Why marketplaces work, and why society needs new business models that incorporate blockchain
In the past decade when technology was increasingly evolving, businesses large and small began using digital backends to build, scale and increase their revenue models. The problem with it today is, marketplaces have become saturated and many businesses look to sell the same products and services that many other competitors out there already sell.
Big tech and startups
Big tech companies are in a tough position by two fold. For example, Facebook by design has a problem with organizing data, not by the way the framework or platform is designed, but by the way the user consumes it, in both directions.
You could have all the high tech algorithms and compute power there is, but if you can’t educate your audience and allow them to use your system and use it well, (to improve well being), then you defeat the purpose of the goals your ecosystem is designed and set out for.
Another example is take for example twitter. Twitter’s design is much set in stone, which puts them at a disadvantage and gives startups a leg up. Make a change to the design and their audience is going to ask, “hey, what the f*ck is going on here, change it back.”
This gives other companies an advantage to do things better or do it the correct way. On the flip side, businesses like twitter and other big tech companies have large amounts of resources, so if they want to gobble up small companies, or invest, they can do that too.
This really adds an interesting perspective on creating new business models and the design of new jobs and job markets.
It’s a Creators market, with a caveat
You’ve probably seen over and over again the classic sales pitch either in front of a YouTube video or in your Instagram feed,
“I grew my business to X amount of sales or have this experience, signup for the video, and let me show you all the details and steps you need to take to replicate the same thing I did.”
This is fine, however, on the surface, (in addition to the enormous one time payment the marketer up sells you on to even hear what their methodology or strategy is), you’ll eventually realize that you need to spend at least 50X times more that amount to get the same or similar traction that they advertised to claim, that your business could “potentially” grow in too. And, if you’re not in marketing or advertising in the first place, it’s potentially a waste of your money and time, because all you simple want is to increase your sales for your product, not be trained in a whole new field.
While it is easy to advertise your product or service to millions of potential customers out there, it’s a long game, and people have become more frugal and cautious on how and where they spend their hard earned dollar. That long game as a marketer, can come with deep pocket, ad dollar spending.
People are tired of Ads selling them on “how to sell ads” funnels
The reason FaceBook and Google are so good at what they do from a marketing and advertising standpoint is the “ease of use,” or simplicity of they’re Ad platform for end users. It’s simple to add a few keywords in Google Adwords, post a video on YouTube Ads, setup an ad group in Facebook’s Business Manager and drive all that traffic to your particular site or niche product or service. With this said, there is a very small window of need to pay thousands of dollars for something you could easily learn in a weekend. That is unless you need to outsource your marketing and ad spending, or you business is solely based on providing Marketing for other businesses. In the case of the later, your product better spin gold, because advertising and product alignment is costly.
Crypto currencies need business models
The whole point of blockchain is bouncing around a ledger and providing quality control, integrity, and trust amongst many people overseeing the transactions, (done in algorithmic and computational form in the background), from what I gather from the theory. Bitcoin is based on the work you performed or mining, (the amount of computations by the computer). Why not use blockchain to represent the work a person puts into a project? A medium like a piece of artwork that you spend a month painting, an article that you write on Medium, or a piece of furniture that a person carved by hand?
Sure, the mom and pop stores down the street, selling jelly donuts and apple pies from the local bakery could stand to use the integration of digital currency, providing the integration does not hinder upon business operations or that the implementation does not drive up an increased cost on resources.
I think we need to wrap our thoughts around the skills and the value that we can provide each other through collaboration, instead of the finished physical products from the outcome of those processes.