It's time for an evolutionary step change. The kind of change that creates new paths leading to heaps of new potential and opportunity for all MeasureMatch marketplace customers.
The platform fee structure that we've had in place for Service Provider account owners, since we started to transact in early 2018 (see our newly published timeline here), has remained the same at 15% of all gross contracts.
Impressively, and very much a reflection of the quality of the service providers and professionals in our network - each deeply experienced and more partners than participants - this 15% business model was accepted with few grumblings.
That was the case until this year (2021), when we started to see clients come into MeasureMatch with larger budgets.
Importantly, we saw consultants and consultancies snap up these larger opportunities, and with relative ease. But the pricing feedback we received was clear - 15% of $50k or $100k or $200k, in contracts or aggregate earnings, not only stings, it sends the wrong signal about our commitment to partnership and mutual growth. It's a tone-deaf disincentive.
When we originally framed the platform fee model for Service Provider account owners, we had imagined clients spending well under £/$/€ 25,000 per contract.
And, going back a little further, when we started the MeasureMatch marketplace the vast majority of service provider customers were independent consultants.
Today, average contract values are climbing and around 50% of service providers in our network are agencies, consultancies and systems integrators.
This multi-tiered population of services professionals, comprised of solo operators and small, mid-sized and even large services organizations, requires that we structure platform fees differently.
Moving forward, the MeasureMatch "Platform Fee" for all new services contracts will be based on a sliding scale.
Simply put, as Service Provider account owners grow their earnings in each calendar year, the MeasureMatch Platform Fee lessens as their earnings reach into new tiers.
Here's an example:
Rebecca and her consultancy (15 team members) in New York just concluded a 6th MeasureMatch contract worth $47,000 for a total of $175,000 in gross contract earnings in 2021.
The Platform Fee against the $47,000 contract was 8% because this contract kept Rebecca’s total consultancy earnings squarely in the $100,001 to $250,000 revenue tier.
Here's the breakdown:
So, what this means is simple: Earn more. Make more.
Like any business, we need to make money to cover costs and invest in innovation and growth.
Making money is important, of course, but it’s not everything. That’s why we are prepared to introduce Platform Fee tiers for Service Provider accounts.
This new pricing model is designed to reward success, to engender partnership and to inspire loyalty. It’s also, admittedly, an experiment, so time will tell if this is indeed the right model.
Importantly, we are keen to maintain a balanced model that takes into account deeply important relationships between us and each of our customers, but also the relationships we are facilitating – through the MeasureMatch marketplace & partner ecosystem platform – between clients and services partners, and between Partner Exchange customers and their partners and their shared customers.
It's still free to set up a Client, Service Provider or Partner Exchange account, and the economics are better than ever.
Get in touch at any time with any questions. I’m always easily booked for a call here.
On behalf of my team, thank you.
Founder & CEO
Photo by Ibrahim Boran on Unsplash
MeasureMatch works hard to ensure every client project has the right amount of detail for our network to respond well. We ask that our services providers deliver the same level of care when expressing interest.
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