Networks, by James Currier

Stashed in: @angellist, Airbnb, Commerce, Uber, Etsy, Alibaba

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Made me wonder what a market network is.

“Marketplaces” provide transactions among multiple buyers and multiple sellers — like eBayEtsyUber and LendingClub.

“Networks” provide profiles that project a person’s identity, then lets them communicate in a 360-degree pattern with other people in the network. Think FacebookTwitter and LinkedIn.

What’s unique about market networks is that they:

  • Combine the main elements of both networks and marketplaces
  • Use SaaS workflow software to focus action around longer-term projects, not just a quick transaction
  • Promote the service provider as a differentiated individual, helping to build long-term relationships

Helpful charts:

From Social Networks To Market Networks | TechCrunch

From Social Networks To Market Networks | TechCrunch

Talk about a massively overreaching article. It makes you think that market networks are SUPPLANTING social networks in importance... but that turns out to be true ONLY FOR CERTAIN INDUSTRIES that are, shall we say, often quite marginal. Wedding planners and angel investing are not exactly giant economic drivers. Plus, he's still wrong. People who are in the referral-making business have the biggest need for favors to be transactionally transparent among themselves -- you have to know that I scratched your back so that you can scratch mine. They are not in the business of letting potential clients see their preferred vendors and partners directly, which may potentially cut them out of the loop -- their Rolodex IS a lot of the value they have to the client. A lot of people have tried to come up with these networks for industries like film and graphic design, and they all have failed on the human side.

The article does overreach but I believe ResearchGate (the network for scientists) is doing well:

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