ABSTRACT
Part III tackles the value capture. Value has been proposed and created; now it is time to capture it. That is, once the platform is launched, ways must be found to monetize the services offered to the users. Chapter 5 analyzes two main monetization strategies. The first strategy is to let users pay for the value they get on the platform; yet, pricing is tricky because the value for each user is conditional on the participation of other users. To deal with this complexity, the concept of leverage-based pricing is developed and an organizing tool – the Platform Pricing Matrix – is proposed. The second strategy consists of onboarding advertisers on the platform and making them pay for the attention (and, potentially, the personal data) of the primary users of the platform.
