Status as a Service (StaaS) — Remains of the Day: Why most online communities fail — and how to build a better one!

Status as a Service (StaaS) — Remains of the Day: Why most online communities fail — and how to build a better one!

In the world of social networks, there is a constant pursuit of social capital. People are drawn to these platforms because they want to accumulate social capital, to earn status among their peers. But what exactly is social capital, and how do we measure it?

Social capital can be seen as the accumulation of assets within a social network. It is the currency of status games, where individuals compete to earn recognition and influence. And while the concept of social capital is not new, the rise of social media has given it a new dimension.

One of the key aspects of social capital is its scarcity. Just like with cryptocurrency, if everyone can achieve a certain type of status, it loses its value. That's why successful social networks have a proof of work hurdle, a way to differentiate among users and make the competition for attention more intense.

But how do social networks create this proof of work? It often comes in the form of a unique status token, earned through a distinctive skill or talent. It's not just about being a user, but about bringing something valuable to the table. This is where the concept of the "fame game" comes into play. Those who have already accumulated social capital in another status game, like celebrities or influencers, bring their pre-existing social capital to the new network, giving them an advantage in the competition for attention.

However, as more people join a social network, the competition for attention becomes more intense. Unless you have incredible exogenous social capital, the chances of gaining a massive following immediately are slim. Value is tied to scarcity, and scarcity comes from the proof of work required to earn status.

So how can social networks continue to thrive in this competitive landscape? One way is to prioritize distribution for the best content, regardless of the vintage of the user producing it. Distribution is king when it comes to allocating social capital. Another strategy is to find new ways to add value to the community. By constantly adding value and creating meaningful connections, social networks can engage and retain members.

But what about online communities? Why do so many of them fail? One reason is the lack of buy-in from members. Psychology tells us that if people feel invested in something, they are more likely to stick with it. Community leaders need to find a way to get members to buy into the community and actively contribute.

Another challenge for online communities is the overwhelming amount of noise. With thousands of communities vying for attention, it's important to focus on quality rather than quantity. Curated groups of active and engaged members are more valuable than large communities with no meaningful engagement.

Onboarding is another crucial aspect of building successful online communities. Joining a community can be overwhelming, so it's important to design a thoughtful onboarding process that helps new members feel welcomed and involved.

Finally, community leaders should constantly find new ways to add value to the community. Daily contributions are important, but it's the "magical" moments that create emotional connections and illustrate the value of the community.

In conclusion, both social networks and online communities rely on social capital and status games. By understanding the importance of scarcity, prioritizing distribution, and constantly adding value, these platforms can thrive in a competitive landscape. Likewise, online communities can succeed by focusing on quality, investing in onboarding, and finding new ways to add value. The key is to understand the fundamental nature of humans as status-seeking monkeys and build platforms that cater to their innate desires.

Three actionable advice for building successful social networks and online communities:

1. Prioritize distribution: Focus on getting the best content in front of the right audience, regardless of the user producing it. Distribution is key when it comes to allocating social capital.

2. Invest in onboarding: Design a thoughtful onboarding process that helps new members feel welcomed and involved. Make it clear how they can introduce themselves and contribute to the community.

3. Constantly add value: Find new ways to add value to the community on a daily basis. Engage and retain members by creating "magical" moments that illustrate the value of the community and create emotional connections.

By following these actionable advice, social networks and online communities can thrive and create meaningful experiences for their users.