RIABiz

News, Vision & Voice for the Advisory Community

RIABiz

Market76's young Ivy League founder is threading a business-model needle and extending his mother's legacy

Over 2,000 advisors were added in nine months and the free software is looking like it's worth more than what you pay for it

Tuesday, January 8, 2013 – 6:31 PM by Kelly O'Mara
Admin:
no description available
Ethan Eden: The business model is sustainable. It's a much larger opportunity than to simply charge advisors.

Related Moves

Oisín's Doubletakes: Clara Shih returns to Salesforce after 11-year hiatus • Focus reloads for M&A with $500 million debt raise, taking its credit north of $1.5 billion • Goldman Sach's 2020 partners list looks less homogenous -- even 'accretive' of women

Former HearSay CEO returns to her mother corporation • Focus Financial Partners debt levels soar 50% on fresh debt issuance • Goldman adds diversity, but snubs Marcus partnerships

February 6, 2021 – 2:39 AM


Mentioned in this article:

SalesForce
CRM Software
Top Executive: Marc Benioff

FPPad.com
Consulting Firm
Top Executive: Bill Winterberg




Doug Throckmorton

Doug Throckmorton

January 8, 2013 — 8:11 PM

I have seen this product and met its founder, Ethan Eden; they are both great. Early adopters will love it and it will turn the reporting technology business on its head. I had some of the same concerns about privacy and compliance but proper documentation and due diligence can overcome those.

Stephen Winks

Stephen Winks

January 8, 2013 — 8:44 PM

The determination of sucessful future product offerings based on past offerings/trends seems to preclude product innovation as it must have already occured. Market76 is really confirmation rather than determination. Certainly confirmation is important, but just not for market leaders that drive innovation. That said, the sucess of this new revenue model is promising, but only if it is at the forefront of innovation, rather than on the tail end when it is too late.. It would only document the jestation period for inniovation to be adopted and would always be a lagging indicator for innovation..

The key to advancing innovation is large scale adoption by leading distribution firms and sponsorship of credible vendors with great brands and broad based distribution. Of course, the presumption is that distribution firms are interested the client;s best interests or even the best product—which is proven not to be the case .So the burden in advancing innovation is still on the product vendor even with Market 76 data.

Perhaps Market76 can pioneer the advancement of innovation through no cost advcisory services support, but it seems to be built to support convention and status quo.

SCW

Joe Anthony

Joe Anthony

January 8, 2013 — 10:01 PM

The reality is that CRM is becoming a commoditized business, or at the very least, an area facing pricing compression. The options for advisers are fairly wide. Eventually, the price points will be forced so low anyway that those in the game might as well account for little or no revenue from the licensing. Where the value is to be harnessed lies in how the underlying data might inform the adviser’s decisions. Facebook, LinkedIn, Google and others already use similar models to gather data and feed users ads that tie to their activity and data. Obviously, financial services firms operate under different rules but consumers haven’t been deterred by what they know Facebook, Google and others are doing.

Chad Snyder (Ebix)

Chad Snyder (Ebix)

January 8, 2013 — 11:42 PM

Interesting point Joe, but I think there is a good bit of difference between the business model of CRM versus that of Facebook, LinkedIn and Google. Nevertheless, the push towards deep data is being explored by almost everyone that does business on the web, including most CRM companies.

If every CRM starts doing a similar thing — and there are plenty of data companies offering widgets for such capabilities — wouldn’t there also be pricing compression in this revenue model as well?

Additionally, Market 76 has tried to keep its platform clean and simple. On one hand that simplicity can be great, on another hand it might mean that Market76’s data doesn’t go as deep as other CRM vendors, for instance. Vendors that enable advisors to wrap their arms around their clients so that advisors can intimately know their book of business might offer more valuable mining opportunities as the data is simply, deeper.

Still, I agree that ever greater competition and better technologies will scale down the costs of CRM, but I doubt deep data will be the sole key to CRM profitability. It’ll simply be one revenue stream — if it passes all compliance tests. Regardless, CRM companies are evolving well beyond CRM. CRM is still the glue, but it’s as much about deep and clean interoperability as it is about contact management.

Until this all plays out; however, kudos to Market76 for thinking outside of the box.

Stephen Winks

Stephen Winks

January 9, 2013 — 12:13 AM

There are massive scale technologies comming out of defense contractors which have made this a science. Market 76 is interesting in principle but is only playingat the edges. The best technology has yet to be applied to the advisory services or brokerage worlds. 20 years ago a Boston company made a run at this but ran afowl of the then prevailing privacy laws. This has evolved and now might be the time.

The best applications might be for advisors in managing client inclinations, which informs investment strategy.

SCW

Ari Kalfayan

Ari Kalfayan

January 9, 2013 — 3:13 AM

Love the concept and support the team100%!!!!

Ari Kalfayan

Ari Kalfayan

January 9, 2013 — 3:13 AM

Love the concept and support the team 100%!!!!

Mark Wickersham

Mark Wickersham

January 10, 2013 — 3:49 PM

I think it is an interesting concept and could lead the way for other vendors to look at the RIA market as a more attractive segment, which would be good thing for all advisors. This is a model that has worked on the consumer side and trends in consumer technologies are starting to have a big, positive impact on the professional space.

Advisors should consider the business health of vendors in the selection process for mission critical applications like CRM and client reporting. It sounds like Market76 may be onto a viable model. I wish them the best of luck.

Roger Rabbit

Roger Rabbit

August 2, 2015 — 8:08 PM

Met this overpaid numty and wouldn’t trust him with one dollar of my money

RIABiz Directory

The Industry Sourcebook for RIAs

   |    LISTING


RIABiz Directory sponsored by:

Directory Sponsor Logo