Solved: How to Acquire Initial Users for a Two-Sided Marketplace?

Hi there,

Thanks for reaching out. I'm happy to give you some initial thoughts and guidance on getting your platform off the ground, especially dealing with that classic chicken-and-egg challenge and working with a tight budget. It sounds like you've done some heavy lifting just getting the tech built, so well done on that!

The user acquisition side, particularly for a marketplace connecting two different groups, is certainly a beast of it's own. It requires a bit of a different approach than just promoting a single product or service.

I'd say you need to focus on getting one side first...

That chicken-and-egg problem is probably the biggest hurdle starting out. You need agencies to attract businesses, and businesses to attract agencies. Trying to get both at once with no existing users is really tough. In my experience, it's almost always easier to focus on getting one side established first.

Which side? My gut feeling, and what we've seen work sometimes, is that getting the supply side (the agencies in your case) onboard first might be a bit easier. Why? Because agencies are generally actively looking for new leads and ways to get clients. They have a direct incentive to join a platform that *promises* potential new business, even if it's quiet initially. The demand side (the small businesses needing services) only look for a solution when they have an immediate need, and if they search for an agency on your platform and find barely any listings, they'll just leave and likely wont come back.

So, focusing on getting a solid base of agencies listed first gives the businesses needing services a reason to stick around when they eventually find your platform.

How to reach agencies without spending a fortune...

Okay, so assuming you target the agencies first, how do you actually get them signed up with hardly any cash? Paid ads *can* work for reaching B2B audiences. We've run campaigns targeting B2B decision makers on LinkedIn and seen cost per leads around the $22 mark, and for some SaaS clients it was even lower. Meta can also work for reaching small business owners or people who manage business pages. But if budget is near zero, paid is probably not the very first step you should take.

You're looking at organic methods initially. Think about where agencies hang out online. Are there specific forums, online communities, or subreddits where they discuss their work, finding clients, or industry trends? Getting involved in those conversations (genuinely helping, not just spamming links) might get some eyes on your platform. Are there existing online directories where agencies list themselves? Could you manually find agencies in your target areas and reach out directly via email? That's essentially cold outreach, but it can be done with time instead of money. Just make sure your pitch is super clear on the value proposition for them – how your platform will help them get more leads.

Reaching the businesses needing services...

Once you have a decent base of agencies, you can start thinking about attracting the small businesses. When small businesses need something done – web design, marketing, etc. – they usually have an immediate problem they're trying to solve. They're problem-aware and often actively searching for solutions. This is why Google Search Ads is typically the most effective channel for service businesses, especially B2C services but it applies to B2B services too.

People will search for things like "small business marketing help", "affordable web designer", or "[type of service] agency near me". Running targeted Google Search campaigns allows you to show up right at that moment of intent. You'd do keyword research to figure out exactly what terms your potential users are typing into Google. Set up ads that speak directly to their needs and point them to a landing page where they can easily find agencies or post a job.

What does this cost? For B2B services, it's usually more expensive than B2C because the value of a client is higher and the search volume is lower. We've seen a big range in cost per lead for services. A campaign we're running for an HVAC company in a competitive area sees costs around $60 per lead. For childcare services, it was closer to $10 per signup. And our most efficient consumer services campaign got leads for a home cleaning company at £5 each. So the cost per lead for businesses looking for marketing or web design could vary quite a bit depending on competition and how well your ads and landing pages convert. You'd likely need some budget set aside for this stage, maybe starting with $1k-$2k a month to test things out, depending on how many leads you'd need to get traction.

We'll need to look at traffic quality and your website...

This is absolutely critical, and often the reason why ads or even organic efforts fail. No matter how you get people to your platform – whether through organic outreach, social posts, or eventually paid ads – if the platform itself isn't up to scratch, they just won't sign up. I looked at a SaaS website recently where ads weren't working at all, and tbh, the website didn't look trustworthy and their offer (a paid-only accounting system) wasn't compelling compared to competitors offering free trials.

For your marketplace, both agencies AND businesses need to see a trustworthy, professional-looking site. It can't be cluttered, slow, or difficult to navigate. Ask yourself:

- Does it clearly explain the value proposition for *both* sides? Why should an agency list there? Why should a business find help there instead of somewhere else?

- Is the signup process dead simple for both user types?

- Does the site inspire trust? Do you have any trust signals? Even things like showing social proof (if you get early signups, maybe testimonials later), having clear contact info, maybe an "About Us" that introduces you. For an eCommerce client selling handcrafted goods, their store initially lacked trust signals like reviews and links to where they sold on Etsy/Amazon, which made people hesitant to buy direct.

- How persuasive is the copy? Does it really sell the benefits? Professional copy can make a massive difference to conversion rates on a landing page or signup page. We use a copywriter specifically for our SaaS clients' landing pages because getting the messaging right is so important.

If people land on your site and it feels clunky or looks unfinished, or they can't figure out what to do, they'll leave instantly. You need to make sure the site converts the traffic you send there, otherwise any effort to get users is just wasted. Think about your "sales process" for each side - what's the simplest first step they can take (signup, listing a service, posting a job) and make the homepage and key landing pages guide them directly to that step.

Long-term testing and scaling...

Once you get some initial traction, you'll need to constantly test and optimise. For software or platform campaigns, it's normal to hit plateaus where you can't scale further without costs going up. This is because you're targeting a limited pool of people likely to convert. To get around this, you have to either improve your conversion rates on the platform itself (so more visitors sign up, lowering your effective cost per acquisition) or expand your reach.

On the ad side (when you get there), this means constant split testing. Test different audiences (are there other types of agencies or businesses you could target?), different ad creatives (images, text, video), and different messaging angles. Retargeting visitors who didn't sign up can also help lower overall acquisition costs by bringing back interested people.

Expanding to other platforms entirely could also be an option down the line once you've maxed out initial channels, but usually only makes sense once you're spending a decent amount already.

Summary of Recommended Actions:

Building a marketplace is definitely challenging, even more so with zero marketing background and a low budget. It requires a persistent, systematic approach to figure out which channels work best for each side and how to make your platform sticky. The process of finding the right audiences, crafting the right message, and optimising the platform experience is often iterative and takes time and expertise.

Understanding the nuances of different ad platforms, how to structure campaigns for optimal performance, how to interpret the data, and how to improve landing page conversion rates are all key pieces of the puzzle. Sometimes having someone with experience in these areas look at your specific situation can help shortcut a lot of trial and error, identify the biggest leverage points, and build a solid plan to get those first users and then scale.

If you'd like to dive deeper into any of this, or discuss your specific platform and goals in more detail, we'd be happy to schedule a free consultation to chat through it.

Regards,
Team @ Lukas Holschuh