This is actually something that I’ve written about before and I’m still on board with what I said, more or less. My thoughts are now just a little more refined, especially since I’ve been having conversations / reading about this idea in different contexts pretty consistently the past little while.
I have said, and will continue to say, that start-ups that aim to rely on the “find a user-base and then advertise to them” revenue model have a very steep uphill battle ahead of them. I’m not saying that it doesn’t work for some companies, but being successful at it is definitely the exception, and not the norm.
By virtue of that, the business idea development process of “Here’s a cool app, we’ll get a lot of people using it then sell advertising,” should be dying much quicker than it is. It’s likely better to rethink your idea or come up with something better than chase that unicorn. To reiterate, I’m not saying that there isn’t success out there, but to paraphrase from He’s Just Not That Into You (great chick flick, def in my top 5) it’s a crime when people cling on to the hope of being like the exception and not the rule.
To put it a little less 17-year-old-girl, the premise of Blue Ocean Strategy is basically that instead of trying to enter the shark-infested “red oceans” where there is huge competition, go where there is no competition. A “blue ocean” if you will. Side note: I know that’s a huge simplification of what is actually going on in that book, but this isn’t an essay about why Blue Ocean Strategy is awesome. I would suggest picking up a copy.
Where I truly think that the opportunity lays with all the online connection tools that we have is the intersection between where social technology influences or even facilitates our future decision and actions. No longer will it be able documenting what we have done online, but meaningful interaction will be taken based on information that we didn’t have before.
It’s important not to confuse this with the internet as an advertising medium. I know that technically the marketing that we see on an every day basis has the opportunity to influence us, but that’s not what I’m referring to. I’m talking about meaningful, online interaction resulting in real-world outcomes that would not have happened otherwise.
When thinking of an example of what I mean, I am honestly hard-pressed to think of a better one than online dating.
Before the internet, dating was fairly limited to your immediate network and lucky timing. Either you met someone through someone else or you happened to be at the right place at the right time to meet someone.
With online dating those barriers are broken. You don’t need to know anyone in order to participate and since profiles are 24/7, you are literally actively dating in your sleep. And every other time of the day for that matter.
Not only that, but the level of online dating is growing in sophistication. If you can believe the ads you see, they have systems running that help match you to more comparable people. That sounds way more efficient than starting the relationship with, “You like this bar? I also like this bar!” or based on what shared interests your aunt thinks you have.
The genius of online dating is that it didn’t just take something existing in the offline world and move it to the internet. Rather, it uses the technology to expand and enhance the experience. That’s what companies should be aiming for when developing their products.
I don’t know what the specific applications are, but this is something that is always top of mind for me. I just hope that I can come up with a great idea before the next guy!