Hacker News new | ask | show | jobs
by kokanee 1299 days ago
User and business priorities are aligned during the growth phase, when user acquisition is the most important thing for the business. Once there is a self-sustaining level of user activity and new signups, revenue per engagement becomes an increasingly important metric. At that point the user's priorities and those of the business are no longer aligned, and the company starts asking more of its users.

A third phase occurs when phase two is successful enough that competitors lose traction. If you can achieve a monopolistic position in your market, then you can stop asking for attention and money, and start demanding it. Pay up or else you don't get to stream music. Sit through more and longer ads with increasingly insipid UX and privacy issues, or else you don't get to stream videos.

My view is that the Internet is in a consolidation phase where a smaller number of companies are getting a larger share of traffic, resulting in monopolistic dynamics.

3 comments

I felt like this was a really solid explanation of some dynamics at play I've been seeing a lot of. Thanks for putting such succinct thoughts to it.
Absolutely accurate, but I think to your point this is the same relationship between companies and employees.

As your product becomes more monopolistic, demand more from users, and you also become the company really smart people want to work at. Thus furthers your innovation which leads to more monopolistic products.

Interesting take. It feels like this can explain quite a bit about growing vs large company culture as well.