In the movie, “The Social Network,” the actor who plays Mark Zuckerberg explains his vision for Facebook: he wants to create a social network where people can go and check on their friends, post pictures, browse, post comments and interact with people, maybe somebody they just met at a party. Could market networks, which utilizes the same networking strategy, adapted for business purposes, become the next big thing?
In his article for TechCrunch, James Currier (@JamesCurrier) thinks so. He discusses how this system of interconnected companies and communities has begun to reshape the business landscape. Last month, a small company based in San Francisco called HoneyBook, was fought over by VC’s as it announced a $22 million series B* (second round of funding) towards this new category of digital software.
What exactly is a market network?
“A market network often starts by enhancing a network of professionals that exists offline. Many of them have been transacting with each other for years using fax, checks, overnight packages and phone calls. By moving these connections and transactions into software, a market network makes it significantly easier for professionals to operate their businesses and clients to get better service.”
With market networks, people matter. They are not interchangeable, like with Lyft or Uber, but unique in their area of expertise and reputation. Collaboration is another factor in this system and it occurs around a project. HoneyBook, for instance, creates an event and revolves professionals around it such as the florist, the venue, photographer and any other professional needed to pull it together.
As we look around, many industries have already adapted this strategy (houzz, JOIST, CrowdFlower), and our prediction is that many will follow suit. At its early stages, Facebook merely had a few hundred users sharing photos and commenting on each other’s posts; today, it has millions of users all around the world. Will market networks follow the same peak? Most probably, the question is, how will your company take advantage of its potential?
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