The Broken Business Models of SoundCloud and the Importance of User-centric Onboarding

The Broken Business Models of SoundCloud and the Importance of User-centric Onboarding

Introduction:
SoundCloud, once hailed as the go-to platform for independent artists, has faced significant challenges in recent years due to a broken business model. From the abuse of features to the flood of derivative copyrighted material, SoundCloud's missteps have driven artists away. In contrast, effective onboarding strategies have become crucial for product success. By putting ourselves in the users' shoes and continuously improving the onboarding process, we can ensure a better user experience and drive customer satisfaction.

SoundCloud's Downfall:
SoundCloud initially allowed artists to repost their own tracks, but this feature was quickly abused, pushing their content to the top of followers' feeds repeatedly. The platform experimented with various business models, including ads and premium accounts, but the prevalence of copyrighted material and confusing paid tiers caused contention among creators. Unwarranted takedowns, lack of attention to creators' needs, and the influx of undisclosed advertising further deteriorated SoundCloud's reputation.

The Rise of Artificial Boosting:
Years of unchecked abuse on SoundCloud led to an influx of mediocre music, paid for by artists, labels, and blog accounts. Services emerged that allowed artists to buy fake listens, likes, and followers at minimal costs. This manipulation of numbers further diluted the quality of content on the platform, making it difficult for genuine artists to gain recognition.

The Spotify Paradigm:
Spotify, on the other hand, introduced an embeddable player and a web player, revolutionizing the music streaming industry. By offering fully licensed tracks and guaranteeing royalties to record labels, Spotify attracted major artists and discouraged the remix culture that had helped SoundCloud thrive. SoundCloud's lack of viable monetization options for indie artists further pushed them towards platforms like Spotify.

The Neglected Indie Artists:
SoundCloud's founders promised monetization tools for years, but indie artists that formed the backbone of the platform are left with limited options. The company's heavy-handed content policing and one-sided relationship with creators have fractured the once tight-knit community. SoundCloud's failure to prioritize the needs of its creators has led to a sense of disillusionment and a desire to seek better alternatives.

The Importance of User-centric Onboarding:
In contrast to SoundCloud's missteps, successful onboarding plays a vital role in product adoption. The initial moments when a user tries a product are the most crucial for capturing their attention. By creating a longer onboarding flow that guides users through the product's features, we can ensure a better understanding and higher engagement. Actively questioning each step and experiencing confusion firsthand helps identify areas for improvement.

Emphasizing User Perspective:
When testing the onboarding process, it is essential to put ourselves in the users' shoes and consider their concerns and potential confusion. Users may be nervous about making mistakes or not fully understanding the product's purpose. By addressing these concerns and clarifying the product's value proposition during onboarding, we can alleviate user anxiety and increase their confidence in using the product.

The Ultimate Test:
One of the most critical questions to ask users after completing the onboarding process is, "What do you think the product does?" If users can accurately describe the product's purpose, it indicates successful onboarding. This feedback helps identify any gaps in conveying the product's value and guides further improvements.

Actionable Advice:

1. Prioritize user experience: Continuously evaluate and refine your onboarding process to ensure it aligns with user needs and expectations. Remember that the initial experience can make or break a user's perception of your product.

2. Test your own onboarding: Actively engage in the onboarding process yourself, questioning each step and experiencing confusion. This firsthand perspective will help uncover areas for improvement and enhance user understanding.

3. Seek user feedback: Regularly gather feedback from users who have completed the onboarding process. Ask open-ended questions to understand their perception of the product and identify any gaps or areas that require further clarification.

Conclusion:
SoundCloud's broken business model and neglect of its creators serve as valuable lessons for product development and onboarding strategies. By prioritizing the user experience, continuously refining the onboarding process, and seeking user feedback, we can create a seamless and engaging onboarding experience that drives product success. Remember, the moment someone tries your product is the most crucial opportunity to capture their attention and ensure their long-term satisfaction.