Build the next AirBnB, without coding skills. Introducing Sharetribe.

In a recent episode of the Unnoticed Entrepreneur podcast, host Jim James sat down with Juho Makkonen, the founder of ShareTribe, a company that enables entrepreneurs to launch their own marketplaces without any coding.

Introduction to ShareTribe

If you've ever had a groundbreaking idea for a marketplace but were daunted by the technical challenges, ShareTribe might be the solution you've been looking for. Founded by Juho Makkonen in 2011, ShareTribe allows entrepreneurs to create and launch marketplaces quickly and affordably, without needing a technical co-founder or significant funding.

Key Features of ShareTribe

• No Coding Required : Entrepreneurs can build a marketplace in a day.
• Affordability : Plans start at $39 a month, making it accessible for startups.
• Scalability : The platform supports custom coding and API integrations for unique features.

Case study: Drive Lah - marketplace for car sharing.

The Singapore-based marketplace for car-sharing has grown from an idea to a marketplace business with a team of 30 employees. The community boasts over 150,000 registered users and nearly 2,000 listings. The website has gone from an MVP to a powerful platform supported by advanced features and iOS and Android apps. In the summer of 2021, Drive lah raised $3.2 million in pre-series A funding. 

"We didn’t have to reinvent the wheel – a lot of the features we needed were already there."

– Gaurav Singhal, co-founder of Drive lah

The Journey of ShareTribe

Juho shared the story of how ShareTribe evolved from its initial concept to a platform that now supports over 1400 marketplaces globally. One notable example is Drivela, an "Airbnb for cars," which started with minimal resources and has now raised $10 million, operating in Singapore and Australia.

The Importance of Focus

One of the critical lessons Juho emphasized is the importance of starting with a narrow focus. He advises entrepreneurs to target a specific niche initially, even if their end vision is broader. This approach helps in building a strong foundation before scaling.

"You need to start with something that is really, really targeted. Even if your end vision is something like a marketplace for renting everything, begin with a specific focus."

Overcoming the Chicken-and-Egg Problem

A common challenge for dual-sided marketplaces is attracting both suppliers and customers. Juho suggests starting with the supply side and making it as easy as possible for them to join. Offering exclusive deals to early adopters can also be a powerful incentive.

"You want to use the fact that you are new to the market to your advantage. Offer exclusive deals to the first hundred suppliers."

The Psychology of Pricing

Interestingly, ShareTribe initially offered a freemium model but found it counterproductive. Entrepreneurs were hesitant to launch their marketplaces, preferring to stay in the planning phase. Introducing a nominal fee for the build plan encouraged more entrepreneurs to take the plunge and launch their marketplaces.

"We realized that it's really easy and fun to build, and it's very scary to launch. When the build plan was free, it increased the barrier to launching."

Content as a Growth Strategy

Juho highlighted the importance of content marketing in building ShareTribe's brand. The company has created a wealth of resources, including a Marketplace Academy and a book titled "The Lean Marketplace," to help entrepreneurs navigate the complexities of building a marketplace.

"Your content should be solving the same problem as your product. In our case, our product is solving the problem of building a successful marketplace business."

Lessons Learned and Future Directions

Juho shared some valuable lessons from his entrepreneurial journey. One key takeaway is the importance of aligning your business with your personal values and goals. He also emphasized the need for flexibility and the willingness to pivot based on market feedback.

"It's really important for you as an entrepreneur to understand who you are as a person, what you want out of life, and then build your business around those principles."

Conclusion

The conversation with Juho Makkonen offers a wealth of insights for aspiring marketplace entrepreneurs. From the importance of starting with a narrow focus to the psychology of pricing and the power of content marketing, there are numerous actionable takeaways. ShareTribe not only provides the tools to build a marketplace but also offers the guidance to navigate the entrepreneurial journey successfully.