Facebook Marketplace Quotes

Facebook started out as a social network, but now it’s so much more. A marketplace. A news and media platform. Control communication and you control the people communicating.

Sheryl seems baffled by this and fixates on why we haven’t designed the initiative in a way that would allow Facebook to play a bigger role in the collection of data, marketplace of organs, and more. I start to explain the legal, cultural, and religious complexity around organ donation globally, and the sensitivity of the information that organ registries hold. She looks at me as if I am a complete idiot and have missed the obvious, which I suppose I have. I wasn’t looking at this as a business opportunity, a way to start collecting health data from users. Sensing danger, I pivot to the risk of organ trafficking. I explain that countries have put a lot of thought into safeguarding organ donation information and guarding against cross-border transportation of organs. She turns to me, indignant. The edge in her voice is unmistakable. “Do you mean to tell me that if my four-year-old was dying and the only thing that would save her was a new kidney, that I couldn’t fly to Mexico and get one and put it in my handbag?

The criteria that I found most valuable when making my decisions were the following: What is the size of the investor community invested in other offerings on the platform to-date? Does the platform accept investments via credit card? For example, about 40% of my crowdfunding investors invested with a credit card. Does the platform allow for campaign extensions (if you fall short of your goal within your campaign period, can you extend the campaign until you reach your goal)? I’ve extended my campaigns multiple times. Does the platform allow for multiple disbursements? I prefer to disburse money from my campaign once a month. However, many platforms don’t allow you to disburse the funds until after the campaign is over What are the fees? Platforms can charge between 5-20% of your raise as fees, with some platforms having complicated fee structures that involve taking some of your Securities as part of the offering. Some platforms require you to pay them cash upfront before launching an offering. Does the platform allow you to set your own terms? For example, some platforms don’t allow you to sell convertible notes. Some others don’t allow you to sell non-voting common stock. Some platforms insist that they set the valuation for your startup in order to launch—the logic being that they know their investors, and they want to provide them with a “good deal.” For many reasons, you want to sell the Security that’s right for your startup. Does the platform allow you to have design freedom on the campaign page? You want to make sure that your brand is well represented. The aesthetics and optimization of the page are highly correlated with conversion (how many people invest after visiting your page). Does the platform support analytics? You need advanced analytics to market your offering. Some platforms, for example, allow you to enter a Facebook Pixel and Google Analytics code into the campaign page, while others do not. Does the platform have a good reputation? You will be driving a lot of potential investors and media folks to this platform, and you want to be sure that your platform of choice hasn’t been involved in anything shady in the past. Does the platform allow you to update your investors and prospective investors with campaign notifications? Some platforms have a built-in functionality where you can post updates right on the campaign, download email, and mailing contact lists of your investors (allowing you to contact them by email and allowing you to build Facebook “lookalike audiences”). Whereas, other platforms don’t even share the email addresses of the folks who have already invested in your startup. Does the platform support or plan to support secondary trading for the Securities that it sells on its platform? Will your investors be able to sell the Securities that they buy from you? The ability to sell Securities in a marketplace brings a lot of liquidity and increases its value significantly. In order to allow for secondary trading, the platform needs to obtain an Alternative Trading System (ATS) approval from FINRA.

Anyone anywhere can order one online, brand new from Amazon or any major hardware store—Home Depot, Lowes, etc. Or used ones from an even longer list of sites—Craigslist, Facebook Marketplace, eBay. There were also forums like Quora and Pinterest where people sell things to one another directly.

Social networks like Facebook seem impelled by a similar aspiration. Through the statistical "discovery" of potential friends, the provision of "Like" buttons and other clickable tokens of affection, and the automated management of many of the time-consuming aspects of personal relations, they seek to streamline the messy process of affiliation. Facebook's founder, Mark Zuckerberg, celebrates all of this as "frictionless sharing"--the removal of conscious effort from socializing. But there's something repugnant about applying the bureaucratic ideals of speed, productivity, and standardization to our relations with others. The most meaningful bonds aren't forged through transactions in a marketplace or other routinized exchanges of data. People aren't notes on a network grid. The bonds require trust and courtesy and sacrifice, all of which, at least to a technocrat's mind, are sources of inefficiency and inconvenience. Removing the friction from social attachments doesn't strengthen them; it weakens them. It makes them more like the attachments between consumers and products--easily formed and just as easily broken. Like meddlesome parents who never let their kids do anything on their own, Google, Facebook, and other makers of personal software end up demeaning and diminishing qualities of character that, at least in the past, have been seen as essential to a full and vigorous life: ingenuity, curiosity, independence, perseverance, daring. It may be that in the future we'll only experience such virtues vicariously, though the exploits of action figures like John Marston in the fantasy worlds we enter through screens.

