b&b116 How to use platform businesses to grow your business
Platform businesses are all about bridging the gap between consumer and producer. They’re the middlemen (or middlewomen). Uber/Lyft, Airbnb, Etsy, Ebay, even Spreaker where we upload our show, are all platform businesses. What does it take to create a good platform business? What can you expect a platform business to provide for you, in terms of marketing, and what should you expect to still do yourself? Did you know there’s something called a pipe business (not a pipe dream), and what’s the difference? Listen for all the answers and more.
Pam: The platform business model, and it’s on the rise today, is giving the average person opportunity to create side income, side hustle, to be able to connect with people that are looking for their services.
Pam: a platform business model is based on someone being a middleman. So in the sense of Uber and Airbnb being a digital middleman, and users being the one actually creating the value and consuming the value.
Pam: The iPhone is a platform business model. It’s a smartphone and you can make phone calls on it and check your email, but really developers can now connect with consumers through the app store.
Dyalekt: The point of having a platform business is that you want to be able to have a business that you can run, but you don’t wanna do a lot of the creative stuff…you don’t wanna do a lot of the content.
Pam: You don’t wanna actually make the product, you don’t wanna provide the service, you wanna provide a platform–that’s why it’s called platform business–for other people to provide the service.
Pam: Platforms…connect you to an audience that you wouldn’t have access to otherwise.
Pam: The platform has no value without the people on it, and you have to have people on both sides for it to really work.
Pam: You have to make sure producers and consumers both can easily use your platform, so for instance making videos easy to upload on YouTube means more people will use YouTube, whether or not you understand technology.
Dyalekt: It’s just like any other type of marker. The value is in the relationship that the marketer has to whoever they’re marketing to. When you get a publicist…it doesn’t matter how big their email list is. It matters whether or not they actually know their people and can convince them to listen.
Pam: The internet itself is a platform.
Pam: As a platform contributor, as someone who’s producing, you have the opportunity to just produce, and if your stuff is good and you’re on the right platform, and the platform is doing what it’s supposed to do, then people are just going to be able to find your stuff.
Pam: You don’t have to pay to get on Airbnb, you only pay when that sale is made…Don’t pay to play.
Dyalekt: For creatives as producers…we keep getting the same thing that people say to other businesses that makes sense in other businesses but doesn’t for us: “You’re gonna get out of it what you put into it.” That’s usually not true.
Pam: Know what you want out of the platform.
Dyalekt: If it feels like they are putting themselves in it too. If they are putting money, if they are putting resources, even if they’re putting their reputation [then believe it].
Dyalekt: They handle a lot of the business stuff while you can do a lot of the what we call talent stuff.
Pam: It’s time to start a platform when you feel like there’s a problem that you’re solving with that platform.
Dyalekt: Airbnb ain’t all that safe, but it feels safe.