Online Marketplace Quotes

Capitalism has no land left to cultivate but the self. Everything is being cannibalized—not just goods and labor, but personality and relationships and attention. The next step is complete identification with the online marketplace, physical and spiritual inseparability from the internet: a nightmare that is already banging down the door.

The realms of dating, marriage, and sex are all marketplaces, and we are the products. Some may bristle at the idea of people as products on a marketplace, but this is an incredibly prevalent dynamic. Consider the labor marketplace, where people are also the product. Just as in the labor marketplace, one party makes an offer to another, and based on the terms of this offer, the other person can choose to accept it or walk. What makes the dating market so interesting is that the products we are marketing, selling, buying, and exchanging are essentially our identities and lives. As with all marketplaces, every item in stock has a value, and that value is determined by its desirability. However, the desirability of a product isn’t a fixed thing—the desirability of umbrellas increases in areas where it is currently raining while the desirability of a specific drug may increase to a specific individual if it can cure an illness their child has, even if its wider desirability on the market has not changed. In the world of dating, the two types of desirability we care about most are: - Aggregate Desirability: What the average demand within an open marketplace would be for a relationship with a particular person. - Individual Desirability: What the desirability of a relationship with an individual is from the perspective of a specific other individual. Imagine you are at a fish market and deciding whether or not to buy a specific fish: - Aggregate desirability = The fish’s market price that day - Individual desirability = What you are willing to pay for the fish Aggregate desirability is something our society enthusiastically emphasizes, with concepts like “leagues.” Whether these are revealed through crude statements like, “that guy's an 8,” or more politically correct comments such as, “I believe she may be out of your league,” there is a tacit acknowledgment by society that every individual has an aggregate value on the public dating market, and that value can be judged at a glance. When what we have to trade on the dating market is often ourselves, that means that on average, we are going to end up in relationships with people with an aggregate value roughly equal to our own (i.e., individuals “within our league”). Statistically speaking, leagues are a real phenomenon that affects dating patterns. Using data from dating websites, the University of Michigan found that when you sort online daters by desirability, they seem to know “their place.” People on online dating sites almost never send a message to someone less desirable than them, and on average they reach out to prospects only 25% more desirable than themselves. The great thing about these markets is how often the average desirability of a person to others is wildly different than their desirability to you. This gives you the opportunity to play arbitrage with traits that other people don’t like, but you either like or don’t mind. For example, while society may prefer women who are not overweight, a specific individual within the marketplace may prefer obese women, or even more interestingly may have no preference. If a guy doesn’t care whether his partner is slim or obese, then he should specifically target obese women, as obesity lowers desirability on the open marketplace, but not from his perspective, giving him access to women who are of higher value to him than those he could secure within an open market.

Many people in this room have an Etsy store where they create unique, unreplicable artifacts or useful items to be sold on a small scale, in a common marketplace where their friends meet and barter. I and many of my friends own more than one spinning wheel. We grow our food again. We make pickles and jams on private, individual scales, when many of our mothers forgot those skills if they ever knew them. We come to conventions, we create small communities of support and distributed skills--when one of us needs help, our village steps in. It’s only that our village is no longer physical, but connected by DSL instead of roads. But look at how we organize our tribes--bloggers preside over large estates, kings and queens whose spouses’ virtues are oft-lauded but whose faces are rarely seen. They have moderators to protect them, to be their knights, a nobility of active commenters and big name fans, a peasantry of regular readers, and vandals starting the occasional flame war just to watch the fields burn. Other villages are more commune-like, sharing out resources on forums or aggregate sites, providing wise women to be consulted, rabbis or priests to explain the world, makers and smiths to fashion magical objects. Groups of performers, acrobats and actors and singers of songs are traveling the roads once more, entertaining for a brief evening in a living room or a wheatfield, known by word of mouth and secret signal. Separate from official government, we create our own hierarchies, laws, and mores, as well as our own folklore and secret history. Even my own guilt about having failed as an academic is quite the crisis of filial piety--you see, my mother is a professor. I have not carried on the family trade. We dwell within a system so large and widespread, so disorganized and unconcerned for anyone but its most privileged and luxurious members, that our powerlessness, when we can summon up the courage to actually face it, is staggering. So we do not face it. We tell ourselves we are Achilles when we have much more in common with the cathedral-worker, laboring anonymously so that the next generation can see some incremental progress. We lack, of course, a Great Work to point to and say: my grandmother made that window; I worked upon the door. Though, I would submit that perhaps the Internet, as an object, as an aggregate entity, is the cathedral we build word by word and image by image, window by window and portal by portal, to stand taller for our children, if only by a little, than it does for us. For most of us are Lancelots, not Galahads. We may see the Grail of a good Classical life, but never touch it. That is for our sons, or their daughters, or further off. And if our villages are online, the real world becomes that dark wood on the edge of civilization, a place of danger and experience, of magic and blood, a place to make one’s name or find death by bear. And here, there be monsters.

