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420 sats \ 2 replies \ @k00b 3 Nov \ on: Building an open social graph - backed by email/calendar data tech
If the openness hinges on this model, it's doesn't seem strong enough for me to believe it yields a forever open social graph.
- I'm not sure people will pay enough to port their social graph out to sustain a business
- Even if (1) is wrong I can't be sure that once this service grows, you won't want to make quarterly earnings with a surprise API pricing change (angering users that are locked in happens all the time)
- if you can put a paywall for one type of person, you can put it up for anyone at your business's discretion
That said, I think this is a huge insight:
I do agree that the business model in itself is not sufficient to guarantee the graph remains open. This idea is work in progress and I am open to suggestions. My high-level thinking is this:
- The more the platform depends on the revenue from its users, the more it is incentivized to act in their interest
- The network effects can be established on the platform level, or integrations. I.e. the ecosystem of connected apps and platforms can, in itself, create a network effect
I'm trying to figure out how to structure the product and the business model in such a way that the most value for shareholders is created when the graph remains open.
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You basically need the person that's paying you to stop paying you when it stops being open. You need the value they receive to evaporate when you close the graph off. Once you have the graph, you hold the value and can extract any rent you choose to.
I think you need others to have the graph and ideally many of them. If you can incentivize competitors to also serve the graph, that'd prevent any one company from successfully extorting customers.
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