The Next $1B Consumer Startup: Vertical Social Networks and How to Use What You Read

The Next $1B Consumer Startup: Vertical Social Networks and How to Use What You Read

In today's digital landscape, where users are growing tired of swiping and liking static content, there is a growing demand for more curated and meaningful connections. People are seeking digital experiences that align with their online and offline interests. This is where vertical social networks come into play. These platforms have the potential to be the next billion-dollar consumer companies, as they provide users with the opportunity to share content that can't be posted elsewhere.

One key aspect of successful vertical social networks is providing users with the best tools to enhance their status within their existing network. Platforms like LinkedIn, Clubhouse, and Quora have capitalized on this by allowing users to build a following and establish themselves as experts in their respective fields. This not only encourages frequent engagement but also makes it harder for users to leave the platform. By creating a system of record that holds all the important data related to a user's profile and interactions within the community, these platforms become an integral part of their users' online presence.

Another factor that contributes to the success of vertical social networks is the emergence of new devices and functionalities. New devices often expand the amount of time and the ways in which we can be "present" on social products, opening up new opportunities for engagement. Additionally, these new devices can enable new types of content, which can serve as a launching point for a new social network. For example, augmented reality (AR) filters played a significant role in Snap's success, allowing the platform to expand beyond its initial user base of high school students.

In the realm of content consumption, platforms like YouTube have to cater to a wide range of categories and interests. However, there is a significant opportunity to "unbundle" platforms like YouTube by building products with killer features for specific categories. By focusing on a specific niche and providing unique functionalities tailored to that niche, vertical social networks can attract a dedicated user base who are seeking a more specialized and curated experience.

Now that we've explored the potential of vertical social networks, let's shift our focus to how we can effectively use what we read. Readwise, a platform dedicated to helping readers make the most of their reading materials, emphasizes the importance of a reading workflow. A reading workflow is an external system that transforms reading into meaningful action and lasting insight. It consists of three key steps: Capture, Review, and Integrate.

The first step in a reading workflow is to capture the things that stand out to you while reading. This involves highlighting or taking notes on the content that you find meaningful. The objective is to capture whatever resonates with you, as everyone's reading experience is unique. By capturing these highlights, you create a reliable system outside your mind where you can store and revisit these insights later.

Once you've captured your highlights, the next step is to review them. Without reviewing your captured insights, the act of capturing becomes meaningless. Readwise offers various ways to consistently review your highlights, with the most popular being the Readwise email. This daily email provides you with a curated assortment of your best highlights, serving as a reminder of the valuable information you've captured.

The final step in the reading workflow is to integrate what you've read into your daily life. Integration can take various forms, such as improving retention through spaced repetition or enhancing creativity through the juxtaposition of seemingly unrelated ideas. By integrating what you've read, you increase the chances of making use of the insights you've gained. A well-designed reading workflow resurfaces the important things you've captured, creating repeated opportunities to apply them in your life.

In conclusion, vertical social networks have the potential to be the next billion-dollar consumer startups. By providing curated and meaningful connections, these platforms cater to users' desire for more personalized digital experiences. Additionally, integrating unique features and capitalizing on new devices and functionalities can further drive the success of these networks.

On the other hand, effective reading requires a reading workflow that encompasses capturing, reviewing, and integrating the insights gained from reading. By implementing a reading workflow, you can extract meaningful action and lasting insight from the content you consume.

To make the most of these concepts, here are three actionable pieces of advice:

1. Identify your interests and find vertical social networks that align with them. These platforms can provide a more tailored and meaningful experience compared to traditional social networks.

2. Implement a reading workflow to capture, review, and integrate the insights you gain from reading. Use tools like Readwise to streamline this process and make it a part of your daily routine.

3. Embrace the potential of new devices and functionalities. Stay updated with emerging technologies and explore how they can enhance your social media experience or reading workflow.

By leveraging the power of vertical social networks and optimizing your reading workflow, you can unlock new opportunities for personal and professional growth in the digital age. Remember, it's not just about consuming content but also about making meaningful connections and taking action on what you learn.