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Trend: • @Shopify Shop
• @gumroad Discover
• @SubstackInc Reader
• @Patreon search
• @teachable Discover
Why are creator-first companies exploring marketplaces?
Storytime in
In 2009, Udemy created a course marketplace.
They built a successful business by attracting students to sell instructors courses—taking a fee of sales revenue in the process.
They built a successful business by attracting students to sell instructors courses—taking a fee of sales revenue in the process.
In 2013, @ankurnagpal became a Udemy instructor, selling mobile marketing courses.
He wanted to sell more products to his students, but because Udemy owned the students, he couldn't access any of them.
Frustrated, he started building a side project.
He wanted to sell more products to his students, but because Udemy owned the students, he couldn't access any of them.
Frustrated, he started building a side project.
This side project would give him access to his students and cut out the middle man.
Sure, he would need to find his own students, but he was willing to make that tradeoff for more revenue.
Sure, he would need to find his own students, but he was willing to make that tradeoff for more revenue.
That side project became Teachable, a platform that differentiated by building for instructors, not students.
7 years later, this small differentiator has helped more than 100k creators earn over $1B, and Teachable was acquired for a (reported) quarter of a billion dollars.
7 years later, this small differentiator has helped more than 100k creators earn over $1B, and Teachable was acquired for a (reported) quarter of a billion dollars.
But, creators want both to GROW and OWN their audience.
So why do companies help with either one or the other, but not both at the same time? Because they’re either platforms or aggregators.
So why do companies help with either one or the other, but not both at the same time? Because they’re either platforms or aggregators.
Platforms:
Facilitate a relationship between 3rd-party suppliers and end-users. Platforms are building for and monetize via businesses. The onus is on businesses to find their own audience.
Example: Shopify
Facilitate a relationship between 3rd-party suppliers and end-users. Platforms are building for and monetize via businesses. The onus is on businesses to find their own audience.
Example: Shopify
Aggregators:
Intermediate and control the relationship with end-users. Aggregators are building for and monetize via consumers. They provide the audience.
Example: Amazon
Intermediate and control the relationship with end-users. Aggregators are building for and monetize via consumers. They provide the audience.
Example: Amazon
Platforms are aggregators’ most effective competition.
Shopify doesn’t compete by taking Amazon head-on, but by differentiating their customer. Amazon serves consumers. Shopify serves businesses.
(Credit @benthompson)
Shopify doesn’t compete by taking Amazon head-on, but by differentiating their customer. Amazon serves consumers. Shopify serves businesses.
(Credit @benthompson)
In the Creator Economy space, examples include:
• @udemy (aggregator) vs @teachable (platform)
• @Medium (aggregator) vs @SubstackInc (platform)
• @udemy (aggregator) vs @teachable (platform)
• @Medium (aggregator) vs @SubstackInc (platform)
Medium found success by giving creators an easy way to publish writing online. But this came at the cost of audience ownership.
Substack differentiated by being creator-first, giving them complete control of their audience.
Substack differentiated by being creator-first, giving them complete control of their audience.
Bonus example: https://twitter.com/Jason/status/1346624518274441219
For creators, "renting" an audience from an aggregator is risky.
Algorithms and rules can change, and you can be deplatformed without notice. Creators know they need to OWN their audience. Their audience IS their business. But they still need to grow.
Can platforms help?
Algorithms and rules can change, and you can be deplatformed without notice. Creators know they need to OWN their audience. Their audience IS their business. But they still need to grow.
Can platforms help?
Helping customers grow sounds like a win-win, but it's not so simple.
Aggregation shifts platform incentives away from the creator. Suddenly you're building for a completely different customer—the end-user, and you need to give them the best experience.
Aggregation shifts platform incentives away from the creator. Suddenly you're building for a completely different customer—the end-user, and you need to give them the best experience.
This means pitting creators against each other.
How do you rank them fairly? How do you show end-users the best of what you have to offer (top creators), while also supporting smaller unproven creators who need distribtion help the most?
How do you rank them fairly? How do you show end-users the best of what you have to offer (top creators), while also supporting smaller unproven creators who need distribtion help the most?
Still, creator platforms are exploring ways to help customers with distribution.
Patreon search, Teachable Discover, Substack Reader, Shopify Shop, and Gumroad Discover are all early attempts at this.
Patreon search, Teachable Discover, Substack Reader, Shopify Shop, and Gumroad Discover are all early attempts at this.
Can companies make the leap from platform to hybrid?
Too early to tell, but it could be a winning differentiator.
Too early to tell, but it could be a winning differentiator.
If you enjoyed this thread and want to learn more about the Creator Economy space...
Follow me @ryangum and subscribe to my upcoming posts for more insights: https://ryangum.com
Follow me @ryangum and subscribe to my upcoming posts for more insights: https://ryangum.com
References and further reading:
• https://discover.teachable.com
• https://gumroad.com/discover
• https://www.patreon.com/search
• https://reader.substack.com
• https://www.shopify.com/blog/introducing-shop
• https://discover.teachable.com
• https://gumroad.com/discover
• https://www.patreon.com/search
• https://reader.substack.com
• https://www.shopify.com/blog/introducing-shop
Shopify and the Power of Platforms
https://stratechery.com/2019/shopify-and-the-power-of-platforms/ by @benthompson
https://stratechery.com/2019/shopify-and-the-power-of-platforms/ by @benthompson
What Medium Got Right and What It Got Wrong
https://serenekxc.medium.com/im-starting-a-substack-bead547c6b83 by @serenekxc
https://serenekxc.medium.com/im-starting-a-substack-bead547c6b83 by @serenekxc
Shopify and The Key Decision for Business-in-a-Box Platforms
https://nbt.substack.com/p/shopify-and-the-key-decision-for by @nbt
https://nbt.substack.com/p/shopify-and-the-key-decision-for by @nbt
Gumroad Discover https://twitter.com/shl/status/1160922093090816000
Teachable Discover https://twitter.com/ankurnagpal/status/1189614262186057729
Substack & Crossroads for a Revolution
https://thistooshallpass.blog/substack-crossroads-for-a-revolution/ by @rhyswallaceco
https://thistooshallpass.blog/substack-crossroads-for-a-revolution/ by @rhyswallaceco
