Come for the Network, Pay for the Tool

Bloomberg is an example of the classic Web 2.0 business maxim “come for the tool, stay for the network.” But the inverse trajectory, from which this essay takes its name, is now equally viable: “come for the network, pay for the tool.” Just as built-in social networks are a moat for information products, customized tooling is a moat for social netw... See more

A new business type here is the paid community: a direct subscription to join in. Today, most paid communities live on the outskirts of existing social platforms. But as they become normalized, paid communities are becoming a viable business model for smaller-scale social networks aiming to be both profitable and socially sustainable. 

Success here will come down to implementation details. The incentive structure, funding sources, size, goals, moderation approach, and community management philosophy of these networks will determine their long term viability as both businesses and communities. Whether coming at it from the angle of social media, brand, or content creator, building... See more

I think we will gain the most learnings about the future of business and identity not from top-down corporate models of community management, but from friends, squads, and content creators starting groups and supporting the legitimate participation of community members in their ongoing development, finance, and governance. 

Success here will come down to implementation details. The incentive structure, funding sources, size, goals, moderation approach, and community management philosophy of these networks will determine their long term viability as both businesses and communities.

Finally, commerce and social are coming together, although to much less a degree than marketing teams who talk up “brand communities” would like you to think. In all but a few cases, “community” here is just the marketing language used to describe a microbrand’s niche Instagram fandom. To me “community” implies users regularly engaging with each ot... See more

Because the mainstream social networks have been designed by a tiny number of people, we have been prevented from experimenting and creating new knowledge about what sustainable community management online looks like. Start erasing the line between operators, customers, and community members disappears, and squint; you begin make out the shape of a... See more

New social networks have typically struggled to monetize due to their small audience sizes, as they are unable to achieve the scale to make meaningful revenue from advertising. Paid communities, however, supply an engaged and paying audience, providing an alternative route to sustainability for independent social networks.

Content and social are also unifying, with Twitch streaming and YouTube being the biggest video players. Meanwhile paid newsletters have taken off in a big way in the last two years. In content + community, an audience connects around a specific content producer through some platform.