Optimal platform pricing strategy
“There’s nothing more invigorating than being deeply involved with a small company and a young team of founders out to do something incredibly special. And everybody’s betting against us. It’s another mission impossible.”
How Instagram turned the UGC model upside down
I am deeply fascinated by Instagram and it has become my favorite social network app on iOS.
This hasn’t always been the case. I was an avid Instagram user back in 2010/2011 but the main use case was always to take better and prettier photos rather than the social sharing aspects. I then abandoned the app for new alternatives e.g. Popset and Path. But then something changed a couple of months ago. I re-launched Instagram after it had been a dormant app for almost half a year. The experience was completely different and so much better. Not only had the team improved the UI/UX but the app had tons of traction within my friendship circle. It was like entering a completely new community but with people I knew. People was sharing pictures (persons who are not active on Facebook or Twitter) and actively commenting and engaging.
The traditional UGC model rule of thumb is: 90% of people using a service is only consuming content while 10% of the users are actively producing content, sharing, liking etc. Instagram has turned this notion upside down. The majority of my Instagram friends are actively commenting and creating content in ways they are not behaving on other social platforms. This the true value of the Instagram platform.
Facebook did a great job acquiring the company last year and I am certain it will pay off in spades.
“Live in the future, then build what’s missing.”
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