There will be light in your eyes only if there are dreams in your heart.

The first method is to think across the traditional boundaries of your marketplace to alternatives, not just competitors.

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If you don’t like your customers, that’s your fault, not theirs. You attract your customers based on the content and offers that you put into the marketplace.” And then he said the line that I’ll never forget, “If you change your bait, you’ll change your customer.

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First, the Internet has driven the cost of discovery for products and services lower than ever. Unlike in the past, when companies needed to offer goods in retail stores or broadcast advertising in order to be visible to customers, today buyers can find whatever they’re looking for on Amazon or other online marketplaces like Alibaba, in app stores, or, when all else fails, by Googling. Because products and services that are already popular will almost always come up first in search results, companies with a competitive advantage can quickly grow to the point where the increasing returns of network effects produce a winner-take-most or winner-take-all market.

There are good reasons to believe that online advertising inventory is steadily decreasing in value over time. Two forces drive this erosion of value: structural shifts in what people pay attention to, and a massive global economy of fraud in the programmatic advertising marketplace. These trends are hidden by the murkiness of online advertising, as well as by a pattern of bad incentives that encourage ongoing efforts to pump up and hype the market.

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One of my mastermind members, Travis Killian, once told me about how he gets products to stand out in a busy, loud marketplace. His answer was simple: “We listen to people. We execute so many split tests, it’s insane. We’ll mock up the product and ask people, Which do you like better? This one or this other one from our competitor? We do that for all the top competitors in the market, all the ones we think have the best products in the niche.” Split testing requires nothing more than asking people which one of two things they like better. That’s it. Show someone two items, and ask for his or her preference. It’s one of those rare things that happens to be simple, easy, and effective. “I remember one time, when we were just starting out,” Travis told me, “we paid one of our friends to go to the mall in Austin, show pictures of our products versus our competitor’s products, and collect survey answers on which one they preferred.” If it sounds like a ton of time and money to pay someone to do inperson surveys and split testing, Travis says that’s not even essential. “When we started out, that’s what we did. Now, we use services online to run constant split tests of our products against our competitors’ products. The most important thing is to get the feedback on why survey respondents have a preference. Why do they like the other guy’s product over mine? That’s the data we really want to collect. We spend our time analyzing that data and applying it to the products—deciding first if the feedback is something we can, and want, to address, and then making changes from there.

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.

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Fiverr.com—a Web site that represents freelancers all over the world who will do small jobs for just $5. And the online freelance marketplace Elance.com connects graphic

Quiet marketing is not about playing small, being shy or being invisible in the marketplace.

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Just try this thought experiment: Imagine that it’s 1993. The Web is just appearing. And imagine that you—an unusually prescient type—were to explain to people what they could expect by, say, the summer of 2003. Universal access to practically all information. From all over the place—even in bars. And all for free! I can imagine the questions the skeptics would have asked: How will this be implemented? How will all of this information be digitized and made available? (Lots of examples along the line of “a thousand librarians with scanners would take fifty years to put even a part of the Library of Congress online, and who would pay for that?”) Lots of questions about how people would agree on standards for wireless data transmission—“It usually takes ten years just to develop a standard, much less put it into the market-place!”— and so on, and so on.

Reputation Reputation is a form of stored value users can literally take to the bank. On online marketplaces such as eBay, TaskRabbit, Yelp, and Airbnb, people with negative scores are treated very differently from those with good reputations.

When businessmen open up their computers today, they see Windows. Everything is Windows. In the future, what we hope you will see is a full-service window of Alibaba. Alibaba will become synonymous with trade.

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.   

Smart entrepreneurs have grabbed this opportunity with a vengeance. Now online lesson-plan marketplaces such as Gooru Learning, Teachers Pay Teachers, and Share My Lesson allow teachers who want to devote more of their time to other tasks the ability to purchase high-quality (and many lesser-quality) lesson plans, ready to go. With sensors, data, and A.I., we can begin, even today, testing for the learning efficacy of different lectures, styles, and more. And, because humans do a poor job of incorporating massive amounts of information to make iterative decisions, in the very near future, computers will start doing more and more of the lesson planning. They will write the basic lessons and learn what works and what doesn’t for specific students. Creative teachers will continue, though, to be incredibly valuable: they will learn how to steer and curate algorithmic and heuristically updated lesson creation in ways that computers could not necessarily imagine. All of this is, of course, a somewhat bittersweet development. Teaching is an idealistic profession. You probably remember a special teacher who shaped your life, encouraged your interests, and made school exciting. The movies and pop culture are filled with paeans to unselfish, underpaid teachers fighting the good fight and helping their charges. But it is becoming clearer that teaching, like many other white-collar jobs that have resisted robots, is something that robots can do—possibly, in structured curricula, better than humans can. The

