Multi-sided Platform

Multi-sided Platforms make money by sitting in the middle of two different groups that both need each other to win. This creates a network effect where you don’t need a banker’s permission to grow—the users bring the value to each other. The secret sauce is the “lock-in” that happens when all your friends or customers are already there, making it too painful to leave. It builds massive equity that grows while you sleep as the two sides keep the system alive. Visa and PlayStation use this to stay at the center of every transaction.