One of the masters of trendspotting is Rohit Bhargava, author of Non-Obvious. He curates the biggest trends each year and packages them up into a book. Then he explains how people and businesses can take advantage of these trends to improve their position in the marketplace. Thinking deliberately about trends is a secret sauce for most successful hustlers, because it creates an unfair advantage. When Evan Spiegel built Snapchat, he was capitalizing on a trend. He saw people using Facebook and their phones to share photos, but noticed they felt inhibited by the fact that the images were either permanent, or public. By reversing those two elements―making image-sharing ephemeral and private, he solved a big problem. Snapchat exploded across the younger demographics and quickly became a multibillion-dollar business. Another example is Kik, a popular messaging app. When Kik launched, plenty of messaging services already existed. In fact, the ultimate messaging services seemed to be the ones already  built into everyone's phones. Apple had a messaging app, and so did Android. So, why reinvent the wheel? Ted Livingston, the founder of Kik, had other ideas. Why? Because he had identified a trend. Consumers were clearly upset with the built-in messaging services. First, the telecom companies were charging per message sent and received, which was a horrible experience. It felt like classic, capitalistic highway robbery. Second―and this was a big problem for teens: You could only exchange messages by giving out your phone number. Livingston noticed that teens wanted to chat with other people they met online, but had no safe way of doing that without giving out their number. So he created Kik, which allows people to create a username instead. Kiksters can then share their username to start chatting, while keeping their digits private. But even better, messaging is unlimited, and completely free. By examining the trends happening in the messaging market, Livingston was able to build a product that rivaled the multi-billion dollar incumbents. Now his company is valued at over a billion.   

Your Competition Has Network Effects, Too To figure out a response, it’s important to acknowledge a common myth about defensibility and moats: that somehow, network effects will magically help you fend off competition. This is a myth repeated again and again in startup pitch presentations to investors and entrepreneurs. It’s a lie that entrepreneurs tell to themselves. It isn’t true—simply having network effects is not enough, because if your product has them, it’s likely that your competitors have them, too. Whether you are a marketplace, social network, workplace collaboration tool, or app store, you are in a “networked category.” It’s intrinsic in these categories that every player is a multi-sided network that connects people, and is governed under the dynamics of Cold Start Theory. Effective competitive strategy is about who scales and leverages their network effects in the best way possible. No wonder we often see smaller players upend larger ones, in an apparent violation of Metcalfe’s Law. If every product in a category can rely on their network, then it’s not about who’s initially the largest. Instead, the question is, who is doing the best job amplifying and scaling their Acquisition, Engagement, and Economic effects. It’s what we see repeatedly over time: MySpace was the biggest social network in the mid-2000s and lost to Facebook, then a smaller, newer entrant with a focus on college networks with stronger product execution. HipChat was ahead in workplace communication, but was upended by Slack. Grubhub created a successful, profitable multibillion-dollar food-ordering company, but has rapidly lost ground to Uber Eats and DoorDash.

A key element of leveraging network effects is the aggressive pursuit of network growth and adoption. Because the impact of network effects increases in a superlinear fashion, at lower levels of scale, network effects actually exert downward pressure on user adoption. Once all your friends are on Facebook, you have to be on Facebook too. But conversely, why would you join Facebook if none of your friends had joined yet? The same is true for the first user of marketplaces like eBay and Airbnb. With network effects businesses, you can’t start small and hope to grow slowly; until your product is widely adopted in a particular market, it offers little value to potential users.

In 2016, Facebook’s Marketplace debut was very controversial with people trying to sell weird stuff. For instance, in London, UK, someone tried to “sell” his pregnant girlfriend for $400.

they centrally orchestrate large amounts of new economic activity. Social networks existed informally before Facebook came along. But Facebook centralized all of these networks into one platform in order to facilitate more connections and interactions between people. In essence, Facebook built a marketplace for social interaction.

Mr. Mark Zuckerberg, how will you justify it if tomorrow your daughter asks you how and why you turned a social media platform into a red-light area and an open porn marketplace?

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