Framework · 1 note · discussed by Lenny Rachitsky

Take Rate Formula

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Lenny’s Newsletter♥ 23

Choosing a take rate

Apr 6, 2021 · 8 min
Subscriber post — summary only

Lenny Rachitsky explains how marketplace and platform builders should choose a take rate, the fee charged on each transaction. He introduces a simple formula combining convenience and demand minus competition, walks…