Examples of such products are Airbnb, Uber, Craigslist, and almost every dating app. The good news is that chicken and egg problem is solvable, that's The key is to really tend to your users and give them the best service. Six strategies for overcoming “chicken and egg” problems In the last 90s, most people assumed that dating websites was a “winner take all. It is a case of the classic chicken-and-egg problem where one cannot happen without the other. Users on one Dating websites are another classic example.
Six strategies for overcoming “chicken and egg” problems – cdixon blog
With the iPhone's runaway early success, Google was worried that mobile would become Apple's walled garden. Luckily, it wasn't alone. In essence, Google used a cooperative strategy. Rather than trying to build a network all on its own, Google tapped into the existing sales channels of the companies in the OHA to spread Android to consumers.
With Android enjoying more than 80 percent worldwide market share for mobile OS's and having more than 1. Act as a Producer Why bother getting two users groups at the same time when you can only focus on one? That's the idea at the heart of this strategy, where the platform acts as the producer to attract an initial group of consumers.
It then uses its existing consumer base to attract its producers. In essence, this strategy means you start out as a traditional linear business and then open up your ecosystem as you start to scale.
The iPhone is a classic example. When it first came out, Apple didn't allow third-party apps.
Once Apple had attracted a large group of consumers, it opened the App Store to enormous success. Another example is Amazon, which started out fulfilling all customer orders on its own. However, as Amazon grew, the company opened up the Amazon Marketplace platform.
Third parties on the marketplace sold over 2 billion items on Amazon last year, a new record.
Problem Solved: The Egg Came First | Smart News | Smithsonian
They now make up 40 percent of the site's annual sales. Use an Evolution Strategy Rather than trying to create a network from scratch, why not use one that's already there? An Evolution Strategy taps into an existing large network in order to attract a subset of its users. In order to attract these users away from the existing network, your platform needs to provide incremental value compared to the existing solution.
In essence, you've recognized that you're creating the next evolution of an existing network, and you're appealing to a portion of its existing network to help seed yours. Airbnb used this strategy to help grow its ecosystem early on.
The company tapped into Craigslist's large network by offering an improved experience for finding short-term rentals. It then used features like its infamous and now defunct "Publish on Craigslist" button to make it easy for its hosts to publish their Airbnb listings on Craigslist. But anyone responding to the listings would still reach the host through Airbnb.
Airbnb apparently also simply spammed Craigslist posters to get more hosts. Don't think you can get away with repeating this same Craigslist trick now, though. Unlike with a Cooperative Strategy, the existing network you're siphoning users from isn't likely to take kindly to your activities.
Create a Single- or Double-Sided Marquee Strategy High-value users will help you attract other users who want to interact with them.
Their participation on your platform brings extra value to your ecosystem, so many platforms will make specific efforts to subsidize the participation of these high-value users.
When Uber launched in Seattle, it subsidized town car participation by paying drivers even when they weren't transporting customers. This subsidy brought high-value producers into the ecosystem, which in turn attracted paying customers.
Dating websites are another classic example. Their populations tend to skew heavily male, so they often let women join for free. Other dating platforms, like Coffee Meets Bagel, go even further, deliberately designing the experience to appeal to women with the knowledge that if women join, men will too. Facebook also used this strategy to great effect by gating access to its network and opening up to Ivy League schools first. It then used the prestige of the Ivy League to help market to other schools.
Other college students wanted to join the social network that all the Ivy League kids were talking about. The goal here is to find a user group that can fill both your consumer and your producer roles.
That way, you no longer need to worry about attracting and balancing two separate user groups early on.Dating sites (part 1)
This was the recipe for success for handmade goods platform Etsy. Etsy's early research indicated that the people most likely to buy handmade goods were the people that also sold them. So the company decided to focus on this user group to fill out both sides of its marketplace before expanding to other audiences.
Be very careful about what you post on these places. Make sure you know what you are talking about, and that you actually contribute to the conversation. Only post a link to your own material after providing some value.
This is the essence of contests and raffles. Here you can find more details and tips about contests. Keep your promises and act honestly. Actually do award one of the users who participates, and use that opportunity to promote your app even one more time by announcing their name and posting their pictures.
Here are some practical tips to complement that: Post several times of the day on your Instagram page. Smart use of hashtags: For example, love is an abyss. Millions of people post there everyday, and your post will be drowned in seconds.
However loveinsanfrancisco is more limited. By posting into these tags on a regular basis, you can own it, and make it yours. Leave useful comments for other users. Nobody pays attention to these kind of comments anymore.
Problem Solved: The Egg Came First
Instead, find something interesting about that picture. The idea is to show that you spent time and actually cared about their content. Cross post from your Instagram to your Facebook page.
The users you would get are very valuable: Facebook ads are not cheep, and they may not be sustainable, nevertheless, you can get your first 50— quality users for a low price. Facebook ads have become a science now or so they are claimed and many people claim they can teach you how to do it. It might be useful to take a course or two in learning how to optimize them, but I would not spend too much money on these courses.
You can start with small budget and experiment on your own. See other ads that appear on your Facebook which seem to be successful i. Get the idea from them and apply it to your own ad.
Do they go to entrepreneurship conferences? Are they young and athletic? Then go to a gym, and ask for a table to promote your app there. Do your potential users go out in bars and clubs? Go there and talk to them. Give them promotional materials and ask them to follow you on Facebook or Instagram. The idea is to go to those places and provide a valuable experience for people whom you want to get to know you. We recently went to several dance festivals to promote our app PlusOne Social.
We were able to sign up many people boost our Facebook likes. Wear a T-shirt with a logo of your app. Go to coffee shops, malls, and bars. Start a conversation with people. Give them gift cards, promotional materials, buy them coffee or drinks, and have them install your app and give you feedback. I work in coffee shops on my laptop all the time.