In that last few years we’ve seen many sharing economy companies pop up. Some have thrived, others have shut down.

So what separates the two types of marketplaces? Tx Zhuo, Managing Partner at Karlin Ventures, wrote his list of tips to succeed on Entrepreneur.com.

1. Create a trusted brand.
2. Focus on the vertical instead of the horizontal.
3. Seek novel ways to maintain supply beyond basic lead generation.

Sounds easy, right? Well consider the common issues he found with unsuccessful marketplaces.

• They don’t solve a problem.
• The focus is too broad.
• The consumer experience is bad.
• They don’t reach sufficient scale.

How can you be sure that you’re doing things right? At Near Me, we encourage our marketplace owners to build a community around their brand, narrow their focus, and above all build supply first.

“If supply falls short when the demand comes calling, you run the risk of developing an “empty room” problem. Curate high-quality supply on your platform before you take it up to the demand so you can prevent the tipping point where demand outweighs supply.”-Zhuo.

What else would you add?

Read the complete article here