What are some of the key elements that contribute to variable costs in a marketplace ? Do you see emergence of AI and automation leading to fundamentally different dynamics in cost structures for marketplaces?
You spoke about some of the below
- Customer support,
- trust/safety, insurance, and
- acquisition costs can be massive costs for the business,
Why is Marketplace Revenue so Funky?
This is such a useful piece - thanks, Colin. I have a question...
Would customer support and developer costs be considered as COGS or variable expense? Or neither?
Great read!
Wondering why you include acquisition costs in the contribution margin when they are closer to fixed expenses rather than variable / COGs? Thanks!
Great points!
What are some of the key elements that contribute to variable costs in a marketplace ? Do you see emergence of AI and automation leading to fundamentally different dynamics in cost structures for marketplaces?
You spoke about some of the below
- Customer support,
- trust/safety, insurance, and
- acquisition costs can be massive costs for the business,
.... and the list goes on.
Great summary!