Ooh. I've never heard this term "butterfly market" before, and I might like to know more about it :D
Any good links?
I'd always called these kinds of business "marketplaces," sites like etsy, elance, etc.
A butterfly market just means a large fuzzy cloud of potential consumers and a large fuzzy crowd of potential suppliers that come together in a little body in the middle = so the shape looks like a butterfly.
Take used books, there are 1000s of used bookstores and a million readers. the stores can't all separately advertise to all the readers, so you need a common central marketplace, like amazon, to make it possible.
