Why most marketplaces die

Hey friends 👋Can you believe this is our last episode before 2026?(We feel like we’re aging in dog years over here.)Since everyone’s buying gifts on marketplaces right now, we figured—why not talk about the business of marketplaces? Specifically, the #1 killer of early-stage marketplace startups: lack of liquidity.This is what most founders miss: a marketplace only exists to make transactions more efficient. That’s it. If you don’t have buyers and sellers who actually want to do business together, there’s nothing to optimize.No efficiency = no marketplace.We break down what liquidity actually means and why it matters more than your tech stack or your fancy matching algorithm.Then we dive into three real-world scenarios—a handyman marketplace, a fractional sales consultant platform, and a video editor marketplace. We rate each one live on our conviction scale, pulling apart completion rates, transaction volumes, and the dreaded “managed service” red flag.And then sh*t gets weird… JDM gets surprisingly generous with his holiday spirit ratings while Cam channels full Scrooge energy.In Frivolous Thoughts: JDM splurges on a cinema-grade camera for his “little entrepreneurship videos” (sure, buddy), and Cam gets a sunrise alarm clock that might actually help him wake up like a human.See you in the new year!—Cameron and JDM This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit zerototraction.substack.com