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The best product in a category is one with real community & social interaction
I call them social+ products
More
https://a16z.com/2020/12/07/social-strikes-back-social-plus/
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The best product in a category is one with real community & social interaction
I call them social+ products
More
https://a16z.com/2020/12/07/social-strikes-back-social-plus/
2/ Any product that is intrinsically social & community-driven has an asymmetric advantage over every competitor.
Call it the Law of Social+ Preeminence.
You can see this play out from gaming to shopping to music to fitness to money to media.
Call it the Law of Social+ Preeminence.
You can see this play out from gaming to shopping to music to fitness to money to media.
3/ These products have better growth loops, better engagement, better retention, better defensibility, better ... everything.
And because they're network-driven, that advantage accumulates over time.
And because they're network-driven, that advantage accumulates over time.
4/ But not every category has had its social moment -- yet.
Just as every industry goes through its once-in-a-lifetime transition from analog to digital, every category will have its once in a lifetime transition from single to multi-player.
From unsocial to social.
Just as every industry goes through its once-in-a-lifetime transition from analog to digital, every category will have its once in a lifetime transition from single to multi-player.
From unsocial to social.
5/ So why don't we have more social+ products? It’s hard. Really hard.
Threading the needle between social & transactional in the product, marketing, and business model can be delicate.
And nothing's worse than a clumsy social product.
Threading the needle between social & transactional in the product, marketing, and business model can be delicate.
And nothing's worse than a clumsy social product.
6/ And this is doubly hard for categories that aren’t super social in the analog form.
But that’s why the reward for those who nail social+ is so high.
Nothing ventured, nothing gained right?
But that’s why the reward for those who nail social+ is so high.
Nothing ventured, nothing gained right?
7/ I’m also not saying that non-social products can’t be awesome or valuable. They can be amazing.
But I *am* saying they’re more precarious than their social equivalents.
The social version has an unfair advantage.
But I *am* saying they’re more precarious than their social equivalents.
The social version has an unfair advantage.
8/ Category winners that have gone social are evidence of a Law of Social+ Preeminence. (yes, the term I made up 6 tweets ago 
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And there are so many categories that are still open!!
Some are naturally more social than others, but *every* category will eventually go social.
)And there are so many categories that are still open!!
Some are naturally more social than others, but *every* category will eventually go social.
9/ So what do I mean?
Let’s run through some examples in
- Music 
- Gaming 
- Spoken Audio
- Commerce
- Fitness and sports
- Food 
- Real estate
- Education
Let’s run through some examples in
- Music
- Gaming
- Spoken Audio
- Commerce
- Fitness and sports
- Food
- Real estate
- Education
10/ Music: Spotify v Tiktok
Spotify is great, but it's mostly a single player product. Music, though, is an inherently social experience.
Tiktok built a social + music product.
After 14 years, Spotify's market cap is ~$50B. Who knows what Tiktok is worth after 5?
Spotify is great, but it's mostly a single player product. Music, though, is an inherently social experience.
Tiktok built a social + music product.
After 14 years, Spotify's market cap is ~$50B. Who knows what Tiktok is worth after 5?
11/ Gaming: Assassin’s Creed v Fortnite
AC is awesome, but it lacks the social elements of a Fortnite or Minecraft.
The AC franchise is estimated to be worth ~$350M. Fortnite is estimated at $2B.
It’s why the best games are more like social networks than Hollywood hits.
AC is awesome, but it lacks the social elements of a Fortnite or Minecraft.
The AC franchise is estimated to be worth ~$350M. Fortnite is estimated at $2B.
It’s why the best games are more like social networks than Hollywood hits.
12/ Spoken Audio: Podcast apps v Clubhouse/Chalk
I love audio as a format and I love podcasts. But podcasts are single-player and passive (for now).
Clubhouse & others have taken the same form factor but layered in a social network & more UGC to truly unleash social + audio.
I love audio as a format and I love podcasts. But podcasts are single-player and passive (for now).
