Next, PurchasePro wants to link members of these private-label exchanges into one huge network where buyers and sellers meet and trade. We are building a universal database and trying to get as many people into the platform as possible so they can do business with each other, says Chris Benyo, the head of marketing for PurchsePro. This makes sense, he says, even if firms enter the PurchasePro world through a narrow, specialized marketplace. PurchasePro s goal is to bring them all together in one big, public market, instead of just setting up a private procurement system online. We can create private marketplaces, but the interconnection that we offer is different, says Benyo.
Suppliers are more likely to join a procurement network if they can open up a new sales channel.
Next, these marketplace owners bring in end-users who pay subscription fees. Finally, PurchasePro gets a cut of transactions, and it hopes to get decent ad revenue some day. First, it lets small companies band together to get the purchasing power of larger companies. Next, participants can join the network as a buyer, but then turn into a seller. I can also offer my products over the network.