“How will they make money?” is the wrong question

If you are acquiring tens or hundreds of millions of users with a new kind of service, and they are attributing value and attention to you, and the users, attention and value have network effects and hence probably winner-takes-all effects, and if they come with little or no marginal cost, then the revenue can and probably should come later. It is ... See more

So the question is, how do you get to that scale? There are a million networks that died out before they ever achieved that scale.

Outside of the open web, email, and text, there isn’t a scaled D2C channel that is not controlled by a major platform. So the primary way that startups have to reach customers today is via paid acquisition. That’s why the question an investor asks today to a startup that is scaling is: where are you buying audience and what are your customer acqui

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Independent internet-native creators leverage the internet’s frictionless content creation and distribution, but they’re still trapped by traditional business models like subscriptions and advertising.

A subscription model is based on the promise of the production of future gated content. A publication or creator is paid to continue production, not ... See more

That meant there were three strategies available to media companies looking to survive on the Internet. First, cater to Google. This meant a heavy emphasis on both speed and SEO, and an investment in anticipating and creating content to answer consumer questions. Or you could cater to Facebook, which meant a heavy emphasis on click-bait and human i... See more

It's hard to get around that, but the way you can do it is if you build in utility. And I think that is largely because advertising was a hell of a drug for these companies for so long. That is why all these big internet advertising platforms were slow to become marketplaces, because it would have a temporary negative financial impact. Th... See more