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Platform Revolution chapter 6, G2 (IPCM3_Andrea, DICE2_Jeff, IBS(M1)…
Platform Revolution chapter 6
Ways to monetize
Charging for access
Charging producers for access to community
Charging the third parties for access to community
If the added content enhance the value of it the platform
Charging for enhanced access
The provision tool that enable a producer to stand out
Create prominent placement that the producers can pay for
Ensure consumers can easily distinguish between contents
:warning: Must enhanced access to users, otherwise might increase the noise level
Charging transaction fee
Only happened when transcation occurs
Would not discourage buyers and sellers to participate
Would not hamper the growth of network effect
Prevent participants from connecting
Making platform itself the only one who can provide all informations
Charging for enhanced curaion
Maintain positive network effect
Balance quality and
quantity
Consumers’ willing to pay (WTP)
Guarantee the quality when too much players join the platform
Whom should you charge? :silhouettes:
4 decisions
Charging all users
discourage participation, thereby reducing or destroying network effects
a
few cases
_
enhances
network effects
E.g. - Carbon NYC
Charging one side while subsidizing another
Charge category A _ category B is free (or even subsidize or incentivize)
When :question:
A
highly value the opportunity to make contact with
B
E.g.
Offline - bars and pubs
Online - Dating websites
Charging most users full price while subsidizing stars
Choose to subsidize or incentivize stars—superusers whose presence attracts large numbers of other users
E.g.
Offline - Target
Online - Skillshare and Indiegogo
Charging some users full price while subsidizing users who are price-sensitive
Why :question:
some users are most
sensitive
to
pricing
Price Sensitive - discount
or subsidize :heavy_dollar_sign:
Price Insensitive - full freight
4 ways of excess value create
For Porducers or third-party providers
Acess to a community or market
For both consumers & producers
Acess to tools and services that facilitate interaction
Access to curation mechanisms that enhance the quality of interactions
For consumers
Acess to value created on the platform
Monetization 💲
Capturing a portion of the excess value creation.
How design decisions impact the transition to monetization
Avoid charging for value that user previously received for free.
People would
leave the platform
if they're told to pay for the good and service that have previously for ree.
Strive to create new that making additional value justifies the charge.
Ensure that if you charge for enhanced quality, you control for it and guarantee it.
Avoid reducing access to value
that users have become accustomed to receiving
Ex. Facebook providing premium content promotion to pay producer led to complaints
Platform manager should take potential monitization strategies into account in every decision they make.
Consider potential monetization strategies when intially making platform design choices
Monetization directly impacts how open or closed the platform is.
G2
IPCM3_Andrea
DICE2_Jeff
IBS(M1)_Emerald
IPCM4_Emily
Ex: Dribbble
Ex: Yelp
general goal of
encouraging positive interactions
=
create value
for all participants :confetti_ball:
platform rarely charge all their users like pipeline business