How Marketplaces Use Pre-Transaction Screening to Prevent Bad Actors

Not every marketplace can rely on reviews to filter bad actors — especially in high-stakes categories like home services, childcare, or luxury goods. In this episode, Lucas and Luna examine how platforms like Angi (formerly Angie's List), Care.com, and The RealReal use pre-transaction screening — licensing checks, identity verification, and product authentication — to build trust before the first transaction happens. They break down the trade-offs: faster trust building versus slower onboarding, higher conversion versus lower supply. Specific data points include Angi's 43% reduction in service complaints after implementing license verification, and The RealReal's 7.5% authentication failure rate that saves buyers from counterfeits. A practical look at how two-sided networks decide who gets in the door. #Marketplaces #TwoSidedNetworks #TrustAndSafety #PreTransactionScreening #Angi #CareDotCom #TheRealReal #LuxuryResale #HomeServices #Childcare #CounterfeitPrevention #LicenseVerification #IdentityVerification #Authentication #AdverseSelection #MarketplaceDesign #BusinessAndTechnology #FexingoBusiness Keep every episode free: buymeacoffee.com/fexingo