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CDPSG1[PR] Chapter 5&6, G1 (Tammy, Linn, Jeremy, Ian), Sender shares…
CDPS
G1
[PR] Chapter 5&6
8 Launch Strategies
Single-Side Strategy
Build one side first (usually supply)
Solves chicken-and-egg problem
Let the other side join later
Big-Bang Adoption
Massive launch all at once
High cost, high reward
Seed-the-Platform Strategy
Bring initial high-quality users
Create early value
Micromarket Strategy
Start with a small dense market
Achieve early network effect
Piggyback Strategy
Leverage existing platforms
Import users or content
Producer Evangelism
Attract creators/producers first
Supply side drives demand
Follow-the-Rabbit Strategy
Build a demo product
Use it to show value
Marquee Strategy
Their presence pulls others
Attract influential partners
Viral Growth
The user-to-user lauch mechanism
4 key elements
Value Unit
The basic communication unit of the platform
It must be
"shareable".
Clear value identification
External Network
The place where value units are propagated
Minimize friction in each sharing session
Diversified channels
Sender
Sharing content thus initiates a cycle that brings in new users.
Sender's passion becomes the platform's growth engine.
The platform's core resources
Recipient
See potential new users in the value unit
The essence of viral growth
User → User Pull Growth
High speed, expandable
How to integrate
viral growth
with
the platform's core values
Pull-Based Strategy
Focus on user commitment and activity
Design incentives to encourage user participation.
Reward sender
Provide tools to improve content quality
Make it easy for users to create and share.
Piggyback Strategy
Acquiring users through existing platforms
Frictionless Entry
Convenient registration
reduces "action costs".
A clear value proposition
reduces the "cost of understanding".
Convenient registration reduces "action costs".
Revenue Stream (MONETIZATION)
Numbers alone don’t guarantee revenue
CHARGING A TRANSACTION FEE
Charge per transaction
(percentage or fixed fee)
(Eg.Uber, AirB&B, eBay, Upwork)
Why it work
Users can join freely and only pay when they get value.
As the number of transactions grows, so does revenue.
Weakness
Off-Platform
Solution: Ensure the platform delivers clear benefits
User Resistance to Fees
Solution: Offer Complementary Services
Dependence on High Transaction Volume
Solution: Balance fees and value created
Transparency Issues
Solution: Make fees clear and predictable
Negative network effects from overcrowding or low-quality interactions
CHARGING FOR ACCESS
Pay to reach community
(right to reach platform’s community of users)
(Eg. LinkedIn recruiter, Facebook Ad.)
Why it work
enhances the platform’s value for users.
interactions are relevant and beneficial rather than random Ads.
Weakness
Risk of Weakening Network Effects
Solution: Charge Producers, Not Users
Producers struggle to stand out in crowded marketplaces
CHARGING FOR ENHANCED ACCES
Producers pay for visibility or better tools
(pay for extra exposure or better targeting)
(Eg. Google Search SEO, Facebook)
Why It work
helping valuable producers reach the right consumers.
Customers can distinguish between organic and paid content
Weakness
Too much paid promotion can irrelevant or low-quality options.
Ensure that free participation remains valuable.
Users overwhelmed by too much content, need trusted quality
CHARGING FOR ENHANCED CURATION
Consumers pay for guaranteed quality
(pay for access to curated quality)
(Eg. Sittercity)
Why It work
satisfied users stay longer and recommend the platform
transforms overwhelming abundance into trusted value
4 Types of Value Created by Platforms
For Producers / Third-Party Providers
Access to a community or market
Airbnb landlord, LinkedIn
Shared by Both Sides – Tools & Services
Facilitate interactions with reduced friction
Kickstarter, eBay＋PayPal
For Consumers
Access to value created on the platform
YouTube
Shared by Both Sides – Curation
Better matching and interaction quality
Ranking, recommendation, and search platforms
4 Key Principles of Transitioning from Free to Fee
Do not charge for value that used to be free
Avoid negative reactions from users
Do not reduce access to existing value
Preserve the strength of network effects
Create NEW, premium value worth paying for
E.g., Higher visibility and better matching
Consider monetization in early platform design
Maintain control over transaction flows, data, and access channels
Connection to Revenue Streams
RS can only be sustained when network effects are strong
Design for participation first → capture value later
Value creation enables future monetization
Align monetization methods with the type of value being created
G1
Tammy
30%
Linn
25%
Jeremy
30%
Ian
30%
Sender shares Value Units
External Network
Recipient receives value units
Register and participate
Viral Loop