Monetization – Make money helping people live up to their full potential
Francis Pedraza – Monetization – How to make money helping people live up to their full potential.
Monetization…actually, not hard for us to understand what we wanted to do. Our monetization strategy and thinking has matured but it’s not different than when we started.
When investors think about the self improvement space that we’re in, they think of it almost like a nonprofit. It’s like, oh my god, stay away; nobody makes any money helping people live up to their full potential! And we have to shake them and say, you are so wrong! We’re going to make so much money, and create value for users and customers, people that are going to be paying us in really amazing ways and, you know, we’re building a business model that hasn’t existed before. Let me tell you about it. Here’s what it is. And then I go into this whole spiel.
Here’s the spiel.
So, I’ll give you the long version. I’m going to start out by talking about data and dark data. So I think a good investment thesis is to think about what types of data are still dark. So, what I mean by that is, think about location data for Foursquare. Nobody knew where all these individuals were, and then they started checking in, and then you have this digital map that’s constantly being updated.
The people are everywhere! This person’s at this bar, this person goes to that bar with a relative frequency, etc. So, Foursquare surfaced dark data and started creating interactions around that data, around location. And that data is valuable. Who is it valuable to? It’s valuable to restaurants. It’s valuable to people. So that was their business. And it was a big business.
FaceBook– data is around the social graph. It didn’t exist before! Think about it—do you ever go back to the world before this stuff, rewind 10 years?