"The Next Phase of Social? Listen Closely: Reid Hoffman's Two Rules for Strategy Decisions"

"The Next Phase of Social? Listen Closely: Reid Hoffman's Two Rules for Strategy Decisions"

The rise of audio apps has brought a new level of convenience and intimacy to the world of content consumption. Whether it's podcasts or music, the ease of listening to someone's voice has attracted a growing number of enthusiasts. In addition to the personal connection it fosters, audio content emphasizes ideas over visuals, providing a deeper and more intellectually stimulating experience. The popularity of podcasts has skyrocketed in recent years, with over half of the US population tuning in to millions of shows.

What makes audio content inherently social is the emotions it evokes. The power of sound, whether it's the swell of a concert, a baby's laugh, or the roar of a stadium crowd, has the ability to bring people together. This social aspect of audio has paved the way for innovation in the realm of social audio experiences. One such example is Clubhouse, a platform that combines the elements of a conference call, a podcast, and a live talk show. While the content on Clubhouse is ephemeral like a phone call, it also provides a public platform for live podcasting.

The possibilities for audio apps are endless. By combining different attributes such as one-way broadcasting, ephemeral conversations, and public platforms, new and cohesive products can be created. This opens up avenues for innovation in the content format, the evolution of the business model, and the growing ubiquity of audio.

One area of innovation in the content format could be the emergence of long-form audio with a twist. Imagine a platform that focuses on high-quality educational content or short stories from prominent authors. By providing a unique and valuable content format, such a product could attract a dedicated audience.

The evolution of the business model is another aspect to consider. In an ad-driven world, creators often under-monetize their audiences. However, the success of platforms like Patreon has shown that fans are willing to pay more for exclusive content. The future of social audio monetization lies in native integration, where creators can directly monetize their content without relying on sponsored promos.

In the grand scheme of things, the innovation of audio is following a familiar pattern. Just as the telephone, the steam-powered printing press, and typewriters brought new waves of innovation, audio is poised for a decade of productivity and value. History repeats itself, and the next wave of audio innovation will likely be as fruitful as that of messaging, video, and other media.

Now, let's switch gears and discuss Reid Hoffman's two rules for strategy decisions. Reid is known for his emphasis on speed and simplicity. According to him, speed is crucial in the startup world. He famously said, "If you aren't embarrassed by the first version of your product, you shipped too late." In the fast-paced startup environment, it's important to take risks and iterate quickly.

However, when it comes to big companies like LinkedIn, speed alone is not enough. These companies need to devise strategies that leverage their slowness as a strength. Instead of engaging in pure speed battles, they should focus on areas where their size and resources give them an advantage.

Simplicity is the key to enabling speed. In group decision-making processes, leaders should distill and frame the options with simplicity. Reid often groups the possible options into categories like "light, medium, heavy" or "easy, medium, hard." This simplification allows for faster decision-making and avoids getting caught up in complex pros and cons.

Reid's advice is to seek a single decisive reason to pursue a course of action. If there are multiple reasons that need to be weighed, it's a sign that the decision may not be clear-cut. As Nassim Taleb once wrote, if you need a long list of reasons to convince yourself, you should reconsider the decision.

In conclusion, the next phase of social lies in the realm of audio. The convenience and intimacy of audio apps have captured the attention of millions, and the possibilities for innovation are vast. By focusing on the content format, the business model, and the growing ubiquity of audio, new and exciting social audio experiences can be created. And when making strategy decisions, it's important to remember Reid Hoffman's two rules: speed and simplicity. By embracing these principles, companies can navigate the ever-changing landscape and make informed decisions that drive success.

Actionable advice:

• 1. Embrace the power of audio: Whether you're a content creator or a consumer, explore the world of audio apps and discover the unique experiences they offer. From podcasts to social audio platforms, there's something for everyone.

• 2. Think beyond ads: If you're a creator, consider alternative monetization strategies that allow you to directly monetize your audience. Platforms like Patreon have shown that fans are willing to pay for exclusive content.

• 3. Embrace simplicity: When making strategic decisions, focus on simplicity. By distilling options into clear categories and seeking a single decisive reason to pursue a course of action, you can avoid getting stuck in analysis paralysis and make faster, more informed decisions.