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Chapter 6 – Monetization: Capturing the value created by the network…

- - - - Reduce potential interaction volume
      - Put terrible friction on entry
      - Discourage many potential users
      - Reduces volume of data that matches consumers and producers
  - - - Provide tools and services to make profile completion effectively
      - '' scrapers ''
    - - Charge should be levied on deal completion, not at the time of listing
      - Charge ad agencies for helping them do a postmortem to discover why they lost a deal
      - Charge users for the value they accrue from the ecosystem
- - - - Distribute free razors while charge for blades
    - - Toner cartridges generate profits that relatively cheap printers don’t produce
    - - A free layer of service attracts users who eventually pay for enhanced version
        
        Dropbox
        
        MailChimp
  - - - An online guide to local events in the Bay Area
      - A risky and successful decision
        
        Charge meetup organizers
        
        The potential for drastically diminishing the scale of the platform
        
        Quality of the interactions generated and improved significantly
        
        Weaken its network effects
  - - - For both consumers and producers: Access to curation mechanisms that enhance the quality of interactions
        
        Consumers value access to high-quality goods and services that address their specific needs and interests
        
        Producers value access to consumers who want their offerings and are willing to pay a fair price for them
      - For both consumers and producers: Access to tools and services that facilitate interaction
        
        eBay, combined with PayPal, allows anyone to start an online store that serves customers worldwide
        
        YouTube allows musicians to provide their fans with performance videos, without having to produce CDs or DVDs
        
        Kickstarter helps creative entrepreneurs raise money for new projects
- - - - Bars and Pubs in the offline world have long used this strategy by offering Women free or discounted drinks on Ladies’ Nights.
        
        Man pay full fee
    - - Certain platforms choose to subsidize or incentivize stars
        
        offline business(Malls)
    - - Charging all users would, in most cases, discourage participation, thereby reducing or destroying network effects
      - In a few cases, charging all users actually enhances network effects.
        
        Carbon NYC
    - - Real-world experience shows that it can be difficult to predict which side of a platform market is likely to be more price-sensitive.
        
        Real estate agents(During the 1990s)
- - - - allow men to see profiles of women without revealing identifying details.. Users who pay a subscription fee are allowed access to additional information
        
        Men pay subscription fee
    - - Offers restaurants enhanced visibility and better branding on its platform by charging for a premium listing in search results.
        
        Restaurants pay for this service.
- - - - unique lingo
        
        foster a highly engaged community
        
        to protect the long-term value of this specialized community
        
        Dribbble has invited third parties to pay for access to the community
        
        e.g companies looking for designers
        
        benefit both parties
        
        Designers
        
        1 more item...
        
        companies
        
        1 more item...
    - - allows recruiters to present job opportunities
      - offers companies the ability to compare and target professionals based on their résumés and professional brands.
      - encourages users to update their profiles more often
        
        keeping the platform active and healthy
- - - - The growing number of students who choose this model get better value per course consumed, while generating recurring revenues for the platform.
- - - - Also, avoid reducing access to value that users have become accustomed to receiving
      - Instead, when transitioning from free to fee, strive to create new, additional value that justifies the charge.
      - If possible, avoid charging for value that users previously received for free
      - Consider potential monetization strategies when making your initial platform design choices.
      - Finally, Platform managers should take potential monetization strategies into account in every decision they make regarding platform design
- - - - involves an exchange of money
  - - - platforms that connect service providers with service consumers
        
        Fiverr, Groupon, and Airbnb
        
        temporarily preventing participants from connecting
        
        These platforms try to provide all the information a consumer needs to make an interaction decision, without connecting the consumer directly with the producer.
        
        service provider platforms that want to capture and monetize interactions must create tools and services
        
        removing friction, mitigate risk, and otherwise facilitate interactions