Marketplace platforms for service businesses typically take one of two approaches to revenue: a monthly subscription with no commission, or a free/low-cost listing with a percentage of each booking. The second model is where most businesses lose more than they realize.
Let us run the numbers on a real scenario.
Scenario: a mid-size beauty salon
A salon with:
- 4 stylists
- 25 appointments per stylist per week = 100 appointments/week total
- Average service value: €55
- Weekly revenue: €5,500
- Annual revenue: ~€286,000
The commission calculation
Marketplace commission rates vary by platform and market, but a common range for service businesses is 20–30% on the first booking from a new client, or a flat fee per transaction.
For this scenario, let us use a conservative example: the platform takes 20% on all bookings made through their platform. If 50% of the salon's bookings come through the marketplace:
- Marketplace bookings: 50 appointments/week
- Revenue through marketplace: €2,750/week
- Commission at 20%: €550/week
- Annual commission cost: €28,600
That is nearly 10% of total revenue going to a platform.
The "discovery" math
Marketplaces justify their commission by arguing they bring you new clients you would not have found otherwise. This is true — for new clients.
The problem is that the commission applies to all bookings, including repeat clients who already know you. A client who has been coming every 6 weeks for 2 years and still books through the marketplace because that is where their history is — you are paying commission on every one of those appointments.
If 70% of your marketplace bookings are from repeat clients and only 30% are genuinely new client discovery:
- Commission paid for new client discovery: €8,580/year (worth it if those clients stay)
- Commission paid on repeat clients who could book directly: €20,020/year (not worth it)
The lifetime value comparison
Consider a client who visits 8 times per year at €55. Over 3 years, they generate €1,320 in revenue.
If every one of those bookings goes through a marketplace at 20% commission, you pay €264 in commission over the 3-year relationship — on a client you already earned and did not need the marketplace to find for you after year 1.
Over 3 years, if you move this client to direct booking after their first visit, you save roughly €218 in commission (26 repeat bookings × €55 × 20%). Across 50 long-term clients, that is €10,900.
What direct booking actually costs
A dedicated booking platform for direct client management typically costs €50–200 per month in subscription fees, depending on features and team size.
For the salon in our scenario:
- Direct booking platform: €100/month = €1,200/year
- Commission saved by moving repeat clients off marketplace: potentially €15,000–20,000/year
The math is not subtle: a flat-rate booking tool pays for itself within the first month of commission savings.
The transition strategy
You do not need to abandon marketplaces. They still work for discovery. The goal is to move clients to direct booking after their first marketplace visit:
- After every first appointment, give the client your direct booking link
- Show them how to install your branded app
- Offer a small incentive for booking directly — not a discount on the service, but something like a reminder preference or priority scheduling for direct clients
Every client you move to direct booking is commission you stop paying, forever.
Platform-specific notes
Commission structures vary significantly. Fresha positions itself as "free" but earns revenue through payment processing and optional paid features. Booksy charges monthly subscription fees plus optional promotional features. Vagaro has tiered pricing by number of locations.
Read the full fee structure of any platform you use, including payment processing fees. The headline number is rarely the full cost.