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What is considered turnover vs. revenue for a platform like Airbnb/Etsy?

Elke Vanwijnsberghe's Profile

I am currently creating an online platform where people can offer services. A simple example to explain. Person X is very talented in service design and offers his services on the platform. Company Y urgently needs help for designing a new client offering and decides to hire person X through the platform.

Price set by person X is 100 EUR and the platform takes a margin of 5%.

What is the turnover in the accounting of the platform?
Only the margin, being 5?
Or the total amount in turnover, being 105 vs. a cost of sales of 100?

Many thanks in advance and have a nice day!



Len Green
Title: Performance Improvement Consultant and E..
Company: Haygarth Consulting LLC
LinkedIn Profile
(Performance Improvement Consultant and ERP Strategist, Haygarth Consulting LLC) |

What is your role?
1. Reseller of the design service?
2. Broker/agent to connect buyer and seller?

Do you assume liability to deliver the design deliverable?
1. What happens if buyer dislikes the work done?
Do the two parties sort that out among themselves?

2. Who pays you/who do you pay?
Unclear in your example above- it seems the seller would receive EU95?

Victor Shah
Title: Account Manager
Company: FlowRocket, LLC
(Account Manager, FlowRocket, LLC) |

I agree with Len. If you are taking the accountability of the final service to be delivered and if you are acting as reseller your trunover is 105 or in case of brokerage, your revenue is only $5. To get people on boarded and contact each other, whatever you spend is your cost of sales.


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