Traditional business wisdom says that revenue is king, above all else. However, the brief history of the app industry seems to contradict that notion. Many of the business models for successful, profitable apps share one feature: They are brilliant at building ecosystems. Therefore, the lesson for app developers is perhaps counterintuitive. To make more money, don’t focus on revenue first. Instead, focus on growing ecosystems.
Getty Images Comedian Louis C.K. pioneered a new business model when he self-released a standup special on his website for $5. What do we mean by ecosystems? Human networks are like biological systems. Their ultimate value comes from the interaction of all the elements, not just the sum of the parts. That’s why places like Silicon Valley are what we call “rainforests.” What matters are the bonds that connect, and the barriers that inhibit.
To build ecosystems in the app world, developers should focus on how networks are built, rather than how revenue is made. What are the barriers that inhibit the building of relationships with users? How do we lower the transaction costs? These questions are critical because neither customers nor developers know how much something is really worth in the beginning.
To read the full, original article click on this link: Show Users Value Before They Show You the Money - The Accelerators - WSJ
