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[PR] Chapter 6 & Chapter 9, Undertake and extend, Value Creation,…
[PR] Chapter 6 & Chapter 9
Monetization Strategies
Charging for Access
producers pay
to access target professionals
LinkIn
for job postings
Dribbble
Enhanced Curation
users pay
Subscription for curated courses
Skillshare
Pre-screened babysitters
Sittercity
Enhanced Access
producers pay
for sponsored posts
Twitter
premium listings for restaurants
Yelp
Whom to Charge?
Subsidize One Side
eg, Ladies' Night
women get free access
to attract paying users (men)
Subsidize Stars
subsidize "
Influencers
"
to draw users
Subsidize Price-Sensitive Users
Charge less sensitive user full price
Platform Businesses
Pipeline Businesses
Value Creation
Core Metric
Goal
Profit from streamlined processes.
Community growth and long-term vibrancy.
Efficiency in value flow.
Interaction success and network effects.
Linear flow of goods/services.
Network-driven interactions and sharing.
platform businesses progress through their life cycle
Startup Phase
Building the platform and fostering early interactions.
The ultimate goal is sustaining value creation and positive network effects over time.
:one:
Growth Phase
Monetization and customer retention.
:two:
Maturity Phase
Innovation, competition, and sustained engagement.
:three:
metrics during the growth phase
Stage 1
platform startup phase
Challenges
Limited Resources
High Uncertainty
Inapplicability of Traditional Management Tools
Specialized Metrics for Specific Platforms
Interaction Volume
ex. Fiverr tracks "task transactions" as its core metric.
Value Creation Metrics
ex. Airbnb monitors "nights booked," and Upwork tracks "hours worked."
Engagement Metrics
ex. OpenTable uses "restaurant reservations" as a proxy for interaction value.
Content Relevance
ex. Content platforms can track the percentage of positive user feedback on listings.
Undertake and extend
Stage 2
Interaction Conversion Rate
Side Switching Rate
Producer-to-Consumer Ratio
Growth period
Mature stage
value creation.
:arrow_double_down:
User base growth and balance
:three:Design unique indicators
Lifetime Value, LTV
Exclusive target indicator design
Liquidity
Start-up period
Achieve liquidity to reduce interaction failures and meet user needs.
Track the percentage of products or services that lead to interactions within a specific period.
Trust
Reduce risk and build trust through participant vetting
Matching Quality
Enhance user satisfaction, reduce search costs, and boost engagement.
Track conversion rates from searches to successful interactions
Value Creation
Producer
be encouraged
More
Invest
Increased
Services
Benign Value Creation
Consumer
be attracted
More
Involved
Increased
Demand
Charging model
Producer
Lose Incentive
Less
Invest
Reduced
Services
Benign Value Creation
Consumer
Lose Incentive
Less
Involved
Reduced
Demand
Charging
model
is supposed to let industry
growth
Cheaper
More expensive
Shaver
Blade
Two-sided
Market
Pricing
Photocopier
Toner Cartridge
Platform
YouTube
Android
Skillshare
Create value for online learners.
Create value for program users.
Create value for video viewers.
Create value for consumers.
Producers
think the platform is
Valuable
Aribnb
can access to global travelers
Landlord
🔄 From Free to Fee
start free
Build user base
gradually add paid features
communicate changes
Advanced Concepts
Avoid Premature Monetization
eg.
Myspace
's fail
due to early monetization
Transition Principles
Avoid charging previous free services
Add new value to justify fees
Plan monetization early in design
Reading order
1
2
3
4
G1
Mandel 許詠翔
113212511
Laura 鄭慧真110212088
Yulisa 陳宥妮111212004
Hom 113212527