Clubhouse & others have taken the same form factor but layered in a social network & more UGC to truly unleash social + audio.
13/ Sidebar on audio: my colleague @andrewchen unpacks the promise of social-audio here. Def worth a read. https://a16z.com/2020/12/07/social-strikes-back-audio/
14/ But to me, the most interesting thing isn’t the categories that have gone social, it’s **how much opportunity is still out there.**
Activities where the analog version is inherently social, but where the digital version is still a lonely single-player experience.
Activities where the analog version is inherently social, but where the digital version is still a lonely single-player experience.
15/ Social + Commerce: Amazon v Pinduoduo
Commerce feels like the next category to tip social. I don’t expect PDD to overtake AMZN any time soon, but the fact that it went from $0 to $100B+ in <5 years shows the potential for social +commerce.
More to come here!
Commerce feels like the next category to tip social. I don’t expect PDD to overtake AMZN any time soon, but the fact that it went from $0 to $100B+ in <5 years shows the potential for social +commerce.
More to come here!
16/ Social + Fitness
Crossfit & SoulCycle can be more like cults than products. Fitness is inherently a social experience for many. But most of the products are single player.
Peloton’s leaderboard is fun, but it’s a toe in the water. So much more to build.
Crossfit & SoulCycle can be more like cults than products. Fitness is inherently a social experience for many. But most of the products are single player.
Peloton’s leaderboard is fun, but it’s a toe in the water. So much more to build.
17/ Social + Food
Eating is inherently social. No one remembers that sad solo desk meals. You remember shared meals with friends & family.
From virtual kitchens to delivery to plant-based food, we’ve seen lots of innovation in food. No one has fully cracked social + food yet.
Eating is inherently social. No one remembers that sad solo desk meals. You remember shared meals with friends & family.
From virtual kitchens to delivery to plant-based food, we’ve seen lots of innovation in food. No one has fully cracked social + food yet.
18/ Social + Real estate
Where & how we live is a social experience, whether it’s roommates or neighbors or a local community.
Zillow is a $25B company. Why no social equivalent?
Real estate is one of the biggest markets out there. Whoever builds social + RE is gonna be
Where & how we live is a social experience, whether it’s roommates or neighbors or a local community.
Zillow is a $25B company. Why no social equivalent?
Real estate is one of the biggest markets out there. Whoever builds social + RE is gonna be
19/ Social + Money
Social+money is a holy grail. I’ve talked about it before and spent years trying to crack it as a founder at @hifrank. Eventually someone will.
Venmo’s public feed and r/WallStreetBets are the tip of the iceberg. https://a16z.com/2020/12/07/social-strikes-back-social-meets-fintech/
Social+money is a holy grail. I’ve talked about it before and spent years trying to crack it as a founder at @hifrank. Eventually someone will.
Venmo’s public feed and r/WallStreetBets are the tip of the iceberg. https://a16z.com/2020/12/07/social-strikes-back-social-meets-fintech/
20/ Social + Education
As covid has shown us, remote education needs help.
For many people, their school is a core pillar of their social network, yet most of what we see in online education is passive & single-player
Who's going to nail the social layer in education?
As covid has shown us, remote education needs help.
For many people, their school is a core pillar of their social network, yet most of what we see in online education is passive & single-player
Who's going to nail the social layer in education?
21/ In 2020, people have been extra excited for better (digital) social experiences and more authentic communities.
I’m optimistic that we’re going to see more of these social + ____ companies built in 2021 and beyond.
I’m keeping my eyes open. Bright days ahead
I’m optimistic that we’re going to see more of these social + ____ companies built in 2021 and beyond.
I’m keeping my eyes open. Bright days ahead
22/ Full article on Community Takes All: The Power of Social+ here https://a16z.com/2020/12/07/social-strikes-back-social-plus/
23/ Also, this post is part of Social Strikes Back, our new series exploring the next generation of social networks and how they're shaping the future.
You can see everything at http://a16z.com/social-strikes-back
You can see everything at http://a16z.com/social-strikes-back
