The art of the pivot, part 1: The definitive list of successful pivots
Things to avoid building as an early startup - Numeric
Seven Rules For Internet CEOs To Avoid Enshittification
People forget that when Bezos introduced Amazon Prime, Wall St. flipped out, because they insisted that it would cost way too much for too little benefit. But, through it all Amazon survived (and thrived) because Bezos just kept telling investors exactly what his plan was, and never backed down, no matter what Wall St. kept saying to him.
This is too easily forgotten, but your users are everything if you run an internet business. They’re not “the product.” They’re what makes your site useful and valuable, and often provide the best marketing you could never buy by convincing others to join and providing you with all of the best ideas on how to improve things and make your service even better for the users. The moment you’re undermining your own community, you’re beginning to spiral downward.
As you’re developing a business model, the best way to make sure that you’re serving your users best, and not enshittifying everything, is to constantly make sure that you’re only capturing some of the value you’re creating, and are instead putting much more out into the world, especially for your community.
Push the power to make your service better out from the service to the users themselves and watch what they do. Let them build. Let them improve your service. Let them make it work better for you. But, you have to have some trust here. If you’re focused on “Rule 3” you have to recognize that sometimes your users will create value that you don’t capture. Or even that someone else captures. But in the long run, it still flows back to you, as it makes your service that much more valuable.
If you’re charging for something that was once free, you’re taking away value from your community. You’re changing the nature of the bargain, and ripping away the trust that your community put in you. Instead, always look for something new that is worth paying for above and beyond what you already offered.
There are ways to monetize that don’t need to overwhelm, that don’t need to suck up every bit of data, that don’t need to rely on taking away features users relied on. Focus on adding more scarce value, and figuring out ways to charge for those new things which can’t be easily replicated.
You start learning acronyms like “ARPU” (average revenue per user) and such. And then you’re being measured on how much you’re increasing those metrics, which means you need to squeeze more out of each individual user, and you’re now deep within the enshittification stage, in which you’re trying to squeeze your users for more money each quarter (because now everything is judged in how well you did in the last 3 months to improve that number).