The Evolving Economy: Building Platforms for Success

Kazuki

Hatched by Kazuki

Sep 02, 2023

4 min read

0

The Evolving Economy: Building Platforms for Success

In today's digital age, where information is at our fingertips, it's no surprise that the way we consume content and interact with platforms has drastically changed. With the rise of social media and online platforms, we find ourselves constantly bombarded with articles, links, and content that we may not even fully read or understand. The phenomenon of people sharing articles without actually reading them has become so prevalent that it has even led to humorous comments such as "You Won't Finish This Article." This begs the question: what is the relationship between scrolling through content and sharing it?

Surprisingly, there seems to be a weak correlation between scroll depth and sharing. Research conducted by Schwartz reveals that only a small percentage of individuals actually read articles in their entirety before sharing them. This means that when you see someone recommending an article online, it's not a guarantee that they have actually read it themselves. In a world where content is constantly being shared and consumed, it's important to be mindful of this fact and not blindly trust the recommendations we come across.

But let's take a step back and look at the bigger picture. Over the past few decades, we have witnessed the emergence of various "economies." It all started with the "Information Economy" in the 90s, where knowledge and data became valuable commodities. Since then, we have seen the rise of the Attention Economy, the Sharing Economy, the On-Demand Economy, the Crypto Economy, the Creator Economy, and the Ownership Economy. Each of these categories represents a shift in how we interact with and derive value from platforms and services.

One common thread among these economies is the concept of economic empowerment. Jeff Jordan, a seasoned entrepreneur who has been involved in successful ventures such as eBay, OpenTable, and Airbnb, believes that the secret to success lies in building things that help people make money. This notion is not limited to a specific economy but applies across the board. Platforms that can position themselves as central nodes in their own economies, facilitating financial growth for their users, are more likely to thrive in the long run.

Interestingly, many consumer platforms that we are familiar with today, such as Instagram, YouTube, and Twitch, did not start out with the intention of helping people make money. They were initially created to provide fun, connection, and a sense of status or fame. However, as these platforms grew, their users realized the potential to monetize their content and build income streams. This realization changed the trajectory of these companies, transforming them into lucrative platforms that enable economic empowerment.

Enter the "creator economy." With the rise of social media and the increasing accessibility of content creation tools, becoming a creator has become an enticing career path for many. The allure of fame, connection, and creative freedom has made the creator economy a force to be reckoned with. As Vitalik, the co-founder of Ethereum, famously said, "even a billion dollars of capital cannot compete with a project having a soul." In other words, the soul of a platform lies in its ability to inspire and motivate people, making it fun, cool, and interesting enough to sustain a real economy and help individuals make money.

So, whether you're a founder or an investor, the key question to ask yourself is whether your platform has the potential to become part of "The ____ Economy." Are you building something that can inspire and motivate people? Does it have the capacity to sustain a thriving economy and empower individuals financially? These are crucial considerations in today's digital landscape.

In conclusion, the evolving economy is a fascinating phenomenon that shapes the way we interact with platforms and consume content. From the early days of the Information Economy to the current dominance of the Creator Economy, the underlying principle of economic empowerment remains constant. As we move forward, it's essential to recognize the potential of platforms that can facilitate financial growth for their users. So, whether you're a user, a creator, or a platform builder, here are three actionable pieces of advice to keep in mind:

  • 1. Focus on building something that is fun, cool, and interesting enough to inspire and motivate people. The initial appeal of a platform plays a crucial role in attracting and retaining users.
  • 2. Strive to create an ecosystem that can sustain a real economy. Find innovative ways to enable users to make money and derive value from the platform.
  • 3. Embrace the concept of economic empowerment as a driving force behind your platform. By helping people make money, you increase the chances of long-term success and user loyalty.

The future of the economy lies in our ability to adapt and harness the power of technology to create platforms that not only entertain but also empower individuals financially. So, whether it's "The Creator Economy" or the next big wave of innovation, the potential for success lies in our hands.

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