28 Ways to Grow Supply in a Marketplace

This case study addresses the critical challenge of growing supply in two-sided marketplaces, drawing from the experiences of Airbnb and Uber. The author, Lenny Rachitsky (former Airbnb PM), emphasizes that supply-side growth is often the most important and difficult aspect of marketplace success, as it requires convincing individuals to fundamentally change their behavior - whether opening their homes to strangers or becoming rideshare drivers.

The approach involves a comprehensive toolkit of 28 tactics, with the first five detailed in this excerpt. Key strategies include: (1) crafting compelling value propositions that clearly communicate earning potential, (2) creating multiple entry points throughout the user experience to drive visitors toward the host pitch, (3) implementing incentivized referral programs to leverage word-of-mouth growth, (4) running direct sales operations through cold calling and door-to-door outreach, and (5) piggybacking off existing networks where potential suppliers already congregate.

At Airbnb, specific tactics showed measurable impact: earnings estimates were "an order of magnitude more effective than any other value prop," and the host referral program became "the single most efficient and effective growth lever for consumer supply." The company scaled from 100,000 homes in 2012 to over 6 million by leveraging these systematic approaches.

Key takeaways for product managers include: prioritize realistic value propositions focused on income potential, be aggressive about promoting hosting opportunities throughout the user journey, invest early in referral programs for word-of-mouth driven products, and don't underestimate the power of direct, personal outreach in early stages.