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Located on 9th Avenue in New York City, B& H Photo is the largest non-chain photo and video equipment store in the United States and the second largest in the world —only Yodobashi Camera in downtown Tokyo is bigger. The owners, along with many of their employees, are Hasidic Jews who dress just as their eighteenth-century ancestors did in Eastern Europe. On any given day, 8,000 to 9,000 people pass through the front door. Yet 70 percent of their business is online, serviced by a 200,000-square-foot warehouse located nearby in Brooklyn. Even in a competitive marketplace, B& H won’t conduct business on the Sabbath or on about a half-dozen Jewish holidays during the year. They close their doors at 1 p.m. on Fridays and keep them closed all day Saturday, the biggest shopping day of the week. During Sabbath, customers can peruse the B& H website, but they can’t make an online order. Recently a customer asked the B& H director of communications how they could close not just the retail store but also the website on Black Friday, the day after Thanksgiving and the busiest shopping day of the year. The director simply replied, “We respond to a higher authority.” 17

Nearly half a million people chose health plans through HealthCare.gov during the first week of the new open-enrollment period in the online insurance marketplace, federal health officials announced Wednesday.

One factor in his decision was a sense of giving it a try. Ma has always felt that one does not measure success just by the results; instead, he feels that the experience of doing something is in itself a kind of success. “You go out and charge around…if it doesn’t work, you can always bow out. But if you just think over thousands of things at night and in the morning keep on walking the same old path, you never get anywhere. You don’t grow. You might as well try.” Ma has often commented on the fact that he is praised less for his acumen than for his courage.

We cannot allow Internet service providers to restrict the best access or to pick winners and losers in the online marketplace for services and ideas,

China's Web entrepreneurs are positioning themselves to compete in—and win—the race to build the first truly global online marketplace.

Targeted transportation options like Bridj are designed to take cars off the road. Investors, at least, see the potential; Bridj just announced it raised $4 million in funding . And the company is poised to get permits it needed from Boston and Brookline without any opposition. (A hearing on the license in Cambridge is expected next month.) It’s reasonable for city governments to keep tabs on any disruptions that new apps create. While the Boston City Council’s move to ban the parking app Haystack was at best premature, fears that the app might encourage churlish behavior were well-placed. Occasional problems experienced by users of Airbnb, the online home-rental marketplace that the Boston council plans to tackle in an upcoming hearing, deserve a close look.

When Pierre Omidyar built eBay, it was just a hobby; he kept working as a programmer for the next nine months, only leaving after his online marketplace was netting him more money than his job.

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When eBay entered the Chinese market in 2002, they did so by buying the leading Chinese online auction site—not Alibaba but an eBay impersonator called EachNet. The marriage created the ultimate power couple: the top global e-commerce site and China’s number one knockoff. eBay proceeded to strip away the Chinese company’s user interface, rebuilding the site in eBay’s global product image. Company leadership brought in international managers for the new China operations, who directed all traffic through eBay’s servers back in the United States. But the new user interface didn’t match Chinese web-surfing habits, the new leadership didn’t understand Chinese domestic markets, and the trans-Pacific routing of traffic slowed page-loading times. At one point an earthquake under the Pacific Ocean severed key cables and knocked the site offline for a few days. Meanwhile, Alibaba founder Jack Ma was busy copying eBay’s core functions and adapting the business model to Chinese realities. He began by creating an auction-style platform, Taobao, to directly compete with eBay’s core business. From there, Ma’s team continually tweaked Taobao’s functions and tacked on features to meet unique Chinese needs. His strongest localization plays were in payment and revenue models. To overcome a deficit of user trust in online purchases, Ma created Alipay, a payment tool that would hold money from purchases in escrow until the buyer confirmed the receipt of goods. Taobao also added instant messaging functions to allow buyers and sellers to communicate on the platform in real time. These business innovations helped Taobao claw away market share from eBay, whose global product mentality and deep centralization of decision-making power in Silicon Valley made it slow to react and add features. But Ma’s greatest weapon was his deployment of a “freemium” revenue model, the practice of keeping basic functions free while charging for premium services. At the time, eBay charged sellers a fee just to list their products, another fee when the products were sold, and a final fee if eBay-owned PayPal was used for payment. Conventional wisdom held that auction sites or e-commerce marketplace sites needed to do this in order to guarantee steady revenue streams.

Online dating apps create the illusion of endless choice, which can stir feelings of excitement as well as paralyzing anxiety. This virtual marketplace of love draws our attention outside of ourselves, putting us at greater risk than ever of believing that love is all about making the right choice.

The key to becoming relevant in the marketplace is to add value. The more value you can add the more relevant you will become. 

When Pierre Omidyar built eBay, it was just a hobby; he kept working as a programmer for the next nine months, only leaving after his online marketplace was netting him more money than his job. “The best entrepreneurs are not risk maximizers,” Endeavor cofounder and CEO Linda Rottenberg observes based on decades of experience training many of the world’s great entrepreneurs. “They take the risk out of risk-taking.

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