3 min read

Moving Beyond Marketplaces Part 1: Why Independent Brands Beat Marketplaces

When starting a services business, entrepreneurs often face a fundamental decision: whether to build an independent brand or rely on existing online marketplaces. Let's cover the pros and cons of both!
Moving Beyond Marketplaces Part 1: Why Independent Brands Beat Marketplaces

When starting a services business, entrepreneurs often face a fundamental decision: whether to build an independent brand or rely on existing online marketplaces.

While online marketplaces can offer visibility and a built-in customer base, they also come with downsides like reduced control, high competition, and commissions. In contrast, building an independent brand has many advantages that can lead to long-term business success. Here's why:

1. Complete Control Over Your Brand

Building an independent brand gives you full control over your business. From your brand's look and feel to your customer communication, you make all the decisions. This freedom allows you to shape your brand personality, build customer relationships, and differentiate your services from competitors. You're not bound by the rules or regulations of a marketplace, which means you can innovate and adapt your business to your clients' needs and market trends.

Dayslice has built branding functionality for this purpose: to differentiate yourself from other service providers in the space.

2. Higher Profit Margins

Online marketplaces often charge fees or take a percentage of each transaction. This can significantly reduce your profit margins. In contrast, when you run an independent business, you keep 100% of your earnings. While there are costs associated with running a website and marketing your brand, these costs can be controlled and optimized for your business's specific needs and budget.

Dayslice is a flat fee per month while marketplaces take a percentage per hour or gig worked

3. Direct Customer Relationships

When you rely on a marketplace, you lose the opportunity to build direct relationships with your customers. Marketplaces often restrict sellers from communicating with customers outside the platform, which can limit your ability to provide personalized service and build customer loyalty. With an independent brand, you can engage with your customers directly, learn about their needs, and provide tailored solutions. This can lead to higher customer satisfaction and repeat business.

4. Unique Customer Experience

An independent brand allows you to create a unique customer experience. You can customize every aspect of the customer journey, from the moment they land on your website to the post-purchase follow-up. This level of customization is not possible on a marketplace, where your business must conform to the platform's standard user experience. A unique customer experience can help your brand stand out and increase customer retention.

5. Building a Long-Term Asset

Your independent brand is an asset that can grow in value over time. As you build your brand reputation and customer base, your business becomes more valuable. This is especially important if you plan to sell your business in the future. On the other hand, if you build your business on a marketplace, you are building the marketplace's brand, not your own. If the marketplace's rules change or it shuts down, your business could be at risk.

6. Independence from Platform Changes

Marketplaces can change their rules, fee structures, or algorithms at any time, and these changes can drastically affect your business. For example, a change in the marketplace's search algorithm could cause your listings to drop in visibility, leading to a decrease in sales. With an independent brand, you're not subject to these risks. You can adapt and evolve your business strategy based on your market research and business goals, rather than the whims of a third-party platform.

7. Greater Trust and Credibility

Having an independent brand can increase trust and credibility with your customers. A professional, well-designed website and a consistent, authentic brand voice can make your business appear more established and reliable. In contrast, marketplaces are often crowded with competitors, and customers may find it difficult to distinguish between credible sellers and less trustworthy ones.

In conclusion, while building an independent brand requires effort and investment, the potential rewards are significant. By maintaining control over your brand, fostering direct customer relationships, and creating a unique customer experience, you can build a sustainable and profitable business that's resilient to market changes.

At Dayslice, we know it's a big leap to go from being on a marketplace to launching your own independent book of business - which is why we are committed to making it as easy as possible. During the transition period, many of our users use Dayslice alongside services marketplaces and will transition their most-trusted customer relationships slowly onto Dayslice.

Test drive Dayslice for free at https://hello.dayslice.com/