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Seven Rules For Internet CEOs To Avoid Enshittification
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).
·techdirt.com·
Seven Rules For Internet CEOs To Avoid Enshittification
Reddit doubles down
Reddit doubles down
Huffman is right that, in the end, the whole situation reflects a product problem: the native Reddit apps, both on desktop and on mobile, are ugly and difficult to use. (In particular, I find the nested comments under each post bizarrely difficult to expand or collapse; the tap targets for your fingers are microscopic.) Reddit didn’t really navigate the transition to mobile devices so much as it endured it; it’s little wonder that millions of the service’s power users have sought refuge in third-party apps with more modern designs.
One of the most upsetting things about the API changes, from developers’ perspective, is that many of their users bought annual subscriptions, and Reddit’s new pricing takes effect at the end of this month. That leaves them little time to make things right with their customers.
·platformer.news·
Reddit doubles down
Apollo’s Christian Selig explains his fight with Reddit — and why users revolted
Apollo’s Christian Selig explains his fight with Reddit — and why users revolted
At the end of January — I want to say January 26th — I had another call with Reddit prior to all this where they were saying, “We have no plans to change the API, at least in 2023, maybe for years to come after that. And if we do, it’ll be improvements.” So then two months, three months later, for them to say, “Look, actually, scratch that, we’re planning to completely charge for the API, and it’s gonna be very expensive,” kind of made me think… what happened in those three months? This clearly wasn’t something that was cooking for a long time. And I don’t think they understood how much this would affect people and the response that they would get.
I think as time went on, things like only giving us 30 days to make these monstrous changes, I think it started to muddy the waters. It’s like, well, if you don’t want us to die, why are you giving us such aggressive timelines? And why can’t you bump things out? Or listen to us? Why are you acting in this way?
I think to a certain extent, after some of the blowback from initial posts from developers being like, “This is gonna cost us a lot of money,” they almost went on the defensive internally and said, “These developers are entitled, and they just want a free lunch or something.” And I feel like it got very personal when it didn’t really need to. It was just like, this is gonna kill my business — can we have a path forward?
·theverge.com·
Apollo’s Christian Selig explains his fight with Reddit — and why users revolted