4% doesn't seem sustainable if they're taking credit card payments. The best they can probably get to is around 1.2% transaction fee (if they've shopped around)

4% doesn't seem sustainable if they're taking credit card payments. The best they can probably get to is around 1.2% transaction fee (if they've shopped around) and this is unlikely given the risk profile of a marketplace like this. I bet they are paying 2.5%+. So 1.5% ($52.50) profit per project? I have to wonder how they came up with 4% (2% per side). Surely 10-20% is still a reasonable fee to connect these parties and manage the relationship. Heck, both I and the purchaser pays 10% to an auctioneer to sell my stuff in < 60 seconds (yes, I know they do a little more than that… but mostly it's about supplying the marketplace).