A Setter executive describes building growth at a home-services marketplace, from acquisition through operations. They developed a multi-tenancy approach to route service pros across platforms, then built internal tools when the bottleneck shifted to operations. They argue managed marketplaces in thin-margin sectors like home services struggle to differentiate because the operational overhead makes them expensive and similar to traditional brands.
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Could you walk us through, you know, your experience at Setter and, you know, what you're working on at the time? Yeah, I initially joined very much focused on growth and then ended up sort of hitting a point where the bottleneck in the business was lower down in the funnel, managed marketplace. So we often had sort of our own pros or experts involved in pricing these jobs. The value prop of Setter was, hey, here's one app for you to get anything done in your home, take a photo of it, we'll end up getting the job priced and handled. And so started by sort of carving out unique channels that, that worked well for us. We did a lot of multi-teneting. So we did a lot of posting pros on different marketplaces to sort of siphon people off and then eventually ended up building tools for our ops team to get a whole lot faster once the bottleneck was no longer at the top of the funnel. So, so that, that was a lot of what I focused on. Setter is a super interesting business. I think really awesome people, managed marketplaces are super, super hard, particularly in industries with thin margins like home services are. So I'm more skeptical of managed marketplaces today than I was then. I think there's very often a sort of expensive reliable option in most industries. And a lot of what you're doing with a marketplace is actually allowing people to choose different options. You're, you're allowing them to express different preferences or restrictions and giving them a different choice outside of that, like, known brand name. And I think managed marketplaces often end up looking and feeling like the same trade-offs with that known brand name where they're more expensive because you have to support an ops layer very often. They're, they're more sort of robust or reliable, but it ends up often not being a differentiated offering in the market.