Aggregator business model gather multiple products and services from different providers and bridge them to consumers. They make the fragmented market easily accessible for customers, and they earn a commission on every transaction. The model also makes it easier for service providers to scale their operations and reach new audiences.

How does an aggregator make money?

Most of the aggregators have their own domain expertise in both business infrastructure and marketing aspects. They help their partners attract more customers and generate revenue by providing them a platform with standardized pricing and quality standards.

The aggregators’ biggest asset is their data. They gather heaps of information about the consumers, their preferences and the businesses that appeal to them. In turn, they use that data to improve their platforms and bring in more folks like you. This creates a great network effect and leads to exponential growth in the business.

An aggregator business model is a great solution for entrepreneurs looking for ways to reduce operating costs and grow their businesses faster. By combining various products and services under one brand, they can create a unique offering that is appealing to the consumers and profitable for the providers.

Moreover, they can achieve economies of scale by reducing advertising and other operational costs and pass the savings to their consumers. As a result, they are an attractive option for both small and large-scale enterprises that want to make the most of the digital landscape. For example, Amazon is an aggregator that offers its customers a wide range of options under one single brand name.