MCPInstall

hierarchy-of-marketplaces

Use when asked about "marketplace strategy", "chicken and egg problem", "liquidity", "two-sided market", "tipping a marketplace", "GMV growth", or "Sarah Tavel marketplaces". Helps founders and product leaders build defensible marketplace businesses by sequencing supply and demand. The Hierarchy of Marketplaces framework (created by Sarah Tavel / Benchmark) provides a progression from focused launch to market dominance.

Installs
338
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Install

Works with every agent the skills CLI supports.

npx skills add https://github.com/pmprompt/claude-plugin-product-management --skill hierarchy-of-marketplaces
  1. 01

    Install

    Run the command in your project. The CLI asks which agents to install for.

  2. 02

    Describe the task

    Ask your agent for something this skill covers. It loads hierarchy-of-marketplaces automatically when relevant.

  3. 03

    Review the result

    The agent follows the SKILL.md steps, scripts and references bundled with the skill.

SKILL.md

The instructions your agent reads when the skill is triggered.

Domain Context

This skill implements a proven product management framework. The approach combines best practices from industry leaders and is designed for practical application in day-to-day PM work.

Input Requirements

  • Context about your product, feature, or problem
  • Relevant data, research, or constraints (recommended but optional)
  • Clear articulation of what you're trying to achieve

Hierarchy of Marketplaces

What It Is

The Hierarchy of Marketplaces is a framework for building defensible marketplace businesses. The core insight: GMV is a vanity metric. Happy GMV is what matters.

Most marketplace founders race to grow GMV as fast as possible, spreading resources thin across markets and categories. This is backwards. The path to a dominant, profitable marketplace requires working through three levels in sequence:

  1. Focus - Constrain your market to a "thimble" and achieve minimum viable happiness
  2. Tip - Reach saturation in your focused market until it tips in your favor
  3. Dominate - Only then expand to adjacent markets and categories

The key shift: Move from asking "How do we grow GMV?" to asking "How do we make both sides of our marketplace so happy they retain?"

When to Use It

Use the Hierarchy of Marketplaces when you need to:

  • Launch a new marketplace and decide where to focus
  • Diagnose why growth is stalling despite increasing GMV
  • Decide when to expand to new markets or categories
  • Evaluate marketplace health beyond top-line metrics
  • Compete against incumbents with more resources
  • Raise funding and demonstrate real marketplace value
  • Choose between depth and breadth in your growth strategy

When Not to Use It

  • You're building a product without two-sided network effects
  • You have unlimited capital and no competition (rare)
  • The market has no potential for winner-take-most dynamics
  • You're optimizing a mature, already-dominant marketplace

Resources

Posts by Sarah Tavel:

  • Hierarchy of Marketplaces series on Medium

Books:

  • Platform Revolution by Parker, Van Alstyne, and Choudary
  • The Cold Start Problem by Andrew Chen

Further Reading

FAQ

What does the hierarchy-of-marketplaces skill do?

Use when asked about "marketplace strategy", "chicken and egg problem", "liquidity", "two-sided market", "tipping a marketplace", "GMV growth", or "Sarah Tavel marketplaces". Helps founders and product leaders build defensible marketplace businesses by sequencing supply and demand. The Hierarchy of Marketplaces framework (created by Sarah Tavel / Benchmark) provides a progression from focused launch to market dominance.

How do I install hierarchy-of-marketplaces?

Run npx skills add https://github.com/pmprompt/claude-plugin-product-management --skill hierarchy-of-marketplaces in your project. The skills CLI detects the agents you use and copies the skill into the right folder. For Claude Code you can also place the skill folder at ~/.claude/skills/hierarchy-of-marketplaces/ (personal) or .claude/skills/hierarchy-of-marketplaces/ (project).

Which AI agents can use hierarchy-of-marketplaces?

Any agent that supports the open Agent Skills format (a folder with a SKILL.md file), including Claude Code, Codex, Cursor, GitHub Copilot, Gemini CLI, Windsurf, Cline, OpenCode and more.

Is hierarchy-of-marketplaces safe to install?

No partner security audit is available yet. Skills can run commands and scripts, so read the SKILL.md and any bundled files before installing.

Who maintains hierarchy-of-marketplaces?

It is published by pmprompt in pmprompt/claude-plugin-product-management. It has 338 recorded installs.

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