Creation: producer who creates value
Consumption: consumer, who consumes value
Curation: To encourage good quality and quantity of value creation, as well as to ensure the right consumers consume it, you need some form of curation.
You need all three actions: Creation, Curation and Consumption to repeatedly occur for the platform to work properly.
Our users interact with software we create. Our product is valuable of itself.
Optimize conversion funnels to grow.
We charge consumers for value we create.
Our users interact with each other, using software we create. Our product has no value unless users use it.
Build network effects before you optimize conversions
We’ve got to figure out who creates value and who we charge for that
e.g. a listing for a marketplace or a video for youtube
a set of actions involved in the creation and consumption of value
a network and an infrastructure that enables this interaction
The goal of a platform is to repeat and optimize the Core Interaction that creates value
Measuring number of Creation and Consumption is often not enough. The percentage of content which gets a minimum engagement is an important indicator of quality
The Problem: Buyers rarely use the marketplace except when they actively need something. If buyers don’t return often, sellers do not see much action on the marketplace. This, in turn, may discourage sellers form participating on the platform
Reputation Systems: Marketplaces like Airbnb and TaskRabbit create stickiness by helping a user build reputation across transactions.
Collection: User collections and collection management tools can make buyers sticky. A wishlist or wardrobe feature allows buyers to collect listings and items of interest.
Personalized Feed: Marketplaces can also improve buyer retention by personalizing. Most buyers will only spend a limited time on the marketplace. The limited time spent on the marketplace caps the amount of transactions a user may engage in.
Influence: Seller-centered marketplaces are different from listing-centered marketplaces. Seller-centered marketplaces allow sellers to brand themselves, build a following and create influence. Sellers regularly push out content on their wares.
Workflow management: In order to create stickiness for both parties on a services marketplace, these platforms are moving from a transaction-only model to a workflow management model. Traditional service based marketplaces often fail to own the transaction.
Substituting transactions with subscription Marketplaces that can offer a fairly guaranteed form of service, often move from an a-la-carte transaction model to an all-you-can-eat subscription model.
Connection: how easily others can plug into the platform to share and transact
Gravity: how well the platform attracts participants, both producers and consumers
Flow: how well the platform fosters the exchange and co-creation of value
The Toolbox creates connection by making it easy for others to plug into the platform. This infrastructure enables interactions between participants. For example, Apple provides developers with the OS and underlying code libraries
The Magnet creates pull that attracts participants to the platform with a kind of social gravity. For transaction platforms, both producers and consumers must be present to achieve critical mass.
The Matchmaker fosters the flow of value by making connections between producers and consumers. Data is at the heart of successful matchmaking, and distinguishes platforms from other business models.
“A platform is a plug-and-play business model that allows multiple participants (producers and consumers) to connect to it, interact with each other and create value.”
Understand the motivations of the creators
Create enabling technology that caters to those motivations
Lower (or completely remove) the barrier to getting something done
Clear strategy to maximize the number of creators
Scaling consumption is a critical step to scaling interactions
capture data about the consumer
start acquiring data about users the moment they sign up
use data to make relevant recommendations
Encourage users to follow topics or listings
create opportunities for transactions in the future without the user explicitly initiating one
Scaling editorial / social curation, Editorial actions scale only when they are gradually moved out to the community over time, Educating the community on how to curate and ensuring that the tools of curation (e.g. rating, review, reporting etc.) are being used correctly and often enough, Reputaion: Differentiate highly reputed users from less reputed ones
Scaling algorithmic curation, improving the algorithms themselves, improving the inputs to the algorithms
creating centralized trust mechanisms becomes critical to ensuring widespread adoption among mainstream users
It describes tactics and processes to help you increase your